Wipro Ltd.Margin Excellence Amid Cautious Growth

Wipro Ltd. reported Q3 FY26 IT Services revenue of $2.64 billion, growing 1.4% sequentially in constant currency terms, with organic growth of 0.6% excluding the HARMAN DTS acquisition contribution of 0.8%.

The company delivered its best operating margin performance in seven quarters at 17.6%, expanding 40 basis points quarter-over-quarter, demonstrating strong operational discipline. Management closed $3.3 billion in total contract value with $871 million in large deals, driven by AI-led transformation, vendor consolidation, and cost optimization themes. Geographic performance showed Americas 1 growing 1.8% and Europe expanding 3.3% sequentially, while sector-wise, Healthcare led with 4.2% growth and BFSI added 2.6%.

However, EMR declined 4.9% due to tariff uncertainties and supply chain disruptions, while Consumer remained challenged by delayed SAP programs. The completed HARMAN DTS acquisition strengthens engineering and AI capabilities. Management provided Q4 guidance of 0-2% sequential revenue growth in constant currency, expressing cautious optimism while navigating mega deal ramp-up delays and sector-specific headwinds. Salary hike decisions are expected within weeks, potentially impacting Q4 margins.