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WNS saw its share price dip nearly 5% yesterday on FY results that outlined stalling/falling revenue and profitability. WNS is a focused BPS specialist that has showcased some degree of resilience in what has been a pretty challenging year that saw the business revise down guidance back in January (see here) on the loss of a major Healthcare client and reduced volumes in the online travel segment.
For Q4 FY25, WNS reported revenue of $336.3m, down marginally by -0.2% YoY, but up 1.0% sequentially. Profit increased to $50.8m compared to $14.5m in Q4 of last year, primarily due to a goodwill impairment charge in the prior year and a $12.2m facility asset sale in India last quarter. For the full year FY25, revenue was $1,314.9m, down -0.6% from FY24, while adjusted net income was $208.7m versus $218.0m in the previous year.
Operationally, WNS added 9 new clients and expanded 50 existing relationships in Q4. The company also completed the acquisition of Kipi.ai, enhancing its capabilities in data, analytics, and AI - a move that aligns with growing market demand for integrated data and AI solutions (as we discussed here).
Looking ahead, WNS has provided optimistic FY26 guidance, projecting revenue less repair payments between $1,352-$1,404m, representing 7-11% growth. The company enters FY26 with 90% visibility to its revenue projection midpoint, including a 2% contribution from the Kipi.ai acquisition. CEO Keshav Murugesh highlighted the company's progress, noting, "Despite top-line headwinds in fiscal 2025, the company continued to make progress on our strategic investments and position the business for long-term success."
Over recent weeks there has been plenty of speculation (all unconfirmed and attributed to unnamed sources) that have linked WNS to acquisition by a range of potential suitors including Capgemini. Whilst WNS’s offer would certainly fit well with global SIs light on BPS capabilities, we will just have to wait and see how this plays out.
Posted by: Marc Hardwick at 08:38
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results