WNS Q1 revenue beats estimates, profit misses

Overview

• WNS, which is being bought by Capgemini, posts fiscal Q1 revenue grows 9.5% yr/yr, beating analyst expectations

• Profit after tax and operating income missed analyst estimates, per LSEG data

Outlook

• WNS declines to provide fiscal year 2026 guidance due to Capgemini acquisition

Result Drivers

• NEW CLIENTS - Revenue growth driven by new client additions and expansion of existing relationships

• ACQUISITION IMPACT - Acquisition of Kipi.ai contributed to revenue growth, offsetting some headwinds

• CURRENCY MOVEMENTS - Favorable currency movements supported revenue, partially offsetting losses from a large Healthcare client

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy."

• Wall Street's median 12-month price target for WNS (Holdings) Ltd is $76.50, about 2.4% above its July 23 closing price of $74.69

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw8rRBG3a