WNS Stock Forecast & Price Target

WNS (Holdings) Ltd has demonstrated a positive financial trajectory, highlighted by a 2.7% sequential revenue growth in the third quarter, surpassing initial estimates and driven particularly by a robust 8.4% growth in the Insurance segment due to increased client spending. The company continues to expand its workforce, reflecting a strong demand environment with management noting a growing pipeline of large deals and a significant number of expanded client relationships. Looking ahead, management anticipates fiscal year 2026 revenue growth in the high-single to low double digits in constant currency, indicating confidence in sustained growth and improved profitability, as evidenced by an upward revision of expected EPS to a range of $4.46-$4.55.

WNS (Holdings) Ltd is facing challenges that are reflected in its financial metrics, particularly a decline in adjusted operating margins to 19.3%, which is 50 basis points below expectations and represents a year-over-year decrease of 40 basis points. The company's adjusted EPS of $1.04 fell short of estimates, indicating potential weaknesses in earnings strength despite aligning with consensus. Furthermore, concerns regarding the global economy, including persistently high inflation and rising geopolitical tensions, pose risks to future revenue growth, which is expected to remain below trend relative to peers and historical median valuations.