Wns (Holdings) (WNS -0.10%), a provider of global business process management services, released its results for the three months ended June 30, 2025, on July 24, 2025. The company reported GAAP revenue of $353.8 million, a 9.5% increase compared to the prior year period, but short of analyst expectations, which stood at $361.27 million (GAAP). Non-GAAP earnings per share reached $1.02, missing the consensus estimate of $1.11 (non-GAAP), but up from $0.93 (non-GAAP, Q1 FY2025) in the prior-year period. While revenue growth stayed strong, driven by new clients and recent acquisitions, higher expenses and one-time transaction costs led to margin contraction. The quarter showed expansion, yet also highlighted specific headwinds and transaction-related expenses around the upcoming Capgemini acquisition.
| Metric | Q1 FY26(3 months ended Jun 30, 2025) | Q1 Estimate | Q1 FY25(3 months ended Jun 30, 2024) | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.02 | $1.11 | $0.93 | 9.7% |
| Revenue (GAAP) | $353.8 million | $361.27 million | $323.1 million | 9.5% |
| Revenue less repair payments (Non-GAAP) | $339.9 million | $312.4 million | 8.8% | |
| Adjusted Net Income (Non-GAAP) | $46.0 million | $44.0 million | 4.5% | |
| Adjusted Operating Margin (Non-GAAP) | 18.0% | 18.4% | (0.4 pp) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q4 2025 earnings report.
Company Overview and Key Focus Areas
WNS provides services that help companies manage a wide range of business processes, such as finance, customer support, and industry-specific operations. Its approach is to use deep expertise in specific fields, like insurance and healthcare, to create tailored solutions for its customers. The company relies on a global network of service centers and employs over 66,000 people worldwide.
Recent years have seen WNS focus on expanding its expertise in artificial intelligence and analytics, as well as deepening its industry knowledge in its main markets. A key part of its growth strategy includes acquiring companies with useful new technologies or market reach, like Kipi.ai, to enhance its offerings and capabilities. Major success factors for WNS include its ability to win new clients, develop long-term relationships, and continuously innovate through advanced digital tools.
Quarter Highlights: Growth, Expenses, and Strategic Moves
Revenue growth (GAAP) reached 9.5% compared to the same quarter last year, helped by the addition of six new clients and expanded work with 28 existing customers. The acquisition of Kipi.ai, a company that specializes in artificial intelligence-powered solutions, contributed 2.0 percentage points to the overall constant currency revenue less repair payments growth rate. The company also found positive effects from favorable currency movements. However, the loss of a sizable healthcare client and lower activity from the online travel sector offset some of these improvements.
Profitability showed a mixed picture. Adjusted net income, which is net profit minus items like acquisition and one-time costs, increased to $46.0 million, compared to $44.0 million in the prior year period. Still, both GAAP and adjusted margins dropped, with adjusted operating margin (non-GAAP) coming in at 18.0%, down 0.4 percentage points from the prior year. One significant factor was higher spending, which included investments in future growth, hiring ahead of large deals, increases in share-based compensation, and acquisition-related costs such as integrating Kipi.ai and payments related to the planned Capgemini takeover. The absence of the prior year’s one-time sale of assets in Q4 FY2025 also contributed to a sequential income drop.
The company reported $225.8 million in cash and investments and total debt of $266.2 million, resulting in a slight uptick in net debt compared to recent quarters. WNS generated $29.5 million cash from operations. It also executed a sizeable share buyback, repurchasing 1.3 million shares at $57.98 per share for a total of $75.4 million. The metric "days sales outstanding," a measure of how quickly clients pay their invoices, remained steady at 36 days compared to Q1 FY2025.
The acquisition of Kipi.ai boosted the company’s advanced technology capabilities, supporting its long-term goal of integrating artificial intelligence and analytics into a wide range of its services. WNS’s ongoing investment in digital expertise reflects the growing importance of automation and data-driven approaches for business process management across industries. The company’s vertical, domain-led structure helped expand many customer relationships during the period, highlighting the focus on building specialized, client-centric solutions. The added global headcount and delivery centers support WNS’s goal to offer scalable, flexible service to clients worldwide.
Looking Ahead: Guidance and Key Watch Points
WNS did not provide any financial guidance for the coming quarter or for the remainder of fiscal 2026. Management stated that, in light of the pending acquisition by Capgemini, it will not update forward expectations or hold an earnings conference call. WNS does not currently pay a dividend.
For investors, the main areas to monitor include any future disclosures around the Capgemini deal timeline, further margin trends as one-time charges dissipate, and progress in mitigating client losses or slowdowns. The recent accelerated investments in technology and talent, along with ongoing integration of acquisitions, remain important signals as WNS continues its growth journey. The combination with Capgemini, once complete, is likely to define much of the company’s immediate future direction and reporting rhythm.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
