Core Insights - The new China-led digital currency platform, mBridge, has seen transactions exceed $55 billion, indicating a growing alternative to dollar-dependent payment systems [1][2] - The digital yuan accounts for approximately 95% of the transaction volume on the mBridge platform, which has processed over 4,000 cross-border transactions since its inception [2][3] - The e-CNY, the world's largest central bank digital currency experiment, has processed over 3.4 billion transactions worth around $2.4 trillion, marking an 800% increase from 2023 [3] Industry Developments - The Atlantic Council highlights that the developments in digital currency infrastructure suggest a gradual internationalization of the yuan, aiming to create parallel settlement systems rather than directly displacing the dollar [4] - The progress of mBridge is being monitored by global policymakers, especially after the Bank for International Settlements withdrew from the project in late 2024 [6] - A separate initiative involving seven major Western central banks is underway, focusing on enhancing testing and collaboration with over 40 commercial banks [7]

Financial Data and Key Metrics Changes - IT services sequential revenue for Q3 was $2.64 billion, growing 1.4% in constant currency and 1.2% in reported currency, with a year-on-year growth of 0.2% in reported currency [10][11] - Operating margins improved to 17.6%, an increase of 40 basis points from Q2 and 10 basis points year-on-year, marking one of the best margin performances in recent years [10][11] - Adjusted net income for the quarter was INR 33.6 billion, with adjusted EPS at INR 3.21, reflecting a 3.5% sequential increase and flat year-on-year [11] Business Line Data and Key Metrics Changes - BFSI sector grew 2.6% sequentially and 0.4% year-on-year, while Health sector grew 4.2% sequentially and 1% year-on-year [12][13] - Consumer sector saw a sequential growth of 0.7% but a year-on-year decline of 5.7% [13] - Technology and Communications sector grew 4.2% sequentially and 3.5% year-on-year, while EMR declined 4.9% sequentially and 5.8% year-on-year [13] Market Data and Key Metrics Changes - Americas 1 market grew 1.8% sequentially and 2.8% year-on-year, while Americas 2 declined 0.8% sequentially and 5.2% year-on-year [12] - Europe market grew 3.3% sequentially but declined 4.6% year-on-year, while APMEA grew 1.7% sequentially and 6.6% year-on-year [12][13] Company Strategy and Development Direction - The company is positioning itself for an AI-first world, focusing on AI-led transformation across industries [2][4] - Three strategic pillars include industry platforms and solutions, delivery platforms for AI adoption, and the Wipro Innovation Network to foster partnerships and explore new technologies [5][6] - The company aims to maintain margins while integrating the Harman DTS acquisition, which is expected to enhance engineering and AI capabilities [9][11] Management's Comments on Operating Environment and Future Outlook - Management noted a strong pipeline of opportunities across sectors, with AI becoming central to client strategies for modernization and efficiency [20][21] - The guidance for Q4 projects IT services revenue growth of 0-2% in constant currency, factoring in the Harman DTS acquisition and fewer working days [9][15] - Management expressed confidence in maintaining margins despite challenges in the revenue environment and pricing pressures [42] Other Important Information - The board declared an interim dividend of INR 6 per share, with total cash distributed to shareholders exceeding $1.3 billion for the financial year [15] - The company has established centers of excellence in collaboration with universities to enhance recruitment of AI-skilled talent [34][36] Q&A Session Summary Question: What are the expectations for FY 2027 compared to FY 2026? - Management indicated a strong pipeline and secular growth across sectors, suggesting optimism for FY 2027 [18] Question: What is the impact of AI on deal bookings? - Management clarified that AI is not compressing deal bookings but is instead leading to more opportunities [56] Question: How is the company addressing geopolitical uncertainties? - Management noted that while geopolitical uncertainties exist, they do not significantly impact client decision-making at this time [32] Question: What is the recruitment strategy for AI skills? - The company is focusing on campus recruitment and upskilling existing talent, with plans to hire 2,500 freshers in the next quarter [45][46] Question: What is the outlook for discretionary spending? - Management is closely monitoring discretionary spending as clients finalize budgets, indicating a strong pipeline across sectors [24][25]

