Wipro (WIPRO) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw resilient performance amid macroeconomic challenges, with cautious client optimism and a gradual return of discretionary spending, especially in AI-related areas.

• IT Services revenue for Q3 FY25 was $2.63 billion (₹222,851 million), slightly above guidance, with a TCV of $3.5 billion in bookings and 17 large deals totaling $1 billion.

• Net profit for Q3 FY25 stood at ₹33,667 million, up from ₹27,006 million in Q3 FY24, with EPS rising to ₹3.21.

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

• Operating cash flows were 146.5% of net income, totaling ₹49.3 billion for the quarter.

Financial highlights

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

• Operating margin reached a 12-quarter high of 17.5%, up 0.7% sequentially and 1.5% year-on-year, despite wage hikes.

• EPS and net income grew 24% year-on-year and 5% sequentially, driven by margin expansion and stable ETR of 24%.

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

• Operating cash flow as a percentage of net income was 146.5% for the quarter.

Outlook and guidance

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

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

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

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