Wipro (WIPRO) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue was $2.63 billion, up 0.1% sequentially in constant currency and slightly down year-on-year, with resilient performance amid macroeconomic challenges and cautious client optimism, especially in AI-related areas.

• Operating margin improved to 17.5%, a 12-quarter high, up from 16.8% in the previous quarter, despite wage hikes.

• Total bookings reached $3.5 billion, with large deal TCV at $1 billion and a 24.4% year-on-year increase.

• Strategic focus on AI, large account mining, and leadership development continues, with 50,000 employees now AI-certified.

• The Board declared an interim dividend of ₹6 per share and completed a 1:1 bonus share issue in December 2024.

Financial highlights

• IT services revenue grew 0.1% sequentially and declined 0.7% year-on-year in constant currency.

• Operating margin reached 17.5%, up 0.7% sequentially and 1.5% year-on-year.

• EPS for Q3 FY25 was ₹3.21 (basic), up from ₹2.58 in Q3 FY24, and net income grew 24% year-on-year and 5% sequentially.

• Operating cash flow was $576.4 million, representing 146.5% of net income.

• Capco business saw 9% order book growth and 11% revenue growth year-on-year.

Outlook and guidance

• Q4 FY25 revenue guidance is -1% to +1% sequential growth in constant currency ($2.602–$2.655 billion), based on specific exchange rates.

• Management expects to maintain operating margins in a narrow band around 17.5%.

• The company continues to focus on growth across all strategic market units and segments, with ongoing investments in digital, cloud, and consulting services.

• Gradual recovery anticipated, with Americas showing momentum and Europe/APMEA remaining soft.