WNS Q1 revenue jumps 9.5% to $353.8Mn despite profit pressures

LONDON, UNITED KINGDOM — WNS delivered strong revenue growth in its fiscal 2026 first quarter, with sales climbing 9.5% year-over-year to $353.8 million. 

Net income, however, declined to $21.8 million as acquisition expenses and high-level investments in the field of strategy weighed down profitability, although the company has grown in clientele and AI capability.

Steady revenue growth driven by acquisitions

The increase was attributable to new customer wins, contract supplements, and its involvement in the recent acquisition of AI company Kipi.ai. Revenue less repair payments—a key non-GAAP metric—rose 8.8% to $339.9 million, reflecting the company’s core operational performance.

In turn, an increase in revenue by 5.2% to $336.3 million in the last quarter was aided by transaction turnover as well as currency moves. 

Constant currency revenue, which eliminates the impact of exchange rate movement by subtracting payments on repair, is up 7.1% year-over-year and 2.9% since last quarter. 

Nevertheless, some of the improvements were countered by the loss of a significant client in the healthcare industry and weaker demands within the online travel segment.

Profit declines amid rising costs and investments

Although revenue increased, WNS’s net income was lower, at $21.8 million, compared to $28.9 million in the same quarter last year and $50.8 million in the previous quarter. 

The decrease was caused by a surge of costs, such as the $4.1 million in acquisition-related expenses of Kipi.ai, and more expenses in labor and technology as the company prepares to ramp up large deals. 

There was also an increase in the share-based compensation and statutory employment taxes, which further strained margins.

Adjusted net income (ANI), excluding one-time costs, was $46 million, representing a 4.5% year-over-year increase but a significant decline from Q4’s $66.2 million. The successive decrease was seasonal, such as the yearly commitments of client productivity and salary increments. 

ANI margins dipped to 13.5% of revenue, less repair payments, compared to 14.1% a year earlier, underscoring the cost pressures facing the business.

Operational strength and strategic positioning

WNS expanded its customer base by six new clients and strengthened 28 existing connections, demonstrating its ability to grow its ownership amidst macroeconomic tailwinds. 

This was followed by the number of workforce employed by the company worldwide, which stood at 66,085, signifying that the company continues to invest in talent development to facilitate future growth. 

The daily sales outstanding were constant and maintained at 36 days, which implies that cash is well controlled.

Keshav Murugesh, WNS’ Chief Executive Officer (CEO), has highlighted the company’s focus on AI and automation, saying it places WNS in a favorable space to ride the increased demand for intelligent business process solutions. 

He pointed out that we are faring well behind our differentiated capabilities and robust execution, which are leading to sustainable growth.

Balancing growth and profitability

The first quarter earnings of WNS reflect a company that is in the process of evolving, with its revenue growth being balanced by cost increases and other strategic investments. 

With $225.8 million in cash and investments, WNS retains the flexibility to fund further growth initiatives. Investors will be watching for signs of margin improvement in upcoming quarters as the company’s investments begin to yield higher returns.

WNS recently ranked #22 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies.