Group 1 - Wipro Limited has signed a multi-year strategic agreement with Hanesbrands Inc. to transform its IT infrastructure and cybersecurity operations using an AI-first approach [1][2] - The agreement is part of HanesBrands' IT 2.0 transformation initiative, which aims to implement a unified, AI-led managed services model [2][3] - Wipro will enhance HanesBrands' security by enabling AI-powered predictive and preventive operations, automating security workflows, and improving regulatory compliance [3] Group 2 - Wipro operates as an IT, consulting, and business process services company globally, with segments in IT Services and IT Products [4] - Hanesbrands Inc. designs, manufactures, sources, and sells a variety of innerwear apparel across multiple regions including the Americas, Europe, and Asia Pacific [4]

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Core Points - The press conference is focused on Wipro's second quarter earnings [1] - Key executives present include the CEO, CFO, and Chief Human Resources Officer [1] Group 1 - The event is moderated by Nisha Chandrasekaran from the external communications team [1] - The conference will start with opening remarks from the CEO, followed by a financial review from the CFO [1] - A Q&A session will follow the presentations [1]

Financial Data and Key Metrics Changes - IT services revenue for Q2 FY26 was $2.6 billion, with a sequential growth of 0.3% in constant currency and a year-on-year decline of 2.6% in constant currency [5][12] - Adjusted operating margin for the quarter was 17.2%, an improvement of 0.4% compared to the same period last year [5][12] - Operating margins contracted by 60 basis points quarter-on-quarter and 10 basis points year-on-year, impacted by a one-off charge due to a client bankruptcy [12][14] Business Line Data and Key Metrics Changes - Americas One grew 0.5% sequentially and 5% year-on-year, while Americas Two declined 2% sequentially and 5% year-on-year [12] - Europe returned to sequential growth of 1.4% but declined 10.2% year-on-year, driven by BFSI [12][13] - Appmea grew 3.1% sequentially and 2.6% year-on-year, with CapCo showing a year-on-year growth of 3.2% [12][14] - BFSI grew 2.2% sequentially but declined 4% year-on-year, while healthcare declined 0.2% sequentially but grew 3.9% year-on-year [13][14] Market Data and Key Metrics Changes - Strong performance in healthcare, technology, and communication sectors in the Americas [5][7] - Tariff uncertainties are impacting consumer, energy, and manufacturing sectors, leading to reevaluation of supply chains [7] - The healthcare sector is undergoing structural changes, with Wipro actively supporting clients through this transition [7][75] Company Strategy and Development Direction - Focus on AI-powered transformations and consulting-led programs, with a strong emphasis on vendor consolidation [8][10] - Introduction of Wipro Intelligence, a unified suite of AI-powered platforms and solutions aimed at enhancing client productivity and efficiency [9][10] - Strategic partnerships, such as with a leading UK financial company and a European distribution firm, to modernize operations and drive growth [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth despite current challenges, with expectations for sequential IT services revenue growth of -0.5% to +1.5% in Q3 [11][15] - The company is focused on converting a strong backlog into revenue while maintaining operational discipline [11][15] - Management acknowledged the impact of large deal ramp-ups on margins, with a commitment to maintain margins in a narrow band [22][30] Other Important Information - The acquisition of Harman Digital Transformation Solutions is expected to close in the upcoming quarter, which is not factored into current revenue guidance [15] - Net income and EPS grew 1% year-on-year, with operating cash flows at 104% of net income for Q2 [14] Q&A Session Summary Question: Thoughts on deal to revenue conversion and future growth - Management indicated that large deal wins in BFSI are expected to ramp up in Q3, contributing to future growth [18][19] Question: Outlook on margins - Margins are expected to remain in a narrow band of 17% to 17.5%, with ongoing investments impacting margins [20][30] Question: Growth outlook despite strong deal wins - Management acknowledged the positive momentum from large deal wins but emphasized the need to convert these into revenue [27][28] Question: Client-specific challenges in Europe - Management confirmed that previous client-specific issues are behind them, and they expect growth to continue in Europe [52] Question: Impact of bankruptcy on revenue - No impact on Q2 revenue was reported, with provisions made for bad debts [85]

