Executive Summary

WNS delivered sequential growth and margin expansion in Q4 FY2025: Revenue $336.3M (+1.0% q/q, -0.2% y/y) and net revenue (“revenue less repair payments”) $323.3M (+1.3% q/q, -0.8% y/y); adjusted operating margin rose to 21.4% (from 19.3% in Q3) .
Results beat S&P Global consensus: revenue $336.3M vs $323.6M est.* and adjusted EPS $1.45 vs $1.41 est.*, aided by broad-based demand, productivity and FX tailwinds; GAAP profit also benefited from a $12.2M facility sale in India .
FY2026 guidance: net revenue (rev less repair) $1,352–$1,404M (+7–11% y/y), ANI $199–$211M, adjusted EPS $4.43–$4.70 on ~44.9M diluted shares; includes ~2% revenue from Kipi.ai; capex up to $65M; ~90% revenue visibility at midpoint .
Catalysts: signing two large multi‑year transformational deals (BFSI, corporate travel), Kipi.ai acquisition (600+ Snowflake-certified staff) to accelerate data/AI; near-term watch items include seasonally soft Q1 margin cadence (17–17.5%) before sequential improvement through FY2026 .

What Went Well and What Went Wrong

What Went Well
- Sequential growth resumed with margin expansion: constant-currency net revenue +2.6% q/q and adjusted operating margin >200 bps expansion; “generated strong free cash flow” (CEO) .
- Strategic execution: closed two large transformational deals (BFSI risk ops and corporate travel operations); expect revenue contribution beginning H1 FY2026 .
- Capability upgrade: acquired Kipi.ai to deepen data, analytics and AI; 600+ employees and extensive Snowflake talent pool enhance differentiation (CEO) .
What Went Wrong
- Top-line y/y softness persisted: Q4 revenue -0.2% y/y and net revenue -0.8% y/y, reflecting a large healthcare client loss, lower online travel volumes, and FX headwinds .
- Elevated attrition: global attrition rose to 39% (vs 32% in Q3), though management framed entry-level churn as manageable .
- Near-term margin headwind: Q1 FY2026 adjusted operating margin expected at 17–17.5% given seasonal productivity/wage increases and ramp costs, then improving through the year .

Financial Results

Metric	Q4 2024	Q2 2025	Q3 2025	Q4 2025	Q4 2025 Consensus*
Revenue ($M)	$336.8	$322.6	$333.0	$336.3	$323.6*
Revenue less repair payments ($M)	$325.9	$310.7	$319.1	$323.3	N/A
GAAP Diluted EPS ($)	$0.30	$0.92	$1.07	$1.12	N/A
Adjusted Diluted EPS ($)	$1.12	$1.13	$1.04	$1.45	$1.41*
Adjusted Operating Margin (%)	20.9%	18.6%	19.3%	21.4%	N/A
Net Income Margin (GAAP, %)	4.3%	13.0%	14.6%	15.1%	N/A
Adjusted Net Income Margin (%)	16.6%	16.6%	14.7%	20.5%	N/A

Q4 2025 Comparison	Value
QoQ: Revenue growth vs Q3 2025	+1.0% (336.3 vs 333.0)
YoY: Revenue growth vs Q4 2024	-0.2% (336.3 vs 336.8)
QoQ: Adjusted EPS growth vs Q3 2025	+39.4% (1.45 vs 1.04)
YoY: Adjusted EPS growth vs Q4 2024	+29.5% (1.45 vs 1.12)
Vs Consensus: Revenue surprise	+$12.6M / +3.9% (336.3 vs 323.6)*
Vs Consensus: Adjusted EPS surprise	+$0.04 / +2.9% (1.45 vs 1.41)*

Drivers and notes: YoY headwinds from a large healthcare client loss, lower online travel volumes, and FX; sequential improvement from broad-based growth partly offset by completion of a utilities platform migration and FX . GAAP profit benefited from a $12.2M facility asset sale; adjusted margin improved on operating leverage, productivity, and FX .

