Wipro ADRs fall 6% as Q3 profit declines, deal activity goes down

Wipro ADRs fell nearly 6% on the New York Stock Exchange after the IT services firm reported its December-quarter results, with investors reacting to weaker year-on-year profit growth and subdued deal momentum despite improving margins and strong cash generation.

The US-listed American Depositary Receipts slipped after Wipro posted a 7% YoY decline in consolidated net profit to Rs 3,119 crore for the third quarter. Revenue, however, showed steady traction, rising 6% YoY to Rs 23,556 crore, supported by sequential growth in its core IT services business.

Adjusted for the one-time impact related to labour code changes, net income stood at Rs 3,360 crore, reflecting a 3.6% sequential increase and 0.3% growth over last year, indicating that underlying profitability remained stable despite demand softness in certain markets.


The company's IT services segment revenue came in at $2.64 billion, up 1.2% quarter-on-quarter and marginally higher by 0.2% YoY. In constant currency terms, revenue rose 1.4% sequentially but declined 1.2% YoY, pointing to continued pressure from pricing and slower discretionary spending, particularly in developed markets.

Operationally, Wipro delivered a strong margin performance. IT services operating margin expanded to 17.6%, marking a 90-basis-point improvement sequentially and a 10-basis-point rise YoY. The improvement was driven by tighter cost controls, better utilisation and execution discipline, which partly offset muted topline growth.

Deal activity remained a key concern for investors. Total contract bookings for the quarter stood at $3.3 billion, down 5.7% YoY in constant currency terms. Large deal wins were weaker, with bookings at $871 million, reflecting an 8% YoY decline, highlighting cautious client spending and elongated decision cycles.

The board declared an interim dividend of Rs 6 per share, with January 27 fixed as the record date. The dividend is scheduled to be paid on or before February 14, reinforcing the company’s commitment to shareholder returns even amid a mixed demand environment.

Management maintained a cautious but steady outlook. For the March 2026 quarter, Wipro guided IT services revenue in the range of $2.64 billion to $2.69 billion, implying flat to 2% sequential growth in constant currency terms.

Chief Executive Officer Srini Pallia said the company delivered broad-based growth in line with internal expectations, noting that artificial intelligence is increasingly emerging as a differentiator. He highlighted rising adoption of AI-enabled platforms, scaling of AI-led delivery through internal frameworks, and expansion of Wipro’s global innovation network.