Wipro(US:WIT)2026-01-16 14:32Financial Data and Key Metrics Changes - IT services revenue for Q3 FY2026 was $2.64 billion, growing 1.4% sequentially in constant currency and 1.2% in reported currency [5][11] - Operating margin expanded to 17.6%, an increase of 0.4% quarter-on-quarter and 0.1% year-on-year [7][11] - Adjusted net income for the quarter was INR 33.6 billion, with adjusted EPS at INR 3.21, reflecting a 3.5% increase quarter-on-quarter and flat year-on-year [12][11] Business Line Data and Key Metrics Changes - Americas 1 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 saw 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] Market Data and Key Metrics Changes - The Americas 1 market showed strong performance in healthcare, consumer, and LATAM, while Europe experienced growth due to 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 continuing to show strong traction [7][12] Company Strategy and Development Direction - The company is positioning itself for an AI-first world, focusing on AI-led transformation and cost optimization [4][5] - Wipro Intelligence is a unified approach to delivering AI-powered transformation across industries, with three strategic pillars: industry platforms, delivery platforms, and the Wipro Innovation Network [7][8] - The acquisition of Harman DTS is expected to enhance engineering capabilities and open new markets [10] Management's Comments on Operating Environment and Future Outlook - Management noted that organizations are reshaping priorities due to AI's influence, with a focus on cost optimization and vendor consolidation [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] 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, and Resources (EMR) vertical - Management acknowledged the impact of macroeconomic uncertainty and supply chain issues but noted a strong pipeline in the sector [20][23] Question: Delays in ramp-ups affecting growth - Management indicated that some deals will take time to ramp up, but they remain confident in future growth [19][18] Question: Outlook for consumer vertical - Management highlighted tariff impacts and a large SAP program on hold, but some earlier wins are ramping up [29][30] Question: Impact of Harman DTS acquisition on revenue - Management expects the acquisition to enhance capabilities, particularly in tech and communications sectors [42] Question: Future cash distribution strategies - Management confirmed that buyback remains an option, with discussions ongoing regarding the timing and conditions [74][75]