The Investor
15 Oct 2026, 14:58
Wipro Rises 4.2% as Margin Expansion and Strong Cash Flow Offset Weak Bookings
Wipro (NYSE: WIT) shares rose about 4.2% after the company reported improved operating margins and strong cash conversion for the quarter ended September 30, despite limited IT services growth and a sharp decline in bookings.
Gross revenue increased 9.1% year over year to ₹247.5 billion, or about $2.58 billion. IT Services revenue was $2.61 billion, up just 0.3% year over year and down 0.1% sequentially. On a constant-currency basis, IT Services revenue increased 0.6% year over year and was flat sequentiall
Profitability improved sequentially, with IT Services operating margin expanding 50 basis points to 16.5%. EPS increased 4.2% year over year to ₹3.23, while operating cash flow surged 61.3% sequentially to ₹53.0 billion and reached nearly 166% of net income.
Bookings were the major weak point. Total bookings fell 22.9% sequentially in constant currency to $2.60 billion, while large-deal bookings dropped 58.6% to $674 million.
For the December quarter, Wipro expects IT Services revenue of $2.571 billion to $2.625 billion, equivalent to sequential constant-currency growth of between -1.5% and +0.5%, pointing to continued muted near-term revenue momentum.
Management nevertheless highlighted increasing opportunities around its consulting-led, AI-powered strategy, with several new engagements involving AI-enabled operations, enterprise platforms and automation across banking, healthcare, technology and other industries.
The 4.2% gain appears to reflect investor focus on better margins, strong cash conversion and signs of progress in Wipro’s AI-focused strategy, despite weak bookings and a relatively subdued near-term revenue outlook.
Wipro (NYSE: WIT) shares rose about 4.2% after the company reported improved operating margins and strong cash conversion for the quarter ended September 30, despite limited IT services growth and a sharp decline in bookings.
Gross revenue increased 9.1% year over year to ₹247.5 billion, or about $2.58 billion. IT Services revenue was $2.61 billion, up just 0.3% year over year and down 0.1% sequentially. On a constant-currency basis, IT Services revenue increased 0.6% year over year and was flat sequentiall
Profitability improved sequentially, with IT Services operating margin expanding 50 basis points to 16.5%. EPS increased 4.2% year over year to ₹3.23, while operating cash flow surged 61.3% sequentially to ₹53.0 billion and reached nearly 166% of net income.
Bookings were the major weak point. Total bookings fell 22.9% sequentially in constant currency to $2.60 billion, while large-deal bookings dropped 58.6% to $674 million.
For the December quarter, Wipro expects IT Services revenue of $2.571 billion to $2.625 billion, equivalent to sequential constant-currency growth of between -1.5% and +0.5%, pointing to continued muted near-term revenue momentum.
Management nevertheless highlighted increasing opportunities around its consulting-led, AI-powered strategy, with several new engagements involving AI-enabled operations, enterprise platforms and automation across banking, healthcare, technology and other industries.
The 4.2% gain appears to reflect investor focus on better margins, strong cash conversion and signs of progress in Wipro’s AI-focused strategy, despite weak bookings and a relatively subdued near-term revenue outlook.
