Shares of Indian IT services firm Wipro Limited (WIT) surged 5.76% in pre-market trading on Friday, following the company's better-than-expected third quarter results for fiscal 2025.
Wipro reported Q3 revenue of $2.61 billion, edging past consensus estimates of $2.60 billion. Strong momentum in the banking, financial services, and insurance (BFSI) vertical as well as the Americas geography drove the outperformance.
More impressively, Wipro posted earnings per share of $0.04, exceeding expectations of $0.03. IT services operating margins hit a stellar 17.5%, marking a 12-quarter high for the firm as it focuses on profitability.
The beat comes as Wipro also announced an interim dividend hike, increasing the payout percentage to 70%+ of net income from 45-50% previously. This demonstrates management's commitment to enhanced shareholder returns.
Looking ahead, Wipro expects Q4 IT services revenue of $2.60-2.66 billion, roughly in line with consensus. With a strong earnings trajectory, margin tailwinds and capital returns, investors are bidding up the stock today.