Balance sheet and cash flow trend

Metric	Q2 2025	Q3 2025	Q4 2025
Cash & Investments ($M)	$221.5	$231.5	$267.4
Total Debt ($M)	$262.8	$199.6	$243.5
Cash from Operations ($M)	$43.6	$88.7	$53.4
Capex ($M)	$12.7	$12.1	$18.6
Debt Repayments ($M)	$43.0	$58.4	$33.0

KPIs

KPI	Q2 2025	Q3 2025	Q4 2025
New Clients Added	9	7	9
Expansions	41	52	50
DSO (days)	38	34	34
Global Headcount	62,951	63,390	64,505
Attrition Rate	34%	32%	39%
Billed Seat Capacity	43,108	43,550	42,494
Work from Office (%)	72%	71%	32%

Segment breakdown: Not quantitatively disclosed in the Q4 8‑K; narrative highlights include large BFSI deal (risk ops for a major payments platform) and corporate travel management deal ramping in H1 FY2026 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue less repair payments	FY2026	N/A	$1,352M–$1,404M; +7–11% y/y; GBP/USD 1.29	New
Adjusted Net Income (ANI)	FY2026	N/A	$199M–$211M; USD/INR 87.0	New
Adjusted Diluted EPS	FY2026	N/A	$4.43–$4.70 on ~44.9M diluted shares; excludes FY2025 non‑recurring benefits [press release references $0.46; CFO referenced ~$0.49]	New; note disclosure variance
Capex	FY2026	N/A	Up to $65M	New
Assumptions/Other	FY2026	N/A	~90% revenue visibility at midpoint; ~2% revenue from Kipi.ai	New

Note on FY2025 guidance context: WNS revised FY2025 guidance intra‑year; Q3 8‑K set net revenue (less repair) at $1,255–$1,271M and ANI $205–$209M, including a $12.2M Q4 facility sale benefit .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 FY2025)	Previous Mentions (Q3 FY2025)	Current Period (Q4 FY2025)	Trend
AI/GenAI initiatives	Mature analytics/AI practice; 13 digital assets; 30+ GenAI use cases; training 22K staff	13 clients in production; expanding assets/use cases	~20 clients using GenAI solutions; 31 use cases; Kipi.ai acquisition to scale data/AI	Up
Large deal pipeline	25+ $10M+ ACV deals; removed from FY2025 guide due to timing	Robust; expected closures near-term	Two large 5+ year deals signed; ramping through H1 FY2026	Positive realization
Travel/OTA	Continued reductions; conservative in 2H	OTA down to ~3% of revenue; de-risked	Healthy pipeline in travel and shipping/logistics; corporate travel focus	Stabilizing/derisked
Healthcare client	Loss pressured revenue	Headwind largely behind sequentially	Annualizing y/y in early FY2026 (~1% headwind)	Abating
Margin cadence	FY2025 full-year ~19–20% adjusted op margin	Q4 ~21%; improving with leverage	Q1 FY2026 17–17.5% then sequential improvement; full-year ~flat vs FY2025	Seasonal dip then up
Macro/tariffs	—	—	Clients cautious on tariffs/macro; still proceeding with cost/transformation programs	Neutral to positive for core
Discretionary projects	Weakness noted	Stable	Guide assumes no improvement; projects often cost-reduction themed	Cautious

Management Commentary

Strategic momentum: “In the fiscal fourth quarter, WNS sequentially grew constant currency revenue less repair payments by 2.6%, expanded our adjusted operating margins by over 200 basis points, and generated strong free cash flow… acquisition of Kipi.ai… and the signing of two large transformational deals…” — Keshav Murugesh, CEO .
FY2026 setup: “We enter the fiscal year with 90% visibility to the midpoint of our revenue projection… includes a 2% contribution from our acquisition of Kipi.ai… expect capital expenditures to be up to $65 million.” — Arijit Sen, CFO .
Demand tone: “Clients being cautiously optimistic… nobody wants to wait now anymore in terms of their digital transformation journeys… cost reduction programs must happen along with it.” — CEO (Q&A) .
Large deals nature: Both 5+ years; BFSI work includes risk ops and technical payment processing; travel deal includes operations/fulfillment and online bookings .