Financial Data and Key Metrics Changes - IT services sequential revenue for Q3 was $2.64 billion, growing 1.4% in constant currency and 1.2% in reported currency, with a year-on-year growth of 0.2% in reported currency [10][11] - Operating margins were at 17.6%, expanding 40 basis points sequentially and 10 basis points year-on-year, marking one of the best margin performances in recent years [10][11] - Adjusted net income for the quarter was INR 33.6 billion, with adjusted EPS at INR 3.21, reflecting a 3.5% sequential increase and flat year-on-year [11] Business Line Data and Key Metrics Changes - BFSI sector grew 2.6% sequentially and 0.4% year-on-year, while healthcare grew 4.2% sequentially and 1% year-on-year [12][13] - Consumer sector saw a sequential growth of 0.7% but a year-on-year decline of 5.7% [13] - Technology and communication sector grew 4.2% sequentially and 3.5% year-on-year, while EMR declined 4.9% sequentially and 5.8% year-on-year [13] Market Data and Key Metrics Changes - Americas 1 market grew 1.8% sequentially and 2.8% year-on-year, while Americas 2 declined 0.8% sequentially and 5.2% year-on-year [12] - Europe grew 3.3% sequentially but declined 4.6% year-on-year, while APMEA grew 1.7% sequentially and 6.6% year-on-year [12][13] Company Strategy and Development Direction - The company is positioning itself for an AI-first world, focusing on AI-led transformation across industries [2][3] - Three strategic pillars include industry platforms and solutions, delivery platforms for AI adoption, and the Wipro Innovation Network to connect with partners and startups [5][6] - The company aims to maintain margins while integrating the Harman DTS acquisition, which adds engineering and AI capabilities [9][11] Management's Comments on Operating Environment and Future Outlook - Management noted a strong pipeline of opportunities across sectors, with AI becoming central to client strategies [20][21] - The guidance for Q4 projects IT services revenue growth of 0-2% in constant currency, influenced by fewer working days and delays in ramp-ups [9][15] - Management expressed confidence in maintaining margins despite challenges in the revenue environment and pricing pressures [42][43] Other Important Information - The board declared an interim dividend of INR 6 per share, with cash distributed to shareholders exceeding $1.3 billion for the financial year [15] - The company has completed restructuring exercises and does not anticipate further charges related to the Labor Code implementation [14][15] Q&A Session Summary Question: What are you hearing from clients regarding revenue and AI? - Management indicated a strong pipeline and secular growth across sectors, with AI being a central theme in client discussions [18][20] Question: What is the outlook for discretionary spending? - Clients are focusing on cost optimization and leveraging AI for efficiency, with a strong pipeline across sectors [24][25] Question: What is the impact of geopolitical uncertainties on client decision-making? - Management noted that while uncertainties exist, clients are responding positively to market conditions, particularly in the U.S. [32][39] Question: How is the company addressing AI skills in recruitment? - The company is creating centers of excellence in collaboration with universities to build AI-related curricula and recruit talent [34][36] Question: What is the strategy regarding public sector deals? - The company is focused on partnering with GCCs and leveraging its capabilities to support clients in the public sector [64][71]

Financial Data and Key Metrics Changes - IT services revenue for Q3 2026 was $2.64 billion, reflecting a sequential growth of 1.4% in constant currency and 0.2% year-on-year in reported currency [3][10] - Operating margins improved to 17.6%, an increase of 40 basis points from Q2 and 10 basis points year-on-year, marking one of the best margin performances in recent years [10][11] - Adjusted net income for the quarter was INR 33.6 billion, with adjusted EPS at INR 3.21, representing a 3.5% sequential increase and flat year-on-year [11] Business Line Data and Key Metrics Changes - BFSI sector grew 2.6% sequentially and 0.4% year-on-year, while healthcare grew 4.2% sequentially and 1% year-on-year [12] - Consumer sector saw a sequential growth of 0.7% but a decline of 5.7% year-on-year, indicating mixed performance [12] - Technology and communication sectors grew 4.2% sequentially and 3.5% year-on-year, while EMR declined 4.9% sequentially and 5.8% year-on-year [12] Market Data and Key Metrics Changes - Americas 1 market unit grew 1.8% sequentially and 2.8% year-on-year, while Americas 2 declined 0.8% sequentially and 5.2% year-on-year [11] - Europe experienced a sequential growth of 3.3% but a year-on-year decline of 4.6% [11] - APMEA region grew 1.7% sequentially and 6.6% year-on-year, driven by strong performance in India, the Middle East, and Southeast Asia [12] Company Strategy and Development Direction - The company is positioning itself for an AI-first world, focusing on AI-led transformation across industries [2][3] - Strategic pillars include industry platforms and solutions, delivery platforms for AI adoption, and the Wipro Innovation Network to foster partnerships and innovation [5][6] - The company aims to maintain operational rigor and margin performance while integrating the Harman DTS acquisition to enhance engineering and AI capabilities [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted a strong pipeline of opportunities, with AI becoming central to client strategies for modernization and efficiency [19][20] - The guidance for Q4 projects IT services revenue growth of 0-2% in constant currency, factoring in the Harman DTS acquisition and fewer working days [9][15] - Management expressed confidence in maintaining margins despite challenges from large deal ramp-ups and pricing pressures [40][41] Other Important Information - The board declared an interim dividend of INR 6 per share, with total cash distributed to shareholders exceeding $1.3 billion for the financial year [15] - The company recorded two one-off charges impacting net income: INR 302 crores for graduate expenses and INR 263 crores for restructuring [13] Q&A Session Summary Question: Insights on client spending and AI revenue - Management indicated a strong pipeline and secular growth across sectors, with AI becoming a focal point for client projects [17][19] Question: Reasons for TCV decline and outlook - Management clarified that TCV bookings were strong year-to-date, with a healthy pipeline despite quarterly fluctuations [25][26] Question: Impact of geopolitical uncertainties on client decisions - Management noted that while geopolitical uncertainties exist, they do not significantly impact client decision-making at this time [31] Question: Recruitment plans and AI skills - The company is focusing on building AI skills through partnerships with universities and plans to ramp up campus recruitment [32][34] Question: Discretionary spending outlook - Management is closely monitoring discretionary spending as clients finalize budgets, with a strong pipeline expected to drive future growth [23][24]

Group 1: Emergency Power Auction - The White House is expected to propose an emergency power auction for tech companies to bid on new power plants, with contracts lasting 15 years [4] - PJM Interconnection, the largest grid operator in the U.S., will be instructed to conduct this auction to address energy supply issues and rising costs due to increased demand from data centers [5] Group 2: Company Movements - Constellation Energy (CEG) shares increased by 1.1% after a prior rise of 3.2% [6] - Vistra (VST) shares rose by 2% following a 6.6% increase [6] - NRG Energy (NRG) shares went up by 1.8% after closing 5.8% higher [6] Group 3: Leadership Changes at Disney - Kathleen Kennedy is stepping down from her leadership role at Lucasfilm after nearly 14 years, having joined as co-chair with George Lucas [7] - Dave Filoni will take over creative leadership at Lucasfilm, while Lynwen Brennan will act as co-president, focusing on the business side [8] Group 4: Jamie Dimon's Statements - Jamie Dimon, CEO of JPMorgan Chase, expressed no interest in becoming chair of the Federal Reserve, stating there is "absolutely, positively no chance" he would take the role [9] - Dimon is open to considering a position at the U.S. Treasury if approached, but he intends to remain CEO of JPMorgan Chase for at least another five years [9]

Market Performance - The A-share market showed strong overall performance in 2025, with major indices all closing higher. The ChiNext Index led with a 49.57% increase, followed by the Shenzhen Component Index at 29.87%, the Shanghai Composite Index at 18.41%, and the CSI 300 Index at 17.66% [2] - The STAR 200 Index surged by 59.31%, and the ChiNext 50 Index rose by 57.45% [2] - The Hong Kong stock market also performed well, with the Hang Seng Index rising by 27.77%, marking its largest annual increase since 2017. The Hang Seng Tech Index increased by 23.45%, and the Hang Seng China Enterprises Index rose by 22.27% [2] - In contrast, the bond market faced challenges, with the 10-year government bond yield rising above 1.9%, ending a two-year bull market [2] Mixed Public Fund Performance - As of December 31, 2025, there were 895 mixed public funds in existence, with an average net value growth rate of 4.52% for the year [3] - Over 70% of the products had a net value growth rate between 1% and 5%. Twelve products exceeded a 20% growth rate, while 38 products had growth rates between 10% and 20%. Two products experienced negative growth [3] - Ningyin Wealth Management and Huihua Wealth Management led in average returns, both exceeding 10% for the year [3] - The top ten performing products came from six different wealth management companies, with Ningyin Wealth Management having four products on the list [3] Product Analysis - The "Fuli Xingyi Intelligent Quantitative Index Growth 3-Month Minimum Holding Period No. 1 Mixed Wealth Management Product A" from Xingyin Wealth Management is classified as a medium-high risk product, with 43.06% in equity holdings and 53.21% in cash and bank deposits as of Q3 2025 [4] - The product is expected to focus on high-grade credit bonds and technology growth sectors in the equity market [4] - The "CITIC Wealth Management Zhi Rui Win Progress No. 1 Net Value Type RMB Wealth Management Product" from Xinyin Wealth Management is also a medium-high risk product, with 47.73% of its investments in public funds and 25.78% in equity investments as of Q3 2025 [4] - This product includes gold stock ETFs in its top ten assets, which may benefit from a strong performance in the gold sector [4]

