Shares of Wipro were under pressure, falling nearly 10% after the information technology major reported a mixed set of results for the third quarter of FY26, with profit declining due to a one-time cost impact, even as revenue posted single-digit growth.
Q3 FY26 financial performance
Wipro reported a net profit of Rs 3,119 crore in Q3 FY26, down 7% year-on-year from Rs 3,353.8 crore in the same quarter last year. The company said profitability was impacted by a one-time labour code implementation cost of over Rs 300 crore during the quarter.
Revenue from operations increased 5.5% YoY to Rs 23,556 crore, compared with Rs 22,318.8 crore in Q3 FY25. The IT services segment revenue stood at $2,635.4 million, reflecting a 1.2% quarter-on-quarter increase and a 0.2% YoY rise. Total deal bookings during the quarter came in at $3.3 billion.
Management commentary and demand outlook
Commenting on the results, Srini Pallia, CEO and Managing Director, said growth was broad-based during the quarter, which also marked two milestones for the company—Wipro completing 80 years and 25 years since its stock market listing. He highlighted good traction in the UK and Western Europe, strong growth in BFSI driven by ramp-ups and new deals, while Capco revenue was impacted by furloughs.
Pallia added that Wipro’s deal pipeline remains strong, with AI increasingly becoming central to client engagements as enterprises reimagine applications, processes, and customer experience. He noted that four out of five sectors performed well during the quarter, with visible opportunities in technology, telecom, healthcare, and life sciences, while discretionary spending continues to be monitored closely.
Margins, cash flows, and dividend
Wipro’s IT services operating margin improved to 17.6%, expanding both sequentially and year-on-year, which the company described as its best margin performance in the last few years. The firm also reported strong cash conversion, with operating cash flows at 135% of net income.
The board declared an interim dividend of Rs 6 per share, taking the total payout for the year to $1.3 billion, according to CFO Aparna Iyer.
Guidance and workforce update
For Q4 FY26, Wipro guided IT services revenue in the range of $2,635 million to $2,688 million, implying 0% to 2% sequential growth in constant currency terms. As of December 31, 2025, Wipro had 242,021 employees, with a net addition of 6,529 during the quarter. Attrition stood at 14.2%, while utilisation was reported at 83.1%.
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