WNS (WNS) Q3 2025 earnings summary

Executive summary

• Q3 FY25 revenue was $333.0M, up 2.1% year-over-year and 3.2% sequentially, with net revenue less repair payments at $319.1M, up 1% year-over-year and 2.7% sequentially.

• Net income for Q3 was $48.6M, a 17% increase from $41.5M last year, with margin expansion due to lower G&A and amortization expenses.

• Seven new clients were added and 52 existing relationships expanded, with global headcount at 63,390.

• No material changes in client decision-making or sales cycles; steady conversion of opportunities is expected to drive high single to low double-digit revenue growth in fiscal 2026.

• Large deal pipeline remains robust, but revenue from these is excluded from guidance until signed due to timing uncertainty.

Financial highlights

• Gross profit for Q3 FY25 was $116.6M (35.0% of revenue), up from $114.3M (35.1%) last year; operating profit was $45.2M (13.6% margin), up from $39.4M (12.1%).

• Adjusted operating margin was 19.3%, down from 19.7% last year but up from 18.6% last quarter.

• Adjusted net income was $47M, down from $58.5M last year and $51.5M last quarter; adjusted diluted EPS was $1.04.

• Cash and investments at quarter-end were $231.5M; debt was $199.6M; $88.7M in operating cash flow, $12.1M in capex, $58.4M in debt repaid.

• DSO improved to 34 days from 35 days last year and 38 days last quarter.

Outlook and guidance

• FY25 revenue less repair payments expected between $1,255M and $1,271M, down from $1,284.3M in FY24.

• Full-year adjusted net income expected at $205M–$209M, including a one-time $12.2M benefit from a facility asset sale.

• Adjusted EPS guidance: $4.46–$4.55; capex expected up to $60M for fiscal 2025.

• Fiscal 2026 expected to return to high single to low double-digit revenue growth, with only 2% unusual headwinds anticipated.

• Q4 adjusted operating margin expected to be around 20–21%, with run-rate margins in the high 19% to 20% range going forward.