WNS Charts a Course to 9% Revenue Growth in FY2026: AI and Strategic Acquisitions Drive the Momentum

WNS (Holdings) Limited has outlined ambitious growth targets for fiscal 2026, projecting a 7% to 11% constant currency revenue increase, with a midpoint of ~9%, driven by strategic acquisitions, AI integration, and transformative client deals. The guidance reflects the business process outsourcing (BPO) leader’s pivot toward high-margin digital solutions, positioning it to capitalize on the global shift toward technology-driven services.

Revenue Growth Anchored in Visibility and Innovation

WNS’s FY2026 revenue is projected to reach $1,352 million to $1,404 million, a rise from its $1,265.5 million fiscal 2025 result. The midpoint of this range assumes 90% visibility, a strong indicator of client commitments. However, the guidance comes with caveats: a USD/INR exchange rate of 87.0 (up from 84.5 in fiscal 2025) could pressure margins, while geopolitical risks and macroeconomic uncertainty loom.

AI as a Strategic Lever: The Kipi.ai Acquisition

A cornerstone of WNS’s growth strategy is its $20 million acquisition of Kipi.ai in Q4 2025, which is expected to contribute 2% to FY2026 revenue growth. Kipi.ai’s expertise in AI, data analytics, and automation directly aligns with WNS’s vision of becoming a leader in “domain-plus-digital” solutions. CEO Keshav Murugesh emphasized that this move strengthens WNS’s ability to deliver AI-driven insights to clients across industries, from banking to travel.

The integration of Kipi.ai’s capabilities into WNS’s offerings is critical to retaining and expanding relationships with clients seeking predictive analytics, process optimization, and real-time decision-making tools. This contrasts with competitors still reliant on legacy BPO models, giving WNS an edge in high-growth sectors like fintech and digital healthcare.

Strategic Deals Fuel Vertical-Specific Momentum

Beyond AI, WNS has secured two large transformational deals in its Banking & Financial Services and Travel verticals. These contracts, while not explicitly tied to AI, underscore the company’s focus on client-specific, end-to-end solutions that drive recurring revenue. In fiscal 2025, these verticals already contributed 45% of total revenue, highlighting their importance to WNS’s portfolio.

Financial Health: Prudent Capital Allocation and Strong Balance Sheet

WNS’s financials support its growth ambitions. The company ended fiscal 2025 with $267.4 million in cash and investments, a 34-day DSO (Days Sales Outstanding), and a global workforce of 64,505 employees—key metrics reflecting operational efficiency and liquidity.

The FY2026 Adjusted Net Income (ANI) is projected to grow to $199 million–$211 million, despite excluding one-time fiscal 2025 gains. Meanwhile, Adjusted EPS is expected to rise to $4.43–$4.70, signaling improved profitability. Capital expenditures of $65 million will fund tech upgrades and facilities, ensuring scalability.

Risks and Considerations

While WNS’s strategy is compelling, risks remain. The GBP/USD exchange rate assumption of 1.29 and USD/INR rate of 87.0 could invert if currency markets shift, compressing margins. Additionally, 70% of WNS’s revenue is derived from North America and Europe, regions facing slowing GDP growth. The company’s reliance on large clients—with top five accounts accounting for ~25% of revenue—also introduces concentration risk.

Conclusion: A Balanced Play for Growth Investors

WNS’s FY2026 guidance is ambitious but achievable given its 90% revenue visibility, Kipi.ai synergies, and high-margin strategic deals. The 2% AI-driven uplift and $211 million ANI ceiling suggest a focus on profitability over sheer scale. While currency headwinds and macro risks are valid concerns, WNS’s cash reserves, low DSO, and inclusion in key indices (Russell 2000, MSCI US Small Cap) provide a safety net.

For investors, WNS represents a sector leader betting on AI and domain expertise—a trend likely to outlast current economic headwinds. With a 2% CAGR from Kipi.ai and two transformative contracts in critical verticals, the 9% midpoint growth target is more than a number: it’s a roadmap to sustainable differentiation in a consolidating BPO market.

In a sector where innovation separates winners from losers, WNS’s strategic moves in AI and client-specific solutions position it to outperform peers in the coming years.