Wipro(US:WIT)2026-01-16 14:32Financial Data and Key Metrics Changes - The IT services revenue for Q3 FY26 was $2.64 billion, reflecting a sequential growth of 1.4% in constant currency and 1.2% in reported currency [5][11] - Year-on-year revenue growth was flat at 0.2% in reported terms but declined by 1.2% in constant currency terms [11] - Operating margin improved to 17.6%, an increase of 40 basis points quarter-on-quarter and 10 basis points year-on-year [11][12] - Adjusted net income for the quarter was INR 33.6 billion, with adjusted EPS at INR 3.21, marking a 3.5% increase quarter-on-quarter and flat year-on-year [12] Business Line Data and Key Metrics Changes - Americas 1 grew 1.8% sequentially and 2.8% year-on-year, while Americas 2 saw a decline of 0.8% sequentially and 5.2% year-on-year [12] - Europe experienced a sequential growth of 3.3% but a year-on-year decline of 4.6% [12] - APMEA grew 1.7% sequentially and 6.6% year-on-year, with BFSI growing 2.6% sequentially and 0.4% year-on-year [12][13] - The consumer sector grew 0.7% sequentially but declined 5.7% year-on-year [12] Market Data and Key Metrics Changes - The Americas 1 market showed strong performance in healthcare, consumer, and LATAM, while Europe saw growth driven by a ramp-up of a previously announced mega deal [6][12] - APMEA's growth was led by India, the Middle East, and Southeast Asia, with BFSI showing strong traction [7] Company Strategy and Development Direction - The company is positioning itself for an AI-first world, focusing on AI-led transformation, cost optimization, and vendor consolidation [4][5] - Wipro Intelligence is a unified approach to delivering AI-powered transformation across industries, anchored on industry platforms, delivery platforms, and an innovation network [7][8] - The acquisition of Harman DTS is expected to enhance engineering capabilities and accelerate AI-driven product innovation [10] Management's Comments on Operating Environment and Future Outlook - Management noted that organizations are reshaping priorities due to AI's influence on business models and operations [4] - The guidance for Q4 projects IT services revenue growth of 0%-2% in constant currency, impacted by fewer working days and delayed ramp-ups [10][14] - Management expressed confidence in the deal pipeline, particularly in energy and manufacturing sectors, despite current macroeconomic uncertainties [20][23] 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 a gross cash position of $6.5 billion, indicating strong liquidity [14] Q&A Session Summary Question: Concerns about revenue loss in energy manufacturing resources - Management acknowledged a $24 million revenue loss in the EMR vertical, attributing it to macroeconomic uncertainties and supply chain issues, but noted a strong deal pipeline [17][20] Question: Delays in ramp-ups impacting growth - Management indicated that some deals would take a few quarters to ramp up, with confidence in future growth as these deals convert [18][19] Question: Outlook for the consumer vertical - Management highlighted tariff impacts and a large SAP program on hold, but noted that some earlier wins are ramping up [28][29] Question: Impact of Harman DTS acquisition on growth - Management stated that the acquisition would enhance capabilities in tech and communications sectors, improving win rates [41][42] Question: Future of buybacks and excess cash - Management confirmed that buybacks remain an option for returning cash to shareholders, contingent on market conditions and statutory considerations [74][75]