Wipro sees sequential growth in Q2 FY'26 IT services revenue

Wipro Limited reported IT services revenue of $2.6 bn for Q2 FY'26, marking a sequential growth of 0.3% in constant currency and 0.7% in reported currency. The adjusted operating margin for the quarter stood at 17.2%, an improvement of 0.4% year-on-year, within the previously indicated narrow band. The company noted a one-off charge due to a client bankruptcy event, impacting reported margins. Total contract value closed at $4.7 bn, including 13 large deals, with two mega deals in Healthcare and BFSI sectors.

Looking ahead to Q3, Wipro projects sequential IT services revenue growth between -0.5% and +1.5% in constant currency, with management emphasizing converting backlog into revenue while maintaining operational discipline. Americas 1, Europe, and APMEA regions showed sequential growth, while Americas 2 experienced a decline. BFSI demonstrated sequential growth of 2.2%, with strong momentum driven by Europe and APMEA.

The company's net income and EPS grew 1% year-on-year in Q2. Operating cash flows remained robust at 104% of net income, with gross cash and investments totaling $6 bn. Wipro Intelligence, a new AI-powered platform suite, was introduced to scale client operations and drive innovation. Headcount increased, and the company plans to continue hiring laterally and from campuses based on demand.