Wipro Limited Q3 FY2026 earnings call

Broader Environment

• Organizations are reshaping priorities with AI influencing planning, investment, and operations; AI is a board-level mandate.
• Deal pipeline continues to show cost optimization, vendor consolidation, and shift towards AI-led transformation.

Wipro Milestones

• Completed 80 years as a company in December and 25 years on NYSE in October.

Q3 Performance

• IT Services sequential revenue $2.64B, grew 1.4% constant currency; operating margin 17.6% (expanded 0.4% over Q2 and 0.1% YoY); closed $3.3B TCV and $871M large deal bookings.

Wipro Intelligence

• 3 strategic pillars:
  • Industry platforms/solutions: Building consulting-led AI solutions like PayerAI, NetOxygen, AutoCortex.
  • Delivery platforms: WINGS (brings AI into operations) and Vega (adds AI-driven capabilities in dev lifecycle).
  • Wipro Innovation Network: Connects labs with partners, start-ups, etc.; launched innovation labs in 3 cities.
• Examples of large deal wins: Leading UK education provider for multiyear transformation using WINGS; US fitness tech company for multiyear transformation using WINGS and Vega.

HARMAN DTS

• Acquisition complete; added engineering and AI capabilities, strengthening engineering global business line, opening new regions and industries, enabling larger transformation programs.

IT Services sequential revenue was $2.64 billion, growing 1.4% on a constant currency basis. Excluding HARMAN DTS acquisition, revenue grew 0.6% in constant currency. Operating margin was 17.6%, expanding 0.4% over adjusted quarter 2 margin and 0.1% year-on-year. Americas 1 had sequential and year-on-year growth; Americas 2 saw sequential decline; Europe grew sequentially led by a mega deal ramp-up; APMEA grew sequentially and year-on-year. BFSI grew 2.6% sequentially and 0.4% year-on-year; Health grew 4.2% sequentially and 1% year-on-year; Consumer grew 0.7% sequentially while declining 5.7% year-on-year; Tech and Com grew 4.2% sequentially and 3.5% year-on-year; EMR declined 4.9% sequentially and 5.8% year-on-year; Capco was flat year-on-year in Q3.

Q4 Guidance

• Projecting sequential IT services revenue growth of 0% to 2.0% in constant currency.
• Guidance includes incremental dilution from HARMAN DTS; impacted by fewer working days in Q4 and delayed ramp-ups of some large deals.

• Macro market uncertainties affecting sectors like EMR and Consumer.
• Delayed ramp-ups of large deals impacting Q4 growth.
• Incremental dilution from HARMAN DTS acquisition affecting margins.

Q: Nitin Padmanabhan asked about EMR vertical, deal pipeline, ramp-ups, and wage hikes.

A: Aparna mentioned large deals take a few quarters to ramp up; Srini said EMR pipeline is strong with momentum in energy (Americas and Europe) and manufacturing (Europe); Saurabh said salary hikes will be decided in next few weeks.

Q: Vibhor Singhal asked about consumer vertical outlook and tech/health vertical growth.

A: Srini said consumer vertical impacted by tariffs and SAP program hold; tech and health verticals doing well with health benefiting from open enrollment season and tech from large tech players and HARMAN acquisition.

Q: Ravi Menon asked about margin performance, sequential growth, Capco, and HARMAN impact on win rates.

A: Aparna and Srini discussed demand environment, vendor consolidation, and HARMAN DTS helping in tech and com, health, consumer, and EMR sectors.

Q: Sandeep Shah asked about deal TCV, margin guidance, and buyback.

A: Aparna said deal TCV lumps up, margin endeavor is 17% to 17.5%, and buyback is an option to return cash to shareholders.

Q: Kumar Rakesh asked about mix, margin, and acquisitions.

A: Srini said inorganic strategy aligned to priorities, looking for opportunities, and cash available for investments.

Q: Rishi Jhunjhunwala asked about headcount, restructuring cost, and D&A.

A: Saurabh said headcount driven by acquisition and large deal ramp-up; Aparna discussed restructuring and D&A related to acquisitions.

Q: Kawaljeet Saluja asked about excess cash, buyback, and impact of mega deal ramp-ups.

A: Aparna said buyback is an option, and mega deals delayed but will ramp up in coming quarters.