WNS Announces Fiscal 2026 First Quarter Earnings
Highlights – Fiscal 2026 First Quarter: GAAP Financials • Revenue of $353.8 million, up 9.5% from $323.1 million in Q1 of last year and up 5.2% from $336.3 million last quarter • Profit of $21.8 million, compared to $28.9 million in Q1 of last year and $50.8 million last quarter • Diluted earnings per share of $0.48, compared to $0.61 in Q1 of last year and $1.12 last quarter Non-GAAP Financial Measures * • Revenue less repair payments of $339.9 million, up 8.8% from $312.4 million in Q1 of last year and up 5.2% from $323.3 million last quarter • Adjusted Net Income (ANI) of $46.0 million, compared to $44.0 million in Q1 of last year and $66.2 million last quarter • Adjusted diluted earnings per share of $1.02, compared to $0.93 in Q1 of last year and $1.45 last quarter Other Metrics • Added 6 new clients in the quarter, expanded 28 existing relationships • Days sales outstanding (DSO) at 36 days • Global headcount of 66,085 as of June 30, 2025 Reconciliations of the non-GAAP financial measures discussed below to our GAAP operating results are included at the end of this release. See also 'About Non-GAAP Financial Measures.' Revenue in the first quarter was $353.8 million, representing a 9.5% increase versus Q1 of last year and an increase of 5.2% from the previous quarter. Revenue less repair payments* in the first quarter was $339.9 million, increasing 8.8% year-over-year and 5.2% sequentially. Excluding exchange rate impacts, constant currency revenue less repair payments* in the fiscal first quarter was up 7.1% versus Q1 of last year and up 2.9% sequentially. Year-over-year, revenue growth driven by new client additions, the expansion of existing relationships, our acquisition of Kipi.ai, and favorable currency movements was partially offset by headwinds from the loss of a large Healthcare client and lower volumes in the online travel segment. Sequentially, broad-based revenue growth, higher transaction volumes, our acquisition of Kipi.ai, and favorable currency movements were partially offset by the impact of annual client productivity commitments.
Profit in the fiscal first quarter was $21.8 million, as compared to $28.9 million in Q1 of last year and $50.8 million in the previous quarter. Year-over-year, profit decreased as a result of increased expenses which are excluded from ANI*, relating to acquisition costs and amortization of intangibles from our acquisition of Kipi.ai, transaction expenses related to the proposed acquisition of the company by Capgemini, and share-based compensation including statutory employment taxes and insurance. Additionally, year-over-year profit was adversely impacted by increased investments and hiring in advance of revenue ramps for large deals. These headwinds were partially offset by higher volumes and favorable currency movements. Sequentially, Q1 profit reduced as a result of a $12.2 million benefit from a facility asset sale in Q4'25, typical business seasonality driven by Q1 annual client productivity commitments and wage increases, and ongoing investments. Q1 quarter-over-quarter profit was also adversely impacted by increases in expenses which are excluded from ANI* including acquisition costs and amortization of intangibles related to the acquisition of Kipi.ai, share-based compensation including statutory employment taxes and insurance, and transaction expenses related to the proposed acquisition of the company by Capgemini. These headwinds were partially offset by higher volumes and favorable currency movements.
Adjusted net income (ANI)* in Q1 was $46.0 million, as compared to $44.0 million in Q1 of last year and $66.2 million in the previous quarter. Explanations for the ANI* movements on a year-over-year and sequential basis are the same as described for GAAP profit above excluding changes in those items included in the ANI* definition presented in the 'About Non-GAAP Financial Measures' section of our financial schedules below.
From a balance sheet perspective, WNS ended Q1 with $225.8 million in cash and investments and $266.2 million in debt. In the quarter, the company generated $29.5 million in cash from operations, incurred $14.8 million in capital expenditures, and repaid $21.1 million in debt. WNS also repurchased 1,300,000 ordinary shares at an average price of $57.98, impacting Q1 cash by $75.4 million. First quarter days sales outstanding were 36 days, as compared to 36 days reported in Q1 of last year and 34 days in the previous quarter.
