Wipro Q3FY26 Results: Revenue Beats Estimates, Profit Declines 7%; Company Guides 0–2% Growth for Q4
Bengaluru: India’s fourth-largest IT services company, Wipro Ltd, on Thursday announced its financial results for the December quarter (Q3FY26), reporting better-than-expected revenue growth but a decline in net profit.
Revenue Performance Exceeds Expectations
Wipro reported Q3FY26 revenue of ₹23,555 crore, surpassing analysts’ consensus estimate of ₹23,151 crore. This marks a 5.5% year-on-year (YoY) increase compared to ₹22,318 crore in the same quarter last year.
On a sequential basis, revenue rose 4% from ₹22,697 crore in Q2FY26, indicating steady recovery in demand.
The IT services segment, which forms the bulk of Wipro’s business, generated revenue of ₹23,378 crore, up 5% YoY. In constant currency terms, IT services revenue grew 1.4% quarter-on-quarter, though it declined 1.2% YoY.
Net Profit Declines Despite Top-Line Growth
Despite the rise in revenue, net profit attributable to equity shareholders fell 7.11% YoY to ₹3,119 crore, compared to ₹3,358 crore in the year-ago quarter. The profit figure also came in below market expectations.
The company said profits were impacted by a one-time charge of ₹300 crore, related to adjustments under India’s new labour codes.
Excluding this one-time impact, adjusted net profit stood at ₹3,360 crore, reflecting:
- 3.6% quarter-on-quarter growth
- 0.3% year-on-year increase
Earnings per share (EPS) for the quarter came in at ₹3.21, up 3.5% QoQ and flat on a YoY basis.
Margin Expansion and Strong Cash Flow
Wipro reported IT services operating margins of 17.6%, showing improvement both sequentially and year-on-year.
Commenting on the performance, Aparna Iyer, Chief Financial Officer, said the company delivered its best margin performance in the last few years, supported by strong execution and cost discipline. Operating cash flow stood at 135% of net income during the quarter.
BFSI Segment Shows Demand Recovery
The banking and financial services (BFSI) segment, Wipro’s largest vertical contributing over one-third of total revenue, saw a 1.6% rise in revenue, indicating early signs of demand recovery.
Bookings Decline Sequentially
Wipro’s total deal bookings for the quarter stood at $3.33 billion, down from $4.69 billion in Q2FY26. On a YoY basis, bookings declined 5% in constant currency terms.
Large deal bookings came in at $871 million, marking an 8.4% YoY decline.
CEO Highlights AI-Led Growth Strategy
Srini Pallia, CEO and Managing Director, said the company delivered broad-based growth in line with expectations, with artificial intelligence emerging as a key growth driver.
He highlighted increased adoption of AI-enabled platforms, expansion of AI-led delivery through WINGS and WEGA, and growth in Wipro’s global innovation network.
Q4FY26 Outlook
For the March quarter, Wipro expects sequential revenue growth of 0% to 2%, translating to a revenue range of $2.64 billion to $2.69 billion.
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