Q&A Highlights

Client demand and macro: Despite tariff/macro uncertainty, clients are pushing digital transformation and cost reduction; core (90%) operations are low macro‑correlated, with potential volatility in project work (10%) .
FY2026 growth build: Midpoint ~9% growth includes ~2% headwind from healthcare ramp down/OTA annualization; implies ~13% gross growth algorithm before normal productivity/projects headwind .
Large deals: Minimum $10M ACV; staged ramps through H1 FY2026; five‑plus‑year durations; productivity commitments vary based on clients’ AI deployment posture .
Margin cadence: Expect adjusted operating margin 17–17.5% in Q1 FY2026, then sequential improvement; full‑year margins ~flat vs FY2025 around 19.5% .
Travel exposure: OTA now small (3% in Q3) and diversified; strong pipeline in corporate travel; minimal concentration risk .

Estimates Context

Q4 FY2025 beats (S&P Global consensus): Revenue $336.3M vs $323.6M est.* (+3.9%); adjusted EPS $1.45 vs $1.41 est.* (+2.9%). Beats driven by broad-based growth, productivity, and FX, with GAAP also aided by a $12.2M facility sale .
Target price/other estimate fields were unavailable in the data pull for this quarter.
Values retrieved from S&P Global.*

Key Takeaways for Investors

Sequential growth and margin expansion returned; Q4 revenue beat and adjusted EPS beat should support estimate upward bias, with FY2026 guide implying 7–11% net revenue growth and ~11% adjusted EPS growth excluding FY2025 non‑recurring items .
Two signed large deals (BFSI, corporate travel) provide early FY2026 revenue lift and multi‑year visibility; watch ramp execution through H1 FY2026 .
Data/AI capability step‑up via Kipi.ai (Snowflake‑focused, 600+ staff) strengthens differentiation in higher‑value, productized services—should aid mix and pricing over time .
Near-term margin dip in Q1 FY2026 (17–17.5%) is seasonal/ramp‑related; management expects sequential improvement thereafter with full‑year margins ~flat vs FY2025 .
Travel risk is contained (OTA small and diversified), while healthcare headwinds are largely behind on a sequential basis; y/y headwinds annualize early FY2026 (~3% combined) .
Capital allocation remains balanced (repurchases, M&A, debt paydown); cash generation and low DSO (34 days) offer flexibility to support growth investments .
Trading setup: Positive narrative inflection (signed large deals, AI/data expansion, guidance) vs seasonal Q1 margin dip; focus on H1 ramps, discretionary project trends, and attrition normalization for trajectory confirmation .

Additional Context and Sources

Press release/8‑K: Q4 FY2025 results, KPIs, non‑GAAP reconciliations, FY2026 guidance .
Earnings call transcript: detailed commentary on demand, large deals, margins, AI progress, travel, and attrition .
Prior quarters for trend: Q3 FY2025 and Q2 FY2025 8‑K/Transcripts .
Kipi.ai acquisition press release (Seroda Ventures): Snowflake credentials and scale .

Footnote on disclosure variance: FY2026 adjusted EPS growth “excluding one‑time FY2025 benefits” referenced ~$0.49 in CFO remarks vs $0.46 in press release; both relate to Q2 tax liability reversal and Q4 facility sale .

S&P Global disclaimer: Items marked with an asterisk (*) are consensus estimates or comparisons based on S&P Global data.

WNS (HOLDINGS) LTD (WNS)·Q4 2025 Earnings Summary