Wipro Q3 Profit Falls Short of Estimates Amid One-Time Charges
Restructuring costs and labour code provisions drag Q3 profits, but AI-led deals and Harman acquisition support growth outlook
Bengaluru, Jan 17: Wipro, India’s fourth-largest IT outsourcing company, reported a miss on third quarter profit estimates, impacted by one time charges and restructuring costs related to the new labour code. The Bengaluru based firm, however, marginally raised its revenue guidance for the March quarter.
The company posted a net profit of ₹3,119 crore for Q3 FY26, down 7% year on year (YoY) and 4% quarter on quarter (QoQ). Analysts had expected a 4% sequential rise in net profit and a 5.1% increase in revenue.
Impact of One-Time Charges
Wipro incurred ₹302 crore in labour code-related charges and ₹263 crore in restructuring costs following the Capco acquisition and changes in its European operations. Despite these hits, the company’s operating margin rose to 17.6% up 40 basis points QoQ excluding one time provisions.
Revenue and Sector Performance
Wipro reported Q3 revenue of $2.64 billion, meeting its own guidance and reflecting a 1.4% sequential gain. Three of its five verticals posted annual growth, led by technology and communications with a 3.5% rise, while consumer, energy, manufacturing, and resources sectors declined over 5.5% YoY.
Total deal bookings, however, contracted sharply by 29% sequentially to $3.3 billion, with large deals slowing down and taking time to ramp up.
AI and Strategic Outlook
CEO Srini Pallia highlighted that AI adoption is reshaping client priorities and driving productivity gains. “Organizations are reshaping priorities as AI influences how they plan, invest and operate. AI is now a board level mandate led by CEOs,” he said. While Wipro did not disclose AI-specific revenues, management indicated AI-led client spending is expected to improve discretionary investments in 2026.
Q4 Guidance and Acquisitions
For Q4 FY26, Wipro expects revenue between $2.63 billion and $2.68 billion, a sequential growth of 0%-2% in constant currency terms. The guidance includes two months of incremental revenue from the $375 million Harman Digital Transformation Solutions acquisition.
Workforce and Hiring
Attrition decreased slightly to 14.2% from 14.9% in the previous quarter. Wipro added 6,529 employees in Q3, including talent from the Harman acquisition, bringing total headcount to 242,021. Freshers hiring was muted, with 400 recruited in the quarter, but the company plans to hire 7,500–8,000 by fiscal year end.
Dividend Announcement
Wipro’s board declared an interim dividend of ₹6 per share, payable by February 14, 2026.
