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WNS Limited (WNS)
NYSE:WNS
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WNS (WNS) AI Stock Analysis

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WNS

WNS

(NYSE:WNS)

Rating:79Outperform
Price Target:
$86.00
▲(15.00%Upside)
WNS's strong financial performance and positive corporate events, particularly the acquisition by Capgemini, are significant positives. Technical indicators show bullish momentum but suggest potential short-term overbought conditions. Valuation is moderate, with some potential for growth, though the lack of dividends may deter income investors.
Positive Factors
Acquisition Impact
The acquisition is expected to be immediately accretive to revenue, suggesting potential financial improvement for WNS.
Client Growth
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
Limited Upside
The offer price of USD76.50 per share leaves an upside of ~2% for the current market price of USD74.90 per share, hence the downgrade in the target price for WNS.
Stock Price Ceiling
Acquisition by Capgemini puts a ceiling on further upside.
Target Price Downgrade
The stock is downgraded to Neutral as it has rallied to near the acquisition price, limiting further upside potential.

WNS (WNS) vs. SPDR S&P 500 ETF (SPY)

WNS Business Overview & Revenue Model

Company DescriptionWNS (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 MoneyWNS makes money primarily through its business process management services, which include a variety of outsourced solutions tailored to meet the specific needs of different industries. The company generates revenue by entering into long-term contracts with clients who seek to improve their operational performance and reduce costs through outsourcing. Key revenue streams include fees for services rendered, which are often based on the volume of work processed, the complexity of tasks, or the achievement of specific performance metrics. WNS has significant partnerships with clients across industries like insurance, banking, healthcare, travel, and manufacturing, contributing to its revenue growth. The company's ability to provide value-added services, such as analytics and digital transformation, further enhances its earning potential by offering additional services that clients may integrate into their operations.

WNS Earnings Call Summary

Earnings Call Date:Jul 07, 2025
(Q3-2025)
|
% Change Since: 14.38%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Neutral
WNS showed promising signs of sequential growth and a strong pipeline, especially in Gen AI solutions and large deals. However, year-over-year revenue growth was stagnant, and margins faced pressure. Despite high attrition and reduced adjusted net income, the strong cash flow and business expansions provide a positive outlook.
Q3-2025 Updates
Positive Updates
Sequential Revenue Growth and Expansion
WNS achieved a sequential revenue growth of 2.7% on a reported basis and 3.2% on a constant currency basis in Q3 2025, driven by broad-based demand for digitally led business transformation.
Strong New Business Momentum
In Q3 2025, WNS added 7 new logos and expanded 52 existing relationships, indicating a strong pipeline and stable demand for process management deals.
Gen AI Solutions Progress
WNS has developed over 30 Gen AI use cases and 13 digital assets, with 13 clients already in production and another 20 committed or underway.
Healthy Cash Flow
WNS generated $88.7 million in cash from operating activities in Q3 2025, maintaining a strong cash position of $231.5 million.
Large Deal Pipeline
The large deal pipeline remains robust and healthy, with several opportunities that could accelerate company growth.
Negative Updates
Flat Year-over-Year Revenue Growth
Net revenue for Q3 2025 showed only a 1% increase from the previous year and was flat on a constant currency basis.
Operating Margin Pressure
Adjusted operating margin decreased to 19.3% in Q3 2025 from 19.7% last year, mainly due to lower employee utilization and increased infrastructure investments.
High Attrition Rates
Attrition rate remains high at 32%, up from 29% in the same quarter last year, potentially impacting talent retention.
Lower Adjusted Net Income
Adjusted net income for Q3 2025 fell to $47 million from $58.5 million in the same quarter last year.
Company Guidance
During the WNS fiscal Q3 2025 earnings call, management provided guidance and insights into the company's performance and future outlook. WNS reported net revenue of $319.1 million for Q3, marking a year-over-year increase of 1% on a reported basis and a sequential increase of 2.7%. The adjusted operating margin was 19.3%, a slight decrease from the previous year but an improvement from the last quarter. Looking forward, WNS expects high single to low double-digit revenue growth in fiscal 2026, driven by stable demand for digital transformation and process management services. The company continues to advance its large deal pipeline, which remains robust and is expected to contribute to future growth. WNS's fiscal 2025 guidance anticipates net revenue between $1.255 billion and $1.271 billion and an adjusted net income range of $205 million to $209 million, with a projected capital expenditure of up to $60 million. Additionally, the firm is investing heavily in AI and Gen AI capabilities, having developed over 30 Gen AI use cases and trained over 22,000 employees to enhance their digital expertise.

