WNS (Holdings) Limited Announces Fiscal Q2 2025 Financial Results
WNS (Holdings) Limited (NYSE: WNS), a leading digital-led business transformation and services partner, reported its financial results for the fiscal second quarter ended September 30, 2024.
Key Financial Metrics
| Financial Metric | Q2 2025 | Q2 2024 | Q1 2025 | YoY Change | QoQ Change | Wall Street Estimates |
|---|---|---|---|---|---|---|
| Total Revenue | $322.6M | $334.0M | $323.2M | -3.4% | -0.2% | $314.76M |
| Adjusted Net Income (ANI)* | $51.5M | $54.4M | $44.0M | -5.3% | +17.0% | N/A |
WNS recorded a 3.4% decline in revenue versus the same quarter last year, falling slightly short on sequential comparison as well. However, revenue surpassed Wall Street consensus estimates of $314.76 million. Notably, the company achieved a higher adjusted net income sequentially due to favorable tax benefits and reduced share-based compensation expenses.
Revenue Performance by Segment
| Segment | Revenue (Q2 2025) | YoY Performance | Comments |
|---|---|---|---|
| Online Travel | N/A | Decrease | Lower volumes impacted performance. |
| Healthcare | N/A | Decrease | Impacted by the loss of a major client. |
Despite performance challenges visible in certain segments like online travel and healthcare, WNS has benefitted from new client additions and expansion within existing client relationships according to the CEO's comments.
Key Developments and Operational Highlights
- Transitioned to US GAAP reporting for enhanced alignment with domestic issuers.
- Favorable currency movements supported financials amid sequential and year-over-year contractions.
- Repurchase of 1,156,269 ordinary shares, influencing Q2 cash by $71.7 million, indicating ongoing strategic investments in shareholder value.
Management Commentary
Keshav Murugesh, CEO, stated, “Despite the challenges in our segment-based revenues, our second quarter shows potential, depicting demand for our digitally-led transformation and cost reduction solutions. Looking ahead, our pipeline consists of large opportunities; however, realization timeline remains uncertain, impacting our fiscal guidance. We focus on future revenue acceleration by positioning ourselves effectively for fiscal 2026.”
Forward Guidance
For fiscal 2025, WNS has adjusted its forecast: - Revenue less repair payments projected between $1,250 million and $1,296 million. - Adjusted diluted EPS anticipated to range from $4.13 to $4.35.
Market Reaction
Following the release of these earnings, WNS's stock price experienced a positive movement, increasing by approximately 1.83%.
In summary, WNS's Q2 2025 results reflect ongoing resilience in core business transformation areas amid sector-specific challenges, with financial performance aligning largely with internal expectations and exceeding external revenue forecasts. The forward-looking strategy remains focused on capturing large deal opportunities and bolstering long-term shareholder value through technology and domain investments.
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