Wipro reported second-quarter earnings per share (EPS) of $0.03, missing the analyst consensus estimate of $0.04 by 25%. The company’s quarterly sales reached $2.583 billion, beating the consensus estimate of $2.570 billion by 0.51% and marking a 1.02% increase over the same period last year.

In local currency terms, Wipro posted revenue of ₹247.53 billion, a sequential increase from ₹244.79 billion in the preceding quarter. The topline slightly exceeded the market estimate of ₹247 billion. Profitability metrics showed improvement alongside this growth. Earnings before interest and tax (EBIT) rose to ₹39.9 billion from ₹38.3 billion quarter-on-quarter. Consequently, the EBIT margin expanded to 16.14% from 15.64% in the previous quarter. The company reported an IT services operating margin of 16.5%, up by 0.5% sequentially.

However, consolidated net profit declined sequentially to ₹32 billion from ₹33.5 billion. This figure fell short of the consensus estimate of ₹32.5 billion. Earnings per share (EPS) in INR stood at ₹3.23, an increase of 0.9% QoQ and 4.2% YoY.

Financial Performance Snapshot

Segment and Operational Highlights

IT services segment revenue was at $2,611.5 million, a decrease of 0.1% QoQ and an increase of 0.3% YoY. On a non-GAAP constant currency basis, IT services segment revenue was flat sequentially and increased 0.6% YoY. Total bookings were at $2,595 million, down by 22.9% QoQ in constant currency. Large deal bookings were at $674 million, a decrease of 58.6% QoQ in constant currency.

Operating cash flows were robust at ₹53.0 billion ($553.6 million), an increase of 61.3% QoQ and standing at 165.8% of net income for the quarter. Voluntary attrition was at 13.8% on a trailing 12-month basis. The company announced guidance for the quarter ending December 31, 2026, expecting IT services revenue in the range of $2,571 million to $2,625 million.

Strategic Deal Wins and AI Momentum

CEO Srini Pallia highlighted that strategic investments are enhancing Wipro's ability to win in new markets, with AI serving as a long-term growth driver. The company secured several large deals in Q2FY27, including:

• A major US banking institution selected Wipro to modernize mortgage operations using its NetOxygen lending platform.
• A global technology company renewed its engagement to modernize enterprise products and enhance employee experience through AI-enabled solutions.
• A leading US health insurance provider appointed Wipro to transform provider services using analytics and operational excellence methodologies.
• A global biotechnology company engaged Wipro to scale post-market quality assurance operations with an AI-enabled operating model.
• An Asia-based Fortune 500 conglomerate selected Wipro to establish an AI Global Capability Center (GCC).

These wins underscore the momentum in Wipro's AI-Native Unit and consulting-led strategy, aiming to expand the addressable market for technology transformation.

Demand Conditions and Sector Trends

Company executives reported that demand conditions remain mostly stable this quarter. Growth in deal wins and pipeline was highlighted from mid-market firms. Specific sector trends indicated growth in consumer goods, travel, and transportation sectors. However, client-specific issues and softness in healthcare impacted certain parts of Americas. The US healthcare segment was specifically impacted by policy changes.

A company executive stated that mid-market margins are similar to larger client deals. Looking ahead, the executive noted that Q3 will experience weakness in healthcare, but this factor is already included in the current forecast.

Capital Allocation and Buyback Update

During the six months ended September 30, 2026, Wipro concluded its equity share buyback program. The Board had approved the buyback of up to 600,000,000 equity shares at ₹250 per share on April 16, 2026. The settlement was completed on June 24, 2026, resulting in a total cash outflow of ₹150,508 million (including transaction costs).

Consequent to this buyback, the paid-up equity share capital reduced by ₹1,200 million. An amount of ₹8,457 million was utilized from securities premium, and ₹142,051 million from retained earnings. A capital redemption reserve of ₹1,200 million was created as an apportionment from retained earnings.

Investor Relations Update

On October 15, 2026, Wipro informed stock exchanges that the audio and video recording of the earnings press conference held on the same date is available on the Company's website. This follows the standard protocol for analyst and institutional investor meetings, ensuring transparency regarding the management's commentary on quarterly performance and future outlook.

Audit Opinion and Compliance

Deloitte Haskins & Sells LLP issued independent auditor’s reports on both the Standalone and Consolidated Financial Results for the three and six months ended September 30, 2026. The auditors opined that the financial statements are presented in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and give a true and fair view in conformity with Ind AS 34 "Interim Financial Reporting" and IAS 34 as issued by the IASB. The reports were signed by partner Anand Subramanian on October 15, 2026, in Bengaluru, confirming no material misstatements or going concern uncertainties were identified during the audit.

What the Numbers Show

The data reveals a divergence between top-line performance and bottom-line results. While revenue beat consensus estimates and margins expanded by 50 basis points, net profit contracted by ₹1.5 billion sequentially. This suggests that non-operating factors or below-the-line items likely impacted the final profit figure, despite the stronger operational efficiency indicated by the rising EBIT margin. Additionally, the significant drop in large deal bookings (-58.6% QoQ) contrasts with the stable sequential revenue, indicating potential pressure on future growth momentum despite current operational stability. The new commentary on stable overall demand, driven by mid-market and consumer sectors, partially offsets the headwinds from US healthcare policy changes, suggesting a mixed but resilient demand environment. The clarification that mid-market margins match large deals suggests pricing discipline is holding across client segments, even as large deal volumes decline.

Wipro stated that no permanent labor certification was filed in the past three years. The company also reported fewer deal wins during the current quarter.

Deal Win Status

The company noted a reduction in deal wins. This decline is attributed to some contracts not being finalized within the current quarter.