WNS Stock Forecast & Price Target

WNS (Holdings) Ltd has demonstrated resilience in its business performance, with a 2.7% sequential revenue growth (3.2% in constant currency) in 3Q, surpassing both internal and consensus estimates, underscoring its strong market position. Management anticipates significant revenue growth for FY26, projected in the high-single to low double-digits range, driven by expanded client relationships and new logo acquisitions, indicating a positive outlook for future performance. Furthermore, the company raised its expected earnings per share (EPS) to $4.46-$4.55, reflecting improved financial metrics and enhanced confidence in accelerating growth beyond FY26.

WNS (Holdings) Ltd has faced a decline in its adjusted operating margins, reporting a 19.3% margin that is down 40 basis points year-over-year and 50 basis points below expectations, indicative of financial performance challenges. The company's adjusted earnings per share (EPS) of $1.04 also fell short of estimates, contributing to concerns about its growth trajectory in a potentially stagnant economic environment characterized by persistent inflation and geopolitical tensions. Furthermore, revenue growth is projected to be below trend, leading to a reduced valuation compared to peers and historical metrics, which adds further pressure to the company’s financial outlook.