Core Insights - Wipro Limited reported financial results for the quarter ended December 31, 2025, highlighting broad-based growth driven by AI-enabled services and strategic partnerships [1][2]. Financial Performance - Gross revenue reached Rs 235.6 billion ($2,622.0 million), marking a 3.8% increase quarter-over-quarter (QoQ) and 5.5% year-over-year (YoY) [5]. - IT services segment revenue was $2,635.4 million, reflecting a 1.2% increase QoQ and a 0.2% increase YoY [5]. - Operating margins for IT services improved to 17.6%, an expansion of 0.9% QoQ and 0.1% YoY, representing the best margin performance in recent years [5]. - Net income for the quarter was Rs 31.2 billion ($347.2 million), a decrease of 3.9% QoQ and 7.0% YoY [5]. - Earnings per share (EPS) for the quarter was Rs 2.98 ($0.03), down 3.9% QoQ and 7.2% YoY [5]. - Operating cash flows were Rs 42.6 billion ($474.1 million), an increase of 25.7% QoQ but a decrease of 13.6% YoY, representing 135.4% of net income [5]. Strategic Deal Wins - Wipro secured several large and strategic deals, including a renewal with a global technology leader to enhance trust and safety operations, leveraging AI and machine learning [4]. - A multi-year engagement with a US-based national health insurance organization was established to provide member enrollment and management services using Wipro's PayerAI solution [8]. - Wipro was selected by a prominent North American household furnishings manufacturer to modernize its technology landscape and accelerate innovation through AI [8]. - A leading UK-based facilities management company extended its relationship with Wipro to drive enterprise-wide transformation using Wipro Intelligence [8]. - Wipro engaged with a major European insurance provider to reimagine its infrastructure landscape and accelerate its hybrid cloud journey [8]. Market Outlook - For the quarter ending March 31, 2026, Wipro expects IT services revenue to be in the range of $2,635 million to $2,688 million, indicating a sequential guidance of 0% to 2.0% in constant currency terms [3].

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]