Wipro (WIPRO) Q2 25/26 earnings summary

Executive summary

• IT services revenue for Q2 FY26 reached $2.6 billion (₹226,405 million), growing 0.3% sequentially in constant currency and 0.7% in reported terms, but declining year-on-year.

• Adjusted operating margin was 17.2%, up 0.4% year-on-year, with a one-off charge due to a client bankruptcy impacting reported margins.

• Strong deal wins with $4.7 billion in total contract value and 13 large deals closed, including two mega deals in healthcare and BFSI; large deal bookings rose 90.5% year-on-year.

• Europe returned to sequential growth, led by BFSI, and Capco showed both sequential and year-on-year growth.

• AI-powered platforms and consulting-led programs are driving transformation and client engagement.

Financial highlights

• Consolidated revenue from operations for Q2 FY26 was ₹226,973 million, up from ₹223,016 million in Q2 FY25.

• Operating margin for Q2 was 16.7%, impacted by a provision for customer bankruptcy; adjusted margin at 17.2%.

• Net income for Q2 FY26 was ₹32,624 million, up 1.2% year-on-year; EPS at ₹3.10.

• Operating cash flows were 104% of net income; gross cash including investments stood at $6 billion (₹130,837 million).

• Accounting yield for average investments in India was 7.1%; ETR at 23.8% for Q2 FY26.

Outlook and guidance

• Q3 IT services revenue guidance: -0.5% to +1.5% sequential growth in constant currency, translating to $2.59–$2.64 billion.

• Guidance excludes revenue from the pending Harman Digital Transformation Solutions acquisition, expected to close by December 2025.

• Focus remains on converting backlog to revenue and maintaining operational discipline for profitable growth.