Wipro's Q3 revenue tops estimates on Americas segment growth
Wipro posted Q3 revenue above forecasts, driven by growth in its Americas communications, health and consumer segments. Revenue beat underlines strength in priority verticals and could bolster investor sentiment.
1. Strong Top-Line Growth in Q3
Wipro reported gross revenue of Rs 235.6 billion for the quarter ended December 31, 2025, representing a 3.8% increase sequentially and 5.5% year-on-year. IT Services segment revenue reached $2,635.4 million, up 1.2% quarter-on-quarter and 0.2% year-on-year, while constant currency IT Services revenue grew 1.4% sequentially before dipping 1.2% year-on-year. Total bookings amounted to $3,335 million, down 5.7% in constant currency year-on-year, with large deal bookings of $871 million, reflecting an 8.4% year-on-year decline in constant currency terms.
2. Margin Expansion and Cash Generation
Operating margins for the IT Services segment expanded 90 basis points sequentially to 17.6% and edged up 10 basis points year-on-year, marking the highest quarterly margin in several years. Net income stood at Rs 31.2 billion, down 3.9% sequentially and 7.0% year-on-year; adjusted for labour code changes, net income rose to Rs 33.6 billion, up 3.6% quarter-on-quarter. Earnings per share were Rs 2.98, declining 3.9% quarter-on-quarter, while adjusted EPS improved to Rs 3.21. Operating cash flow surged 25.7% sequentially to Rs 42.6 billion, equivalent to 135.4% of net income.
3. AI-Led Strategic Wins
During the quarter, Wipro secured seven multi-year, large-deal contracts across industries. Highlights include a renewal with a global technology leader to enhance trust and safety operations using AI and machine-learning models; an expansion with a US health insurer leveraging Wipro’s PayerAI platform for member enrollment services; a transformation engagement with a North American furnishings manufacturer to deploy AI accelerators; and strategic programs with European insurance, facilities management and F&B clients to modernize infrastructure, deploy conversational AI, and drive hybrid cloud adoption.
4. Cautious Yet Positive Q4 Outlook
For the quarter ending March 31, 2026, Wipro expects IT Services revenue of $2,635 million to $2,688 million, implying flat to 2.0% sequential growth in constant currency. Management cited steady deal pipeline momentum and continued traction for AI-powered offerings, while noting potential foreign-exchange headwinds based on assumed GBP/USD, EUR/USD, AUD/USD, CAD/USD and USD/INR rates.