Financial Data and Key Metrics Changes - IT services revenue for Q2 FY 2026 was $2.6 billion, with a sequential growth of 0.3% in constant currency and a year-on-year decline of 2.6% in constant currency [5][12] - Adjusted operating margin for the quarter was 17.2%, an improvement of 0.4% compared to the same period last year [5][12] - Operating margins contracted by 60 basis points quarter-on-quarter and 10 basis points year-on-year, impacted by a one-off charge due to a client bankruptcy [12][14] Business Line Data and Key Metrics Changes - Americas 1 grew 0.5% sequentially and 5% year-on-year, while Americas 2 declined 2% sequentially and 5% year-on-year [12] - Europe returned to sequential growth of 1.4% after several quarters, while APMEA grew 3.1% sequentially and 2.6% year-on-year [12] - BFSI grew 2.2% sequentially but declined 4% year-on-year, while healthcare declined 0.2% sequentially but grew 3.9% year-on-year [12][14] Market Data and Key Metrics Changes - Strong performance in healthcare, technology, and communication sectors in the Americas [5] - Europe and APMEA markets showed growth, with BFSI leading the recovery in Europe [6][7] - Tariff uncertainties impacted consumer, energy, and manufacturing sectors, leading to reevaluation of supply chains [7] Company Strategy and Development Direction - Focus on AI-powered transformations and vendor consolidation as key drivers for growth [8][10] - Introduction of Wipro Intelligence, a unified suite of AI-powered platforms, to enhance client capabilities [9][10] - Strategic partnerships in Europe to modernize operations and improve customer experiences [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth despite current challenges, with expectations for revenue growth in Q3 projected between -0.5% to +1.5% in constant currency [11][15] - Emphasis on converting strong backlog into revenue while maintaining operational discipline [11][15] - Management acknowledged ongoing pressure on margins due to investments for growth but aims to maintain margins within a narrow band [12][22] Other Important Information - The company closed $4.7 billion in total contract value and signed 13 large deals in the quarter [8] - The Harman Digital Transformation Solutions acquisition is expected to close in the upcoming quarter, which is not included in current revenue guidance [15] Q&A Session Summary Question: Thoughts on deal to revenue conversion in BFSI - Management noted that large deal wins in BFSI are expected to ramp up in Q3, contributing to future growth [18][19] Question: Outlook on margins - Management indicated that while there are headwinds due to large deal ramp-ups, operational improvements and forex factors have been positive [21][22] Question: Growth outlook despite strong deal wins - Management acknowledged the positive momentum from large deal wins but guided for a cautious outlook due to potential volatility [27] Question: Client-specific challenges in Europe - Management confirmed that previous client-specific issues are behind them, and they expect growth to continue in Europe [52] Question: Impact of bankruptcy on revenue - Management clarified that there was no impact on Q2 revenue from the bankruptcy provision made [85]

