Wipro(US:WIT)2026-01-16 12:02Financial 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]