Wipro’s Q3 Revenues Rise 5.5% to Rs 235.6B on Americas Growth
Wipro’s Q3 gross revenue rose 5.5% year-on-year to Rs 235.6 billion ($2.62 billion), exceeding analysts’ estimates. Growth in Americas communications, health and consumer segments powered the beat, while total bookings slipped 5.7% YoY to $3.34 billion.
1. Q3 Fiscal 2026 Revenue and Profit Trends
Wipro reported gross revenue of Rs 235.6 billion for the quarter ended December 31, 2025, marking a 3.8% sequential increase and a 5.5% gain year-over-year. The IT services segment contributed $2,635.4 million in revenue, up 1.2% compared with the prior quarter and 0.2% year-on-year. Net income reached Rs 31.2 billion, reflecting a 3.9% decline sequentially and a 7.0% drop year-over-year. Adjusting for the impact of new labour code gratuity costs, net income would have been Rs 33.6 billion, a 3.6% sequential rise and a slight 0.3% year-on-year improvement.
2. Margin Expansion and Cash Flow Strength
Operating margins in the IT services segment expanded by 90 basis points quarter-to-quarter to 17.6%, representing the strongest margin performance in several years and edging 10 basis points above the year-ago level. Operating cash flow surged to Rs 42.6 billion, up 25.7% sequentially, equivalent to 135.4% of net income, although this figure was 13.6% below the prior year period. Voluntary attrition on a trailing 12-month basis stood at 14.2%, underscoring improvements in talent retention strategies.
3. Guidance for Q4 Fiscal 2026
Management forecasts IT services revenue for the quarter ending March 31, 2026 to range between $2,635 million and $2,688 million, implying sequential growth of up to 2.0% in constant currency. Exchange rate assumptions include GBP/USD at 1.33, EUR/USD at 1.17, AUD/USD at 0.65, USD/INR at 88.85 and CAD/USD at 0.72. This guidance reflects confidence in steady deal pipeline conversion and continued uptake of AI-powered solutions.
4. Strategic Deal Wins and AI-Led Momentum
During the quarter, Wipro secured bookings of $3,335 million in total contract value, with large deals (contracts ≥ $30 million) amounting to $871 million. Key engagements include an extension of a decade-long relationship with a global technology leader for AI model training and trust & safety operations, and a multi-year renewal with a US health insurer leveraging Wipro’s PayerAI platform for member enrolment services. Additional wins span manufacturing, facilities management, insurance, financial services and digital workplace transformations, showcasing accelerated adoption of Wipro Intelligence™ and AI-infused automations across industries.