Wipro Q3 FY26 Results: Profit Dips 3.9% QoQ, Margin Expands to 17.6%

Mumbai: Wipro Limited (NYSE: WIT), a global leader in AI-powered technology services, announced its financial results for the quarter ended December 31, 2025, delivering a performance marked by expanding profitability but subdued revenue growth.

The company reported a sequential expansion in IT services operating margin to 17.6% — its best in several years — even as revenue growth in constant currency terms remained modest at 1.4%.

Financial Snapshot: Q3 FY26 (YoY & QoQ)

Gross Revenue: ₹235.6 billion ($2.62 billion), up 3.8% QoQ, up 5.5% YoY.
IT Services Revenue (CC): $2.64 billion, up 1.4% QoQ, down 1.2% YoY.
Operating Margin: 17.6%, an expansion of 0.9% QoQ and 0.1% YoY.
Net Income: ₹31.2 billion ($347.2 million), down 3.9% QoQ and 7.0% YoY.
Adjusted Net Income (ex-labour code impact): ₹33.6 billion ($374.3 million), up 3.6% QoQ.
Earnings Per Share (EPS): ₹2.98 ($0.03), down 3.9% QoQ.
Operating Cash Flow: Strong at 135.4% of net income.
Interim Dividend: ₹6 per share declared, bringing total annual payout to $1.3 billion.
Voluntary Attrition (TTM): 14.2%, showing continued stabilization.

Management Commentary

Srini Pallia, CEO and Managing Director, emphasized the strategic role of AI: *“In Q3, we delivered broad-based growth in line with our expectations. As AI becomes a strategic imperative, Wipro Intelligence is emerging as a differentiator and contributed to several wins this quarter.”* He highlighted scaled adoption of AI platforms WINGS and WEGA.

Aparna Iyer, Chief Financial Officer, focused on financial discipline: *“Our IT services operating margins at 17.6% expanded both sequentially and on a year-on-year basis. This is our best margin performance in the last few years. Our continued focus on execution rigour also reflects in our strong operating cash flow.”*

Key Highlights and Deal Wins

Deal Bookings: Total bookings stood at $3.34 billion, with large deals (≥$30 million) at $871 million.
AI-Powered Engagements: The quarter saw significant renewals and new wins centered on Wipro Intelligence™. Notable deals include a decade-long renewal with a global tech leader for AI-driven trust and safety operations, and a multi-year expansion with a major US health insurer using Wipro's proprietary PayerAI solution.
Sector Diversity: Wins spanned technology, healthcare, insurance, manufacturing, banking, airlines, and telecommunications across North America, Europe, and APMEA.

Also Read: Tata Technologies Q3 Results: Revenue Up 3.2% QoQ, Forecasts Over 10% Growth in Q4

Outlook for Q4 FY26

Wipro provided a cautious revenue guidance for its IT Services segment in the range of $2,635 million to $2,688 million for the quarter ending March 31, 2026. This translates to a sequential constant currency growth guidance of 0% to 2.0%.

Analyst Recognition

The company continued to secure leadership positions in industry reports, being named a Leader in 12 analyst assessments including Gartner Magic Quadrants for Service Integration, Data Center Outsourcing, and Digital Workplace Services.

Bottom Line

Wipro's Q3 reflects a company successfully navigating a challenging demand environment through rigorous execution, cost optimization, and a strategic bet on AI. While top-line growth remains a work in progress, the expansion in margins and robust cash generation underscore improving operational health. The focus on Wipro Intelligence as a unified AI suite appears to be resonating in the market, as evidenced by strategic deal wins. All eyes will now be on whether this foundation can translate into stronger revenue acceleration in the coming quarters.