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View Promises →Wipro Limited — Q2 FY26
Wipro's Q2 FY26 IT services revenue was $2.6B, with sequential growth of 0.3% CC but a YoY decline of 2.6%.
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Wipro's Q2 FY26 IT services revenue was $2.6B, with sequential growth of 0.3% CC but a YoY decline of 2.6%. Adjusted operating margin improved 40bps YoY to 17.2%, though reported margin was 16.7% due to a one-off bad debt charge. Total contract value was $4.7B with 13 large deals, including two mega renewals. BFSI and healthcare showed resilience, while consumer and manufacturing remained weak due to tariff uncertainty. Management guided Q3 revenue growth of -0.5% to +1.5% CC, signaling cautious optimism. Key risks include execution on large deal ramp-ups, persistent discretionary spending slowdown, and margin pressure from growth investments.
विप्रो की दूसरी तिमाही (वित्त वर्ष 2026) में आईटी सेवाओं से कमाई 2.6 अरब डॉलर रही। पिछली तिमाही के मुकाबले यह 0.3% बढ़ी, लेकिन पिछले साल की तुलना में 2.6% घट गई। कंपनी का मुनाफा (ऑपरेटिंग मार्जिन) बेहतर हुआ और 17.2% पर पहुंच गया, हालांकि एक बार के खराब कर्ज के चलते रिपोर्टेड मार्जिन 16.7% रहा। कुल अनुबंध मूल्य 4.7 अरब डॉलर था, जिसमें 13 बड़े सौदे शामिल हैं। बैंकिंग और स्वास्थ्य सेवा मजबूत रहे, जबकि उपभोक्ता और विनिर्माण कमजोर रहे। अगली तिमाही में कमाई में 0.5% गिरावट से 1.5% बढ़ोतरी का अनुमान है। मुख्य जोखिमों में बड़े सौदों को पूरा करना, खर्च में कमी और निवेश से मुनाफे पर दबाव शामिल है।
Promises0 met · 1 missedRisks4 trackedTranscriptfull text
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Risks
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Risk Intelligence
Execution Risk on Large Deal Ramp-Up
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Read Transcript →Quarter Snapshot
Total Contract Value (TCV)
$4.7B
+90.5% YoY
Large deals grew significantly YoY; two mega deals (renewals) included.
Large Deals Signed
13
flat QoQ
Nine of 13 large deals were with top 100 clients, deepening relationships.
Americas 1 Revenue Growth (CC)
5% YoY
+5% YoY
Driven by healthcare, technology, and communications sectors.
Europe Revenue Growth (CC)
1.4% QoQ
+1.4% QoQ
First sequential growth in several quarters, led by BFSI; Phoenix deal to ramp in Q3.
What Changed vs Last Quarter
NEW
Adjusted Operating Margin Target
Management intends to maintain adjusted operating margin in a narrow band around 17.2%.
NEW
Harman Digital Transformation Solutions Acquisition
Expected to close during Q3; revenue from acquisition not included in guidance.
UPDATED
Q3 FY26 IT Services Revenue Guidance
Sequential constant currency revenue growth of -0.5% to +1.5%.
DROPPED
H2 FY26 performance expected to be better
Management expects stronger revenue growth in second half due to large deal ramp-ups and strong pipeline.
DROPPED
Capital allocation: minimum 70% net income payout over 3 years
Interim dividend of INR 5/share declared; endeavor to pay dividends twice a year (June and Q3 results).
NEW RISK
Execution Risk on Large Deal Ramp-Up
Large deals, especially mega renewals, may take several quarters to ramp, delaying revenue conversion.
NEW RISK
Discretionary Spending Slowdown
Management noted no dramatic uptick in discretionary spending; clarity expected only after client budgeting in January.
NEW RISK
Tariff Uncertainty Impact on Key Sectors
Consumer, energy, and manufacturing clients are reevaluating supply chains due to tariffs, affecting demand.
RISK GONE
Delayed revenue conversion from large deals
Large deals take 6-8 quarters to fully ramp; Q1 revenue growth was at an 8-quarter low despite record bookings.
RISK GONE
Persistent macro uncertainty in Europe and consumer sectors
Europe revenue declined 11.6% YoY; consumer sector declined 5% YoY due to tariff impacts and cautious spending.
RISK GONE
Attrition creeping up in niche AI skills
Attrition has been in a narrow band but pockets of higher attrition for AI talent; premium salaries may impact costs.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q1 FY26, Q4 FY25
Large deals take 6-8 quarters to fully ramp; Q1 revenue growth was at an 8-quarter low despite record bookings.
Mentioned in Q1 FY25, Q2 FY25, Q4 FY25
CFO stated endeavor to maintain operating margins in a narrow band in coming quarters, despite revenue headwinds.
Mentioned in Q1 FY25, Q2 FY25, Q3 FY25
Management expects IT services revenue to be between $2.602B and $2.655B in constant currency terms for Q4.
Mentioned in Q2 FY25, Q3 FY25
Energy, manufacturing, and resources declined 8.7% YoY; consumer grew only 0.4% YoY. These segments represent ~36-38% of revenue and may hinder consistent growth.
Mentioned in Q1 FY25, Q3 FY25
Europe degrew 4.6% YoY and APMEA degrew 8% YoY. Management acknowledged challenges in these regions despite pipeline rebuilding.
Fast read
Guidance and risk preview
Sequential constant currency revenue growth of -0.5% to +1.5%.
Large deals, especially mega renewals, may take several quarters to ramp, delaying revenue conversion.
View Risks →