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Wipro Guides Q3 IT Services Revenue to $2.57B–$2.63B as Q2 Margins Expand

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WIPRO₹174.05 1.83%

Wipro Limited (NSE:WIPRO) released its second-quarter financial performance and set third-quarter revenue expectations for its IT services segment. The technology firm expects third-quarter IT services revenue to range between $2.571 billion and $2.625 billion, projecting constant currency revenue growth between a decline of 1.5% and a rise of 0.5% sequentially. Shares traded up 1.83% at 174.1 INR following the report.

Despite soft demand weighing on top-line growth expectations, the company demonstrated profit resilience. Second-quarter operating margin reached 16.5%, marking a 0.5 percentage point increase over the previous quarter. Furthermore, cash generation remained robust, with second-quarter operating cash flow reaching 166% of net income, helping bolster balance sheet strength.

Investors will monitor whether client demand stabilizes to lift revenue back into positive territory. Future quarterly performance could depend on stronger order backlog growth or an upgraded outlook to reignite broader top-line momentum.

Key points

  • Wipro Limited expects third-quarter IT services revenue between $2.571 billion and $2.625 billion.
  • Sequential constant currency growth for the third quarter is projected between negative 1.5% and positive 0.5%.
  • Second-quarter operating margin expanded 0.5 percentage points sequentially to 16.5%.
  • Operating cash flow reached 166% of net income during the second quarter.

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Questions and answers

What is Wipro's revenue guidance for the third quarter?

Wipro expects third-quarter IT services revenue between $2.571 billion and $2.625 billion, representing sequential constant currency growth of negative 1.5% to positive 0.5%.

How did Wipro perform in operating margin for Q2?

Wipro reported a second-quarter operating margin of 16.5%, up 0.5 percentage points sequentially from the prior quarter.

How strong was Wipro's cash flow in Q2?

Wipro generated strong cash flow in the second quarter, with operating cash flow reaching 166% of net income.