Financial Data and Key Metrics Changes - IT services revenue for Q2 FY 2026 was $2.6 billion, with a sequential growth of 0.3% in constant currency and a year-on-year decline of 2.6% [6][18] - Adjusted operating margin for the quarter was 17.2%, an improvement of 0.4% compared to the same period last year [6][19] - Net income and EPS grew by 1% year on year, while operating cash flows remained higher than net income at 104% for Q2 [23] Business Line Data and Key Metrics Changes - Americas One grew 0.5% sequentially and 5% year on year, while Americas Two declined 2% sequentially and 5% year on year [20] - Europe reported a sequential growth of 1.4% but a year-on-year decline of 10.2% [21] - APMEA grew 3.1% sequentially and 2.6% year on year, with strong performance in India, Australia, and Southeast Asia [21] - BFSI sector showed sequential growth of 2%, driven by Europe and APMEA [85] Market Data and Key Metrics Changes - The healthcare sector is undergoing structural changes, impacting performance, but remains a strong performer for the company [9][88] - Consumer, energy, and manufacturing sectors are facing tariff uncertainties, leading to reevaluation of supply chains [9] Company Strategy and Development Direction - The company is focusing on AI adoption and vendor consolidation as key strategies for growth [9][10] - Wipro Intelligence, a unified suite of AI-powered platforms, is being introduced to enhance client capabilities [13][14] - The company aims to maintain operational discipline while converting a strong backlog into revenue [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth, particularly in BFSI, as large deals begin to ramp up [30][31] - The company anticipates a sequential IT services revenue growth of -0.5% to +1.5% in constant currency for Q3 [16][24] - Management acknowledged headwinds from large deal ramp-ups and seasonal factors affecting Q3 performance [35] Other Important Information - The Harman Digital Transformation Solutions acquisition is expected to close in the upcoming quarter, but revenues from this acquisition are not included in current guidance [24] - The company is actively investing in growth, which may pressure margins in the short term [19][35] Q&A Session Summary Question: Thoughts on deal to revenue conversion and future growth - Management noted that large deal wins in BFSI are expected to ramp up in Q3, contributing to future growth [28][29] Question: Margin outlook and transition costs - Management indicated that while there are headwinds from large deals, operational improvements and currency fluctuations have positively impacted margins [32][34] Question: Sustainability of year-on-year growth in line with peers - Management expressed confidence in sustaining growth, focusing on executing deal wins and maintaining a robust pipeline [50][52] Question: Clarity on renewal deals and their impact - Management clarified that renewal deals are a mix of renewals and expansions, with some deflationary pressures expected [95][96] Question: Impact of bankruptcy on revenue - Management confirmed that there was no impact on Q2 revenue from the bankruptcy provision made [99]

Financial Data and Key Metrics Changes - IT services revenue for Q2 FY26 was $2.6 billion, with a sequential growth of 0.3% in constant currency and a year-on-year decline of 2.6% in constant currency [4][10] - Adjusted operating margin for the quarter was 17.2%, an improvement of 0.4% compared to the same period last year [4][10] - Operating margins contracted by 60 basis points quarter-on-quarter and 10 basis points year-on-year, impacted by a one-off charge due to a client bankruptcy [10][12] - Net income and EPS grew by 1% year-on-year, with operating cash flows at 104% of net income for Q2 [12] Business Line Data and Key Metrics Changes - Americas One grew 0.5% sequentially and 5% year-on-year, while Americas Two declined 2% sequentially and 5% year-on-year [10] - Europe returned to sequential growth of 1.4% after several quarters, driven by BFSI [5][11] - Appmea grew 3.1% sequentially and 2.6% year-on-year, while BFSI grew 2.2% sequentially but declined 4% year-on-year [11][12] - Healthcare declined 0.2% sequentially but grew 3.9% year-on-year [11] Market Data and Key Metrics Changes - Strong performance in healthcare, technology, and communication sectors in the Americas [4][5] - Tariff uncertainties impacted consumer, energy, and manufacturing sectors, leading to reevaluation of supply chains [5] - The Phoenix Group deal is expected to generate revenue from Q3, providing further momentum in Europe [5][11] Company Strategy and Development Direction - Focus on AI adoption and vendor consolidation as key drivers for growth [5][6] - Introduction of Wipro Intelligence, a unified suite of AI-powered platforms and solutions, aimed at enhancing client productivity and efficiency [7][8] - Continued investment in growth despite margin pressures, with a goal to maintain margins in a narrow band [10][12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth driven by large deal ramp-ups, particularly in BFSI [17][18] - Q3 guidance for IT services revenue growth is projected between -0.5% to +1.5% in constant currency [9][12] - Management acknowledged headwinds from seasonality and ongoing investments impacting margins [20][26] Other Important Information - The Harman Digital Transformation Solutions acquisition is expected to close in Q3, not factored into current revenue guidance [13][12] - Strong deal wins in Q2 included $4.7 billion in total contract value and 13 large deals [6][10] Q&A Session Summary Question: Thoughts on deal to revenue conversion in BFSI - Management noted that large deal wins in BFSI are expected to ramp up in Q3, with a mix of renewals and expansions [16][17] Question: Outlook on margins - Management indicated that margins are expected to remain in a narrow band of 17% to 17.5%, with ongoing investments impacting margins [19][25] Question: Growth sustainability and improvement - Management expressed confidence in sustaining growth, driven by a robust pipeline and execution of deal wins [28][30] Question: Clarity on renewal deals - Management clarified that renewal deals are a mix of renewals and expansions, with productivity gains expected to offset any deflationary pressures [70][71] Question: Impact of client-specific challenges in Europe - Management confirmed that client-specific challenges are behind them, with expectations for improved growth trajectory in Europe [42][43]

