Wipro reported steady performance in its IT services business for the quarter ended December 31, 2025, supported by broad-based growth, improved margins, and increasing adoption of AI-led solutions.
The IT services segment recorded revenue of $2,635.4 million, reflecting an increase of 1.2 percent quarter-on-quarter and 0.2 percent year-on-year. In constant currency terms, revenue grew 1.4 percent sequentially, indicating stable demand across key markets despite a cautious macroeconomic environment.
Total bookings for the quarter stood at $3,335 million, representing a decline of 5.7 percent year-on-year. Large deal bookings came in at $871 million, down 8.4 percent compared to the same period last year, pointing to elongated deal cycles and continued client scrutiny on technology spending.
Wipro reported a diversified business mix and steady global footprint for the quarter ended December 31, 2025, underpinned by strength across key industry segments and geographies.
Banking, Financial Services and Insurance remained Wipro’s largest vertical, contributing 34.6 percent of total revenue, reflecting continued demand for digital transformation, core modernization, and risk and compliance solutions. The Consumer segment accounted for 18.2 percent, while Energy, Manufacturing and Resources contributed 16.3 percent. Technology and Communications represented 16.0 percent of revenue, and the Health sector contributed 14.9 percent, highlighting balanced growth across regulated and innovation-led industries.
From a geographic perspective, the Americas continued to be Wipro’s most significant market. Americas 1 contributed 33.2 percent of revenue, followed by Americas 2 at 29.0 percent. Europe accounted for 26.7 percent, while APMEA contributed 11.1 percent, underscoring Wipro’s broad-based global delivery and client presence.
Wipro’s client portfolio remained strong across large and mid-sized enterprises. The company reported 16 customers with annual revenue exceeding $100 million, 31 clients above $75 million, and 45 clients above $50 million on a trailing twelve-month basis. The long tail of clients continued to expand, with 722 customers generating over $1 million in annual revenue, indicating sustained deal wins and account mining.
The total employee headcount stood at 242,021 at the end of the quarter, supporting Wipro’s large-scale global operations and ongoing investments in digital, cloud, AI, and engineering capabilities.
Wipro delivered a strong improvement in profitability. IT services operating margin for Q3 FY26 rose to 17.6 percent, marking an expansion of 0.9 percent sequentially and 0.1 percent on a year-on-year basis. This was the company’s best margin performance in the last few years, driven by execution discipline, cost optimization, and improved utilization. Net income for the quarter was $347.2 million, down 3.9 percent quarter-on-quarter and 7.0 percent year-on-year.
Operating efficiency remained strong, with operating cash flow reaching 135 percent of net income during the quarter. Voluntary attrition moderated to 14.2 percent on a trailing twelve-month basis, reflecting improved employee retention.
Looking ahead, Wipro expects revenue from its IT services business to be in the range of $2,635 million to $2,688 million for the quarter ending March 31, 2026, indicating cautious optimism amid a gradually improving demand environment.
Commenting on the performance, Srini Pallia, CEO and Managing Director of Wipro, said the company delivered growth in line with expectations in the third quarter. He highlighted that as artificial intelligence becomes a strategic imperative for enterprises, Wipro Intelligence is emerging as a key differentiator. During the quarter, Wipro saw increased adoption of AI-enabled platforms, scaled AI-led delivery through WINGS and WEGA, and expanded its global innovation network.
Aparna Iyer, Chief Financial Officer, noted that the expansion in operating margins reflects strong execution rigor. She added that the Board has declared an interim dividend of ₹6 per share, taking the total payout for the year to $1.3 billion.
Industry analysts also viewed the quarter as stable. Shubham Rathore, Principal Analyst at Gartner, said Wipro’s consistent revenue growth, improved margins, and strong cash flows underline the company’s focus on resilience and disciplined execution. He added that Gartner research points to robust growth in enterprise IT and AI spending through 2026, with organizations prioritizing scalable and outcome-driven solutions. According to him, Wipro’s continued investments in automation, cloud, and AI-powered platforms position it well to support clients in modernizing operations and achieving greater business agility.
RAJANI BABURAJAN