'In the fiscal first quarter, WNS delivered solid growth in constant currency revenue less repair payments* of 7.1% year-over-year and 2.9% sequentially. Our acquisition of Kipi.ai contributed 2.0% and 1.5%, respectively, and revenue momentum for this differentiated capability remains robust. In Q1, WNS also delivered adjusted net income* and adjusted EPS* ahead of company expectations and completed our authorized share buyback program by repurchasing 1.3 million ordinary shares,' said Keshav Murugesh, WNS' Chief Executive Officer. 'As we work toward closing the previously announced transaction with Capgemini, the WNS Board and management team are confident that this combination will better position us to address our rapidly evolving market, while unlocking new innovation and growth opportunities. Together, we are creating an industry-changing force uniting cutting edge AI and technology with deep domain and process expertise to deliver 'Intelligent Operations' for clients. This shared vision of our two companies, along with our shared values, will drive long-term, sustainable value for all our stakeholders including clients, employees, investors, and local communities.' Pending Acquisition by Capgemini On July 7, 2025, WNS (Holdings) Ltd. announced that it had entered into a definitive agreement to be acquired by Capgemini. As noted in the company's July 11, 2025 press release, WNS will not hold a fiscal Q1 2026 conference call or provide an update to guidance for the fiscal year 2026 in light of the transaction. For further details and discussion of the company's financial performance, please refer to WNS' upcoming quarterly report on Form 10-Q for the quarter ended June 30, 2025, which will be filed with the SEC on or before August 8, 2025. The company also disclosed that the contract of CEO Keshav Murugesh has been extended through the earlier of August 5, 2026 or the closure of the Capgemini acquisition.
* See 'About Non-GAAP Financial Measures' and the reconciliations of the historical non-GAAP financial measures to our GAAP operating results at the end of this release.
About WNS WNS (Holdings) Limited (NYSE: WNS) is a digital-led business transformation and services company. WNS combines deep domain expertise with talent, technology, and AI to co-create innovative solutions for over 700 clients across various industries. WNS delivers an entire spectrum of solutions including industry-specific offerings, customer experience services, finance and accounting, human resources, procurement, and research and analytics to re-imagine the digital future of businesses. As of June 30, 2025, WNS had 66,085 professionals across 65 delivery centers worldwide including facilities in Canada, China, Costa Rica, India, Malaysia, the Philippines, Poland, Romania, South Africa, Sri Lanka, Turkey, the United Kingdom, and the United States. For more information, visit www.wns.com.
Safe Harbor Statement This release contains forward-looking statements, as defined in the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations and assumptions about our Company and our industry. Generally, these forward-looking statements may be identified by the use of terminology such as 'anticipate,' 'believe,' 'estimate,' 'expect,' 'intend,' 'will,' 'seek,' 'should' and similar expressions. These statements include, among other things, expressed or implied forward-looking statements relating to discussions of our strategic initiatives and the expected resulting benefits, our growth opportunities, industry environment, our expectations concerning our future financial performance and growth potential, including estimated capital expenditures, and expected foreign currency exchange rates. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include but are not limited to our pending acquisition by Capgemini S.E., including our expectations relating to timing and completion of the transaction, worldwide economic and business conditions, our dependence on a limited number of clients in a limited number of industries; currency fluctuations; political or economic instability in the jurisdictions where we have operations; regulatory, legislative and judicial developments; increasing competition in the BPM industry; technological innovation; our liability arising from fraud or unauthorized disclosure of sensitive or confidential client and customer data; telecommunications or technology disruptions; our ability to attract and retain clients; negative public reaction in the US or the UK to offshore outsourcing; our ability to collect our receivables from, or bill our unbilled services to our clients; our ability to expand our business or effectively manage growth; our ability to hire and retain enough sufficiently trained employees to support our operations; the effects of our different pricing strategies or those of our competitors; our ability to successfully consummate, integrate and achieve accretive benefits from our strategic acquisitions, and to successfully grow our revenue and expand our service offerings and market share; future regulatory actions and conditions in our operating areas; our ability to manage the impact of climate change on our business; and volatility of our share price. These and other factors are more fully discussed in our most recent annual report on Form 10-K and subsequent reports on Form 6-K and Form 8-K filed with or furnished to the US Securities and Exchange Commission (SEC) which are available at www.sec.gov. We caution you not to place undue reliance on any forward-looking statements. Except as required by law, we do not undertake to update any forward-looking statements to reflect future events or circumstances.
References to '$' and 'USD' refer to the United States dollars, the legal currency of the United States; references to 'GBP' refer to the British pound, the legal currency of Britain; and references to 'INR' refer to Indian Rupees, the legal currency of India. References to GAAP or US GAAP refer to United States generally accepted accounting principles. References to IFRS refer to International Financial Reporting Standards, as issued by the International Accounting Standards Board.
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