Financial Performance - IT Services revenue reached $26043 million in Q2 FY25-26[6], showing a sequential growth of 03% in constant currency[6] and a year-over-year decline of 26% in constant currency[9] - The adjusted operating margin for IT Services was 172%[2, 11], after accounting for a $131 million provision related to a customer bankruptcy[11] - Total Bookings reached $4688 million[2, 6], while Large Deal TCV amounted to $2853 million[2, 6], representing a 905% year-over-year increase in constant currency[2] - Operating Cash Flow was $382 million[2] Strategic Market Units and Sectors - Americas 1 accounted for 330% of the Strategic Market Units mix[2, 6] - Americas 2 accounted for 296% of the Strategic Market Units mix[2, 6] - Europe accounted for 263% of the Strategic Market Units mix[2, 6] - APMEA accounted for 111% of the Strategic Market Units mix[2, 6] - Banking, Financial Services and Insurance sector contributed 343% to the sector mix[2, 6] Outlook and Other Metrics - The company anticipates IT Services revenue to be in the range of $2591 million to $2644 million for the quarter ending December 31, 2025[3], which translates to a sequential guidance of (-)05% to (+)15% in constant currency terms[3] - The total headcount was 235,492[4] - Net utilization (excluding trainees) stood at 864%[4, 7] - Offshore revenue accounted for 602% of services revenue[4, 8]

Core Insights - Wipro Limited reported financial results for the quarter ended September 30, 2025, showing a slight revenue growth of 0.3% quarter-over-quarter in constant currency terms and a net income growth of 1.2% year-over-year [1][6][3] - The company achieved large deal bookings of $2.9 billion, reflecting a significant year-over-year growth of 90.5%, contributing to overall deal bookings of $4.7 billion [1][6] - The adjusted operating margin for Q2'26 was reported at 17.2%, an increase of 0.4% year-over-year, with operating cash flows at 103.8% of net income [1][6][3] Financial Performance - Gross revenue for the quarter was Rs 227.0 billion ($2,556.6 million), marking a 2.5% increase quarter-over-quarter and a 1.8% increase year-over-year [6] - IT services segment revenue was $2,604.3 million, showing a 0.7% increase quarter-over-quarter but a 2.1% decrease year-over-year [6] - Net income for the quarter was Rs 32.5 billion ($365.6 million), a decrease of 2.5% quarter-over-quarter but an increase of 1.2% year-over-year [6] Strategic Developments - Wipro secured multiple large and strategic deals across various industries, including a multi-year infrastructure modernization engagement with a leading European financial institution [5][10] - The company is focusing on AI-driven solutions, with engagements aimed at transforming healthcare platforms and enhancing customer engagement in the utilities sector [10][5] - Wipro's strategy emphasizes resilience and adaptation to global shifts, particularly in the context of AI advancements [4][10] Outlook - For the quarter ending December 31, 2025, Wipro expects IT Services revenue to be in the range of $2,591 million to $2,644 million, indicating a sequential guidance of (-)0.5% to (+)1.5% in constant currency terms [3][4] - The guidance does not include revenue from the recently announced acquisition of Harman Digital Transformation Solutions [3]