Market Sentiment - The CNN Money Fear and Greed index showed improvement in overall market sentiment, remaining in the "Greed" zone with a current reading of 61.5, up from 61 [1][5] - U.S. stocks settled higher, with the Dow Jones index gaining close to 300 points during the session, closing at 49,442.44 [1][3] Company Performance - Goldman Sachs Group Inc. gained more than 4% after reporting better-than-expected fourth-quarter profit [2] - Morgan Stanley shares surged almost 6% following upbeat quarterly results [2] - Chip stocks were among the top gainers, particularly after Taiwan Semiconductor Manufacturing Co. reported another record quarter [1] Economic Indicators - U.S. import prices increased by 0.1% year-over-year in November, while export prices rose by 3.3% year-over-year [2] - U.S. initial jobless claims declined by 9,000 to 198,000 in the week ending January 10, compared to market estimates of 215,000 [2] Sector Performance - Most sectors on the S&P 500 closed positively, with utilities, industrials, and real estate stocks recording the biggest gains, while energy and health care stocks closed lower [3] Upcoming Earnings - Investors are awaiting earnings results from M&T Bank Corp., State Street Corp., and PNC Financial Services Group today [4]

Core Viewpoint - The Chinese bond market shows a strong performance due to the central bank's recent policy measures, although the upward momentum in bond yields has narrowed in the afternoon session [1] Market Performance - Government bond futures closed mostly higher, with the 30-year main contract down 0.09% at 111.16, while the 10-year main contract rose 0.01% to 108.065 [2] - The interbank bond yield continued to decline slightly, with the 10-year policy bank bond yield down 0.4 basis points to 1.9640% and the 10-year government bond yield down 1.25 basis points to 1.8425% [2] - The China Convertible Bond Index rose 0.47% to 519.31 points, with a trading volume of 989.35 billion yuan [2] Monetary Policy - The central bank implemented a series of measures to support high-quality economic development, including a 0.25 percentage point reduction in the re-lending and rediscount rates, and an increase in the re-lending quota for small and micro enterprises by 500 billion yuan [7] - The central bank indicated that there is still room for further reductions in reserve requirements and interest rates this year [7] Economic Indicators - The latest financial data shows that the social financing scale increased by 35.6 trillion yuan in 2025, with a year-on-year increase of 3.34 trillion yuan [6] - The total amount of RMB loans increased by 16.27 trillion yuan, and RMB deposits increased by 26.41 trillion yuan in 2025 [6] Institutional Insights - According to China International Capital Corporation (CICC), the recent policy measures mark the beginning of a loosening process by the central bank, with potential for further monetary policy tools to be utilized if economic conditions worsen [8] - Huatai Securities noted that the current policy focus is on structural support rather than total volume tools, with expectations for a positive economic outlook at the beginning of the year [8] - CITIC Securities highlighted that the central bank's reduction in various re-lending tool rates is aimed at enhancing bank lending activity and stabilizing credit growth [9]

Core Viewpoint - The Federal Reserve is under pressure to cut interest rates, while the Reserve Bank of Australia is experiencing a different economic dynamic, which has implications for global currency and fixed-income markets [1] Group 1 - The Fed's potential interest rate cuts could influence global financial markets, particularly in currency and fixed-income sectors [1] - The contrasting monetary policy approaches between the Fed and the Reserve Bank of Australia highlight differing economic conditions and challenges faced by each central bank [1]

Core Viewpoint - The People's Bank of China (PBOC) has introduced a series of monetary policies aimed at supporting economic transformation and optimization, which has garnered significant public attention [1][2]. Group 1: Monetary Policy Measures - The PBOC has lowered the re-lending and re-discount rates by 0.25 percentage points and increased the re-lending quota for agricultural and small enterprises by 500 billion yuan [1]. - A new re-lending quota of 1 trillion yuan has been established specifically for private enterprises, along with an increase of 400 billion yuan for technological innovation and transformation re-lending [1][2]. - The policies are designed to direct low-cost central bank funds towards major strategies, key areas, and weak links, particularly focusing on inclusive finance, technological finance, and green finance [2]. Group 2: Impact on Financial Institutions - The reduction in re-lending rates will lower the cost for commercial banks to obtain funds from the central bank, encouraging them to offer loans at lower rates to small and micro enterprises and key sectors [3]. - The increase in re-lending quotas and the establishment of special quotas will enhance local financial institutions' ability to identify risks and price loans for small, technological, and green projects [3]. Group 3: Regional Development and Support - The policies align closely with Nanjing's economic structure and strategic positioning, providing substantial policy benefits to the city [4]. - Nanjing's financial institutions can leverage these policies to provide lower-interest loans to specialized enterprises in advanced fields such as integrated circuits, artificial intelligence, and biomedicine [4][5]. - The focus on carbon reduction support tools will facilitate the transformation of traditional industries in Nanjing, enhancing their green and intelligent upgrades [5]. Group 4: Real Estate Market Adjustments - The minimum down payment ratio for commercial property loans has been reduced to 30%, which is expected to restore market confidence and address high inventory levels in commercial real estate [6]. - This adjustment is seen as a specific measure to support inventory reduction in the commercial property market, improving the overall operating environment in Nanjing's real estate sector [6].