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]

Wipro (NYSE:WIT) Q2 2026 Earnings Call October 16, 2025 09:30 AM ET Company ParticipantsAparna Iyer - CFOAbhishek Jain - VP, Corporate Treasurer, and Head of Investor RelationsSaurabh Govil - President & Chief Human Resources OfficerHari Shetty - Chief Strategist OfficerSrinivas Pallia - CEO and MDConference Call ParticipantsGirish Pai - AnalystSudheer Guntupalli - AnalystVibhor Singhal - AnalystSandeep Shah - AnalystAbhishek Kumar - AnalystRavi Menon - AnalystDipesh Mehta - AnalystKumar Rakesh - AnalystNit ...

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 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]