WNS Financial Statement Overview

Summary
WNS presents a solid financial profile with strong revenue growth, profitability, and cash flow generation. The company demonstrates effective management of its financial resources, though attention to leverage and cash conversion efficiency could further strengthen its financial standing.
Income Statement
85
Very Positive
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
80
Positive
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
78
Positive
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.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.31B1.32B1.22B1.11B912.64M
Gross Profit465.50M466.56M399.09M374.63M325.44M
EBITDA280.90M236.10M215.91M219.73M209.70M
Net Income170.10M140.15M137.31M132.10M102.62M
Balance Sheet
Total Assets1.55B1.41B1.50B1.16B1.11B
Cash, Cash Equivalents and Short-Term Investments263.81M243.96M228.99M319.55M309.31M
Total Debt437.93M369.35M372.39M166.99M208.66M
Total Liabilities709.78M647.03M703.31M410.49M422.06M
Stockholders Equity837.72M765.73M801.14M754.00M684.09M
Cash Flow
Free Cash Flow153.04M174.95M160.01M159.13M187.20M
Operating Cash Flow207.16M229.24M204.96M187.45M213.73M
Investing Cash Flow-92.74M-26.49M-233.24M-48.80M-92.78M
Financing Cash Flow-89.77M-237.97M63.03M-127.12M-117.76M

WNS Technical Analysis

Technical Analysis Sentiment
Positive
Last Price74.78
Price Trends
50DMA
64.71
Positive
100DMA
63.09
Positive
200DMA
57.45
Positive
Market Momentum
MACD
3.00
Positive
RSI
80.08
Negative
STOCH
40.97
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 74.78 is above the 20-day moving average (MA) of 73.80, above the 50-day MA of 64.71, and above the 200-day MA of 57.45, indicating a bullish trend. The MACD of 3.00 indicates Positive momentum. The RSI at 80.08 is Negative, neither overbought nor oversold. The STOCH value of 40.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WNS.

WNS Risk Analysis

WNS disclosed 55 risk factors in its most recent earnings report. WNS reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Delays or failure to complete our transition to reporting on US domestic issuer forms and filing financial statements under US GAAP may affect expected benefits. Q1, 2024
2.
We qualify as a foreign private issuer and, as a result, are not subject to U.S. proxy rules. Q1, 2024

WNS Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$3.21B19.9421.24%1.94%26.19%
78
Outperform
$37.18B15.8816.61%1.63%4.09%14.05%
77
Outperform
$7.93B15.4222.21%1.43%7.31%-15.86%
76
Outperform
$3.77B16.425.59%2.30%11.31%-16.02%
74
Outperform
$9.59B23.5611.57%4.72%-3.06%
72
Outperform
$6.87B31.8723.81%14.18%21.49%
63
Neutral
$34.93B5.90-12.00%2.00%5.61%-19.55%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WNS
WNS
74.90
15.32
25.71%
CTSH
Cognizant
74.91
0.37
0.50%
EPAM
Epam Systems
168.51
-46.62
-21.67%
EXLS
Exlservice Holdings
42.79
7.53
21.36%
G
Genpact
44.20
10.04
29.39%
CNXC
Concentrix
57.84
-10.88
-15.83%

WNS Corporate Events

M&A TransactionsShareholder Meetings
WNS Announces Acquisition Agreement with Capgemini
Positive
Jul 30, 2025

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.

The most recent analyst rating on (WNS) stock is a Buy with a $61.00 price target. To see the full list of analyst forecasts on WNS stock, see the WNS Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
WNS Acquired by Capgemini in $3.3 Billion Deal
Positive
Jul 7, 2025

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.

The most recent analyst rating on (WNS) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on WNS stock, see the WNS Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 30, 2025