WNS (WNS) AI Stock Analysis

• Market Cap: $3.22B
• Dividend Yield: N/A
• Average Volume (3M): 3.05M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.73
• Revenue Growth: 1.94%
• EPS Growth: 26.15%
• Country: US
• Employees: 64,505
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): 1.02
• Shares Outstanding: 42,893,906
• 10 Day Avg. Volume: 755,122
• 30 Day Avg. Volume: 3,052,118
• PEG Ratio: 0.52
• Price to Book (P/B): 3.23
• Price to Sales (P/S): 2.06
• P/FCF Ratio: 17.66
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 6.71
• Enterprise Value/Ebitda: 13.92
• 1Y Price Target: $79.10
• Price Target Upside: 5.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 78 Outperform
• Price Target: $86.00 ▲(14.44% Upside)

WNS's overall stock score is driven by its solid financial performance and the positive impact of the Capgemini acquisition. The technical analysis suggests a strong upward trend, though caution is advised due to potential overbought conditions. The valuation is reasonable, but the lack of a dividend yield may deter some investors.

Positive Factors

Client Acquisition

WNS added 9 new clients and expanded 50 existing relationships.

Earnings

WNS reported fiscal first-quarter results that were above consensus estimates across the board, with revenue beating the Street by 5%.

Negative Factors

Acquisition Limitation

Acquisition by Capgemini puts a ceiling on further upside.

Stock Downgrade

The stock is downgraded to Neutral as it has rallied to near the acquisition price, limiting further upside potential.

WNS Business Overview & Revenue Model

Company Description

WNS (Holdings) Limited, a business process management (BPM) company, provides data, voice, analytical, and business transformation services worldwide. The company operates through two segments, WNS Global BPM and WNS Auto Claims BPM. It offers industry-specific services to clients primarily in insurance; diversified businesses, including manufacturing, retail, consumer packaged goods, media and entertainment, and telecommunication; travel and leisure; healthcare; utilities; shipping and logistics; consulting and professional services; and banking and financial services. It also provides a range of services, such as finance and accounting, customer experience, research and analytics, technology, legal, and human resources outsourcing services. In addition, the company offers transformation services designed to allow its clients to enhance productivity, manage changes in the business environment, and leverage business knowledge to increase market competitiveness. Further, it provides claims handling and repair management services for automobile repairs through a network of third-party repair centers; and a suite of accident management services comprising credit hire and repair. WNS (Holdings) Limited was founded in 1996 and is based in Mumbai, India.

How the Company Makes Money

WNS generates revenue primarily through its BPM services, which are provided on a contractual basis to clients across multiple industries. The company's revenue model is driven by the delivery of services that include process outsourcing, technology solutions, and analytics, often structured as fixed-price contracts, time and materials contracts, or a combination of both. Key revenue streams include service fees from ongoing contracts, performance-based incentives, and project-based revenues. Additionally, WNS has formed strategic partnerships with technology providers and industry leaders, enabling it to enhance its service offerings and expand its market reach, which further contributes to its earnings.

WNS Financial Statement Overview

Summary

WNS exhibits robust financials with strong revenue growth and profitability. The balance sheet is stable, though slightly leveraged, and cash flow generation is solid but can improve in cash conversion efficiency.

Income Statement

WNS shows a strong and consistent revenue growth trajectory over the years, with healthy gross and net profit margins. The company exhibits robust EBIT and EBITDA margins, indicating efficient operations and strong profitability. However, slight fluctuations in net income growth suggest potential volatility in some operational areas.

Balance Sheet

The balance sheet reflects a stable financial position with a reasonable debt-to-equity ratio, showing controlled leverage. Solid return on equity indicates effective use of shareholder funds. However, the equity ratio suggests a slightly higher reliance on liabilities compared to equity, which could pose risks if not managed carefully.

