Wipro (WIPRO) Q3 25/26 earnings summary

Executive summary

• Q3 FY2026 IT services revenue reached $2.64 billion (₹233,781 million), up 1.4% sequentially in constant currency, with broad-based growth except in Americas 2 and EMR.

• Operating margin was 17.6%, expanding 0.4% quarter-over-quarter and 0.1% year-over-year, with operating income at ₹41,186 million.

• Harman DTS acquisition completed, enhancing engineering and AI capabilities and contributing to revenue growth.

• Total contract value closed at $3.3 billion, with $871 million in large deal bookings, both down year-on-year.

• Interim dividend of ₹6 per share declared, with total shareholder payout exceeding $1.3 billion for the year.

Financial highlights

• IT services revenue grew 1.4% sequentially in constant currency and 1.2% in reported terms; year-on-year growth was 0.2% in reported terms but declined 1.2% in constant currency.

• Adjusted net income for the quarter was ₹33.6 billion, up 3.5% quarter-on-quarter and flat year-on-year; consolidated net profit was ₹31,450 million.

• Operating cash flows were 135% of net income for Q3; free cash flow was 120.7% of net income.

• Gross cash, including investments, stood at $6.5 billion.

• Basic EPS for Q3 FY26 was ₹2.98 (consolidated), compared to ₹3.21 in Q3 FY25.

Outlook and guidance

• Q4 IT services revenue guidance is $2.635–$2.688 billion, translating to 0–2% sequential growth in constant currency.

• Guidance includes incremental two months of Harman DTS revenue and factors in fewer working days and delayed ramp-ups in large deals.

• Margins are expected to remain in the 17–17.5% band, though pressure from acquisitions and investments is anticipated.

• The company continues to monitor the impact of new Indian Labour Codes and will adjust accounting treatment as further government clarifications are issued.