Wipro Ltd

Wipro Limited's Q2 FY27 earnings call on October 15, 2026, highlighted mixed performance. IT services revenue remained flat sequentially at $2.61 billion, up 0.6% year-on-year in constant currency. Operating margin improved to 16.5%, up 0.5% sequentially, driven by operational efficiencies and rupee depreciation, though investments in growth areas created near-term margin pressures. Strategic market units (SMUs) showed varied results: Americas 1 declined due to client-specific issues and healthcare softness, while Americas 2, Europe, and APMEA grew sequentially. BFSI showed resilience with 1% sequential growth, aided by consulting-led AI transformation deals, though some client-specific challenges persisted. The Consumer sector grew due to CPG and travel wins, while Energy, Manufacturing, and Resources (EMR) saw traction from previous deals. Healthcare in the US faced policy-driven challenges and cost pressures, though new outsourcing opportunities emerged. The company closed $2.6 billion in contract value, including nine large deals, with strong pipeline for Q3. Guidance for Q3 indicated a sequential IT services revenue decline of 1.5% to 0.5% in constant currency, impacted by seasonal furloughs and client-specific issues. Management emphasized AI-driven growth, with investments in AI-native units, data centers, and industry-specific platforms. While the company remains optimistic about AI's long-term impact, near-term challenges like deflationary pressures and client consolidation were noted. The CFO noted a 5% sequential decline in net income due to reduced investable surplus from a completed buyback, though EPS increased slightly. The company reiterated its focus on margin improvement through operational efficiencies while balancing growth investments.

The summary reflects both positive aspects like AI-driven growth and strong pipeline, as well as challenges such as client-specific issues, deflationary pressures, and sequential revenue declines.