Wipro (WIPRO) Q2 26/27 (Media) earnings summary

Executive summary

• Q2 IT services revenue was $2.61 billion, flat QoQ and up 0.6% YoY in constant currency; operating margin expanded 50 bps to 16.5%.

• Q2 consolidated revenue from operations was ₹247,527 million versus ₹226,973 million YoY; profit for the period was ₹31,997 million versus ₹32,624 million.

• Demand was largely unchanged, with clients prioritizing efficiency, productivity, AI adoption and long-term value; three of four SMUs grew sequentially.

• AI opportunities, strategic investments and a healthy pipeline supported confidence despite subdued Q2 bookings and Q3 seasonality.

• Deloitte issued unmodified audit opinions on quarterly and half-year standalone and consolidated results.

Financial highlights

• IT services revenue was $2.61 billion, flat QoQ and up 0.6% YoY in constant currency, near the upper end of prior guidance.

• Q2 profit before tax was ₹42,047 million and tax expense was ₹10,050 million; H1 FY27 revenue from operations was ₹492,313 million and profit was ₹65,560 million.

• Net income was ₹32 billion, down 4.7% QoQ as net other income fell 68% following the June 2026 buyback.

• EPS grew 0.9% QoQ and 4.2% YoY; Q2 basic and diluted EPS were ₹3.23 each versus ₹3.10 and ₹3.09 YoY.

• H1 consolidated operating cash flow was ₹85,928 million versus ₹74,991 million; cash and cash equivalents at September 30, 2026 were ₹95,016 million.

Outlook and guidance

• Q3 IT services revenue guidance is $2.571 billion-$2.625 billion, or sequential growth of -1.5% to +0.5% in constant currency; seasonal furloughs are expected to weigh on results.

• Management expects consistent margin improvement toward its 17%-17.5% target range, while retaining flexibility to invest for growth.

• Management expects slipped awarded deals to be signed in Q3, described Q3 bookings as bullish and affirmed expectations for a meaningful second-half increase in deals.