Wipro Q2 results: net income Rs32.0 billion, operating margin up to 16.5 per cent

BENGALURU: Cash is king, and Wipro has plenty of it. The AI-powered technology services and consulting company reported results for the quarter ended September 30, 2026, with operating cash flow at 165.8 per cent of net income, a wider operating margin and a dozen fresh deal wins. The numbers are reported under International Financial Reporting Standards (IFRS) and were announced on October 15, 2026.

Start with the top line. Gross revenue came in at Rs247.5 billion ($2,583.0 million), up 1.1 per cent quarter on quarter and 9.1 per cent year on year. IT services segment revenue was $2,611.5 million, down 0.1 per cent sequentially and up 0.3 per cent year on year. In non-GAAP constant currency, IT services revenue was flat sequentially and up 0.6 per cent year on year.

Margins did the heavy lifting. IT services operating margin for Q2’27 was 16.5 per cent, up 0.5 per cent quarter on quarter and down 0.2 per cent year on year. Net income for the quarter was Rs32.0 billion ($333.3 million at the release’s convenience rate of Rs95.83 to the dollar), down 4.7 per cent sequentially and 1.9 per cent year on year. Earnings per share rose 0.9 per cent quarter on quarter and 4.2 per cent year on year, to Rs3.23 ($0.03).

The cash story is the star. Operating cash flows were Rs53.0 billion ($553.6 million), up 61.3 per cent sequentially and equal to 165.8 per cent of net income. Free cash flow was 152.8 per cent of net income for the quarter. Over six months, operating cash flow stood at 131.1 per cent of net income. Voluntary attrition was 13.8 per cent on a trailing 12-month basis.

Bookings were more modest. Total bookings were $2,595 million, down 22.9 per cent quarter on quarter in constant currency, while large deal bookings were $674 million, down 58.6 per cent. Large deals are lumpy by nature, and the wins listed below show the pipeline is still moving.

Srini Pallia, CEO and managing director, said: “The strategic investments we have been making are beginning to deliver results. They are enhancing our ability to win in new markets, add new clients, and grow existing relationships. At the same time, our consulting-led, AI-powered strategy is helping us create larger transformation opportunities. We see AI as a long-term growth driver that will expand the addressable market for technology and business transformation. We are already seeing its potential reflected in the momentum across our AI-Native Unit and AI offerings portfolio.”

Aparna Iyer, chief financial officer, said: “Our operating margin for the quarter was 16.5 per cent, an expansion of 0.5 per cent sequentially. We have delivered this improvement even while continuing to invest in our business and people. We remain relentless in driving cash flow conversion. Q2 is yet another quarter where our operating cash flow has been robust and stood at 166 per cent of net income.”

The outlook is steady. For the quarter ending December 31, 2026, Wipro expects IT services revenue in the range of $2,571 million to $2,625 million. That translates to sequential guidance of (-)1.5 per cent to (+)0.5 per cent in constant currency terms. The outlook is based on these exchange rates: GBP/USD at 1.35, Euro/USD at 1.15, AUD/USD at 0.71, USD/INR at 95.76 and CAD/USD at 0.72.

The deal wins read like a tour of the global economy. In Q2’27 Wipro won large and strategic deals across industries:

1. One of the largest US-based banking institutions selected Wipro to modernise its mortgage operations through Wipro’s lending platform NetOxygen, powered by Wipro Intelligence™, to simplify lending, automate key tasks and speed up loan closing.
2. A global technology company renewed and expanded its relationship with Wipro to modernise its Enterprise Products organisation, with a unified delivery model, AI-enabled enterprise solutions and AI-powered engineering.
3. A leading US-based health insurance provider appointed Wipro as a strategic partner to transform its provider services organisation, combining provider support services with analytics, workforce planning and quality management.
4. A global biotechnology company selected Wipro to transform and scale its post-market quality assurance operations, with end-to-end complaint management, reporting, multilingual support and an AI-enabled operating model.
5. A leading Asia-based Fortune 500 conglomerate chose Wipro to establish an AI Global Capability Center (GCC) as part of its enterprise AI transformation agenda.
6. A leading global network technology provider selected Wipro to scale its core mobile network services business worldwide, with network implementation, testing and AI-led automation.
7. In a significant win for Wipro’s AI-Native Business & Platform unit, a large North American public services organisation selected Wipro to modernise its enrolment, customer engagement and operational management processes through an AI-native digital operations platform.
8. A global leader in beverages awarded Wipro an expanded engagement to simplify, consolidate and optimise its technology operations, with infrastructure and hybrid cloud services enhanced with Wipro Intelligence™.
9. A Europe-based global provider of industrial products and service solutions renewed its engagement with Wipro for an enterprise-wide business transformation, including a single global enterprise resource planning platform.
10. A leading global life sciences company selected Wipro to establish an AI-powered supply chain intelligence platform, deploying agents through WEGA to improve manufacturing, distribution and inventory decisions.
11. A major energy company in the Middle East selected Wipro to transform its procurement and finance operations through an AI-led operating model.
12. A leading North American financial services institution is modernising its trade exception management capability with Capco, a Wipro company, to create a single view of trade, settlement and position exceptions.

The trophy cabinet is filling up too. Wipro was recognised as a Leader in IDC MarketScape: Worldwide AI-Driven Professional Services for Oil and Gas Companies 2026 Vendor Assessment; ISG Provider Lens® Microsoft AI and Cloud Ecosystem 2026 (US, all quadrants); Avasant’s Healthcare Payor Digital Services, Telecom Digital Services and Utilities Digital Services 2026 RadarView™ reports; Everest Group’s Cybersecurity Services PEAK Matrix® Assessment 2026 (Global); IDC MarketScape: Worldwide Oracle Implementation Services 2026 Vendor Assessment; ISG Provider Lens® Future of Work Services 2026 (US and Europe, all quadrants); and Everest Group’s Quality Engineering Services for AI Applications and Systems, Application Management Services and Integrated Finance and Accounting Services PEAK Matrix® Assessments 2026.

Elsewhere, the IT Products segment posted revenue of Rs1.5 billion ($15.8 million) for the quarter, with a segment result of (-)Rs0.1 billion ((-)$0.8 million). The datasheet shows total headcount of 236,328, net utilisation (excluding trainees) of 83.4 per cent and offshore revenue at 62.2 per cent of services. Customer concentration stands at 4.5 per cent for the top customer, 14.9 per cent for the top five and 23.9 per cent for the top 10. Wipro held an earnings conference call at 7:00 pm Indian Standard Time (9:30 am US Eastern Time) to discuss the quarter.

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading AI-powered technology services and consulting company focused on building innovative solutions that address clients’ most complex digital transformation needs. Leveraging its consulting-led approach and the Wipro Intelligence™ unified suite of AI-powered platforms, solutions and transformative offerings, it helps clients build intelligent and sustainable businesses. With over 230,000 employees and business partners across 65 countries, Wipro says it delivers on the promise of helping its customers, colleagues and communities thrive in an ever-changing world.