Wipro (WIPRO) Q2 26/27 earnings summary

Executive summary

• Q2 IT Services revenue was $2,611.5M, flat QoQ and up 0.6% YoY in non-GAAP constant currency (CC); operating margin rose 0.5 percentage points QoQ to 16.5%.

• Net income was ₹31,997M, down 4.7% QoQ and 1.9% YoY; EPS was ₹3.23, up 0.9% QoQ and 4.2% YoY.

• Q3 IT Services revenue guidance is $2,571M–$2,625M, or -1.5% to +0.5% QoQ in CC; management cited a strong forward pipeline.

Financial highlights

• IFRS IT Services revenue was ₹246,670M, up 0.9% QoQ and 9.0% YoY; operating income was ₹40,726M, up 3.9% QoQ and 6.8% YoY.

• Q2 revenue from operations was ₹247,527M versus ₹226,973M a year earlier; profit before tax was ₹42,047M versus ₹42,824M.

• Total bookings were $2,595M, down 22.9% QoQ in CC; large-deal bookings were $674M, down 58.6% QoQ in CC.

Outlook and guidance

• Q3 guidance reflects typical seasonality, furloughs and fewer working days; furloughs are expected to be broadly in line with last year.

• Two deals delayed by unsigned paperwork are expected to close in Q3; management expects strong bookings and said wins could support Q4 revenue.

• Management aims to return margins to the 17%–17.5% target band but gave no timeline; AI Native and client/business investments remain priorities.