Wipro reported IT services revenue of $2.61 billion for the quarter ended 30 September 2026 on its call of 15 October. Revenue was flat sequentially and up 0.6% year on year in constant currency. Operating margin was 16.5%, up 0.5% on the quarter. Net income was about ₹32 billion, down 5% sequentially, and earnings per share were ₹3.23, up 0.9% sequentially and 4.2% year on year. Operating cash flow was 166% of net income, and gross cash was 4.6 billion as of 30 September.
Total contract value was $2.6 billion, with nine large deals signed. Two deals slipped because contracts were not signed in time, and management said both are expected to close in the third quarter. Net other income declined 68% sequentially, which management linked to a smaller investable surplus after the buyback completed in June 2026.
Among regions, in constant currency, Europe grew 0.6% sequentially and 5.1% year on year, and APMEA grew 3.1% sequentially and 13% year on year. Americas 1 fell 2.1% sequentially. Health fell 3.8% sequentially and 6.5% year on year, which management attributed to US policy changes and payer cost pressure. Management said an AI-native unit launched in April 2026 has over 2,000 engineers.
For the December 2026 quarter, Wipro guided revenue of $2.571 billion to $2.625 billion, or minus 1.5% to plus 0.5% sequentially in constant currency. Management cited seasonal furloughs and fewer working days. On headcount, the chief human resources officer said it was flat year on year, with no campus hiring in the first half and campus hiring planned for the second half.
Positives
- Margin edged up while investment continued. Management said: “We will work towards improving the margins even as we create headspace for growth.”
- Management said earlier client problems have eased. Management said: “the client-specific issues that we had highlighted are largely behind us”
- Outcome-based deals are gaining ground. Management said: “we are seeing growing success in outcome-based deals and driving nonlinear growth.”
- Management expects pricing pressure to turn. Management said: “we should be at that inflection curve in a few quarters”
Watch-points
- Demand was described as unchanged. Management said: “This quarter, demand environment has remained largely unchanged.”
- Some large deals did not close in the quarter. Management said: “we had few deals where the contract could not be signed on time”
- Investment can weigh on margin. Management said: “We will continue to make these investments even when they create near-term margin headwinds.”
- Health clients are cutting discretionary spend. Management said: “payers are tightening discretionary spend and prioritizing AI, automation”
Source: Wipro Q2 FY27 earnings call transcript.
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