Wipro Q3 results: IT firm's ADR falls 5.5% as net profit declines 7%

• Wipro ADRs fell 5.5% after Q3 net profit dropped 7% to Rs 3,119 crore
• Q4 revenue forecast is flat to 2% growth, at $2.64-$2.69 billion
• Deal bookings fell to $3.34 billion from $4.69 billion in the prior quarter

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The American Depository Receipts of Wipro were trading 5.5% lower in New York on January 16 as the IT major's net profit in December quarter fell 7%.

At 9:35 am EST, Wipro ADR was trading 5.5% lower at $2.8.

The Bengaluru-based IT firm forecast revenue in the fourth quarter to grow in the range of flat to 2% on a sequential basis. That implies revenue will be in the range of $2.64 billion to $2.69 billion.

Net profit for the quarter fell 7% to Rs 3,119 crore. This was adjusted for a one-time charge of Rs 300 crore due to India's new labour codes, the company said.

Total deal bookings came in at $3.34 billion, down from $4.69 billion in the prior quarter but up from $3.5 billion a year earlier.

Earlier this week, larger Tata Consultancy Services, HCLTech and Infosys beat revenue forecasts and flagged tech demand despite uncertainty, with TCS saying it was confident of "a good calendar year 2026".

Banking and financial services, the company's largest segment that accounts for over a third of its revenue, saw demand pickup, with revenue from the segment rising 1.6%.

On a quarter-on-quarter basis, Wipro’s profit fell 3.9% while revenue rose 3.7%.

"In Q3, we delivered broad-based growth in line with our expectations. As AI becomes a strategic imperative, Wipro Intelligence is emerging as a differentiator and contributed to several wins this quarter. We saw greater adoption of our AI-enabled platforms and solutions, scaled AI-led delivery through WINGS and WEGA, and expanded our innovation network across global locations," Wipro CEO and MD Srini Pallia said.

Larger rivals TCS, Infosys and HCLTech have also registered a significant impact from the implementation of new Labour Codes in their Q3 numbers. Earlier this week, TCS said the rollout of the new labour codes in Q3FY26 resulted in a statutory impact of Rs 2,128 crore, while Infosys took a hit of Rs 1,289 crore during the quarter.

HCLTech also disclosed a one-time provision of about Rs 719 crore linked to the implementation.

The Wipro scrip settled at Rs 267.25 on the BSE on Friday, 2.73 per cent higher than the previous close. The results were announced in the post-market hours.