Cash Flow

The cash flow analysis reveals steady free cash flow over the years with adequate growth. The operating cash flow to net income ratio is strong, demonstrating the company's ability to generate cash from its operations. However, the free cash flow to net income ratio highlights the need for improvement in converting profits into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.31B	1.31B	1.32B	1.22B	1.11B	912.64M
Gross Profit	465.56M	465.50M	466.56M	399.09M	374.63M	325.44M
EBITDA	224.24M	282.50M	236.10M	215.91M	219.73M	209.70M
Net Income	170.08M	170.10M	140.15M	137.31M	132.10M	102.62M
Balance Sheet
Total Assets	1.55B	1.55B	1.41B	1.50B	1.16B	1.11B
Cash, Cash Equivalents and Short-Term Investments	263.81M	263.81M	243.96M	228.99M	319.55M	309.31M
Total Debt	437.93M	437.93M	369.35M	372.39M	166.99M	208.66M
Total Liabilities	709.78M	709.78M	647.03M	703.31M	410.49M	422.06M
Stockholders Equity	837.72M	837.72M	765.73M	801.14M	754.00M	684.09M
Cash Flow
Free Cash Flow	153.04M	153.04M	174.95M	160.01M	159.13M	187.20M
Operating Cash Flow	207.16M	207.16M	229.24M	204.96M	187.45M	213.73M
Investing Cash Flow	-92.74M	-92.74M	-26.49M	-233.24M	-48.80M	-92.78M
Financing Cash Flow	-89.77M	-89.77M	-237.97M	63.03M	-127.12M	-117.76M

WNS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 75.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WNS, the sentiment is Positive. The current price of 75.15 is above the 20-day moving average (MA) of 74.89, above the 50-day MA of 69.59, and above the 200-day MA of 59.38, indicating a bullish trend. The MACD of 1.27 indicates Positive momentum. The RSI at 76.85 is Negative, neither overbought nor oversold. The STOCH value of 63.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WNS.

WNS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G	79 Outperform	$7.61B	14.49	21.86%	1.44%	7.37%	-14.64%
WNS	78 Outperform	$3.22B	20.04	21.23%	―	1.94%	26.15%
EPAM	76 Outperform	$9.17B	23.89	11.36%	―	9.73%	-0.29%
CTSH	74 Outperform	$34.19B	14.21	16.69%	1.74%	6.34%	12.16%
EXLS	72 Outperform	$6.84B	29.89	24.70%	―	15.15%	34.33%
CNXC	70 Outperform	$3.04B	13.22	5.59%	2.73%	11.31%	-16.02%
Sector *	61 Neutral	$35.97B	6.65	-7.26%	1.99%	8.60%	-7.54%

WNS Corporate Events

WNS Acquisition by Capgemini Gains Key Support

On August 19, 2025, WNS announced that proxy advisory firms ISS and Glass Lewis recommended shareholders vote in favor of its acquisition by Capgemini, a deal initially disclosed on July 7, 2025. The acquisition, valued at $3.3 billion, is expected to close by the end of the year, pending customary conditions and approvals. WNS’ Board of Directors also supports the acquisition, urging shareholders to vote at the meetings scheduled for August 29, 2025.

WNS Announces Acquisition Agreement with Capgemini

On July 7, 2025, WNS (Holdings) Limited announced a definitive agreement for its acquisition by Capgemini, to be executed through a scheme of arrangement under Jersey law. The company has released a scheme document detailing the terms and conditions of the acquisition, with shareholder meetings scheduled for August 29, 2025, to approve the scheme. The acquisition is expected to enhance WNS’s market positioning and operational capabilities, pending shareholder and court approvals.

WNS Acquired by Capgemini in $3.3 Billion Deal

On July 6, 2025, WNS entered into a Transaction Agreement with Capgemini, under which Capgemini will acquire all outstanding shares of WNS for $76.50 per share, amounting to a total cash consideration of $3.3 billion. This acquisition, expected to close by the end of 2025, will position Capgemini as a leader in Intelligent Operations, leveraging Agentic AI to transform business processes. The transaction is anticipated to be accretive to Capgemini’s revenue growth and operating margin, with expected EPS accretion of 4% in 2026 and 7% in 2027. The deal has been unanimously approved by both companies’ boards and aims to enhance Capgemini’s capabilities in AI-powered business process transformation.