Operator
Ladies and gentlemen, good day and welcome to Wipro Ltd. Q2 FY27 Earnings Conference Call. As a reminder, all participant lines will be the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing start and then zero on your touchtone phone. Please note that this conference is being recorded and the duration for today's call will be for 45 minutes. I now hand the conference over to Mr. Abhishek Jain, Vice President, Corporate Treasurer and Head of Investor Relations. Thank you and over to you, sir.
Thank you, Yashashree. Good evening. A warm welcome to our Q2 F527 earnings call. We'll begin the call with the business highlights and overview by Srinivas Paliya, our Chief Executive Officer and Managing Director, followed by updates on financial overview by our CFO, Aparna, here. We also have our CHRO, Saurabh Gawil, on this call. Afterwards, the operator will open the bridge for Q&A with our management team. Before Shini starts, let me draw your attention to the fact that during this call, he may make certain forward-looking statements within the meaning of Private Securities Litigation Deform Act 1995. These statements are based on management's current expectations and are associated with uncertainties and risks, which may cause the actual results to differ materially for those expected. The uncertainties and disruptors are explained in our detailed filings with the SEC. WIPRO does not undertake any obligation to update the power-looking statements to reflect events and circumstances after the date of filing. The conference call will be archived and the transcript will be available on our website. With that, I would like to turn over the call to Shini.
Shini, over to you. Thank you, Vishak. Good evening. Demand environment has remained largely unchanged. Our clients remain focused on efficiency and productivity, while increasingly looking
to accelerate AI adoption and drive long-term value.
This balance between efficiency and growth is shaping demand. Let me begin with what we see in our priorities. In BFSI, we continue to see strong momentum.
Clients are focused on cost optimization,
legacy modernization, and scaling agentic AI across their enterprise. Digital native and new age firms are driving demand in our technology sector. Investments in custom silicon, design to manufacture, and physical AI
are creating opportunities across the engineering value chain. We also see growth emerging across AI model ecosystems.
From model training and evaluation, EMR, energy manufacturing and resources sector, we have seen some good wins in previous quarters, and those deals are. This sector continues to gain traction across markets. Specifically, I would like to call out PPS and engineering. In consumer sector, we are seeing good traction in CPG, travel, and transportation.
Our recent new wins and revenue from Olam deal
have also supported our performance in this sector, continues to be affected by policy changes.
At the same time, cost pressures across payers and providers are creating new outsourcing opportunities,
platform-based offerings, and including rising regulatory requirements, we are shaping our pipeline. Financial performance for the quarter, in quarter 2,
our IT services revenue stood at $2.61 billion, flat, sequentially, and up 0.6% year-on-year in constant currency. Our operating margin for the quarter was 16.5%,
an improvement of 0.5% compared to last year. Within our markets, three of our four SMUs, Strategic Market Units, reported sequentially. America's one declined sequentially due to client-specific issues and softness in healthcare. America's two group EMR with encouraging momentum in BFSI and year-on-year delivering led by BFSI, consumer, and EMR. Apnea maintained strong traction, growing sequentially and year-on-year. Growth was fueled by consumer, tech, and comms. Coming to deal wins and pipeline, this quarter, we closed $2.6
billion in total contract value and signed nine large deals.
Our bookings reflect a healthy mix of new businesses and expansion of existing engagement. Let me give you an example of a consulting-led AI-powered transformation deal. A global financial institution engaged Wipro to accelerate its transformation through an AI-enabled operating model. Through this engagement, we'll modernize software development, drive life cycle, and scale AI-powered ways of working, resulting in faster execution, broader AI and agile opportunities, including a large deal in energy last quarter, reflects growing impact of our consulting-led strategy in originating larger opportunities. Beyond large enterprises, we also see strong traction in deal wins and pipelines in the mid-market segment.
These organizations understand that AI can be a force multiplier in
scaling capabilities and redefining their competitive landscape. As an example, a global mid-market consumer products company led technology transformation by establishing an AI capability center in India.
Through this engagement, we will scale engineering and technology operations to support ERP modernization,
cloud-native platforms, and AI capabilities for our client, improve engineering productivity, We will continue to make these investments even when they create near-term margin headwinds. We are seeing a strategic position, expand addressable markets, and build a stronger foundation for future growth.
In April, we transitioned from traditional delivery models to AI-native enterprises.
We are making rapid forward 2,000 engineers, including FDE, forward deployed engineers. We are seeing growing success in outcome-based deals and driving non-linear growth. This investment is already delivering results. Let me share a few examples. One, an SLM deployment for a major U.S. implementation of an AI-powered digital plant for one of the largest petrochemical companies in the Middle East. And three, an enrollment and billing SLM deployment for a leading U.S. healthcare payer. In addition, we also built industry-specific SLMs for wealth management, insurance, healthcare, aviation, and asset-intensive industries. And these capabilities enable us to transform virtually. Any business workflow into an AI-native workflow, our clients unlock new levels of productivity, speed, and business value.
In AI, we also accelerated investment in AI services and solutions across five emerging AI growth teams.
AI data centers, AI foundry services, AI devices, and design to manufacturing position us well across the
full AI value chain and help us capture opportunities
that extend beyond traditional technology spend. Let me share our guidance for the next quarter. Q3 for us will remain impacted by seasonal furlough.
Social IT services revenue growth of minus 1.5% to
plus 0.5% in constant current. Despite a challenging macro environment, our business remains resilient.
We are very encouraged by emerging opportunities across markets. AI will expand new growth avenues and accelerate
demand for higher value transformation. In the momentum, we are seeing AI services.
Thank you, Srini. Good evening, everybody, and thank you for joining us. I'll share a quick update on the financial performance for quarter two, and after that, we can open it up for Q&A. Our ID services revenue grew 0.6% year-on-year in constant currency terms. Revenues were flat sequentially in constant currency terms. Our operating margins for the quarter were 16.5% and expansion of 0.5% sequentially. Operational improvements, repeat appreciation, offset by our continuing investments in business have been the underlying factors driving those improvements. We will work towards improving the margins even as we create a space for growth. In terms of SMU performance and sector performance, I'll share a few numbers. All of them are in constant currency terms. America's two grew 0.9% sequentially, declined 4.7% on a year-on-year basis. Europe grew 0.6% sequentially and grew 5.1% on a year-on-year basis. Acnea grew 3.1% sequentially and 13% on a year-on-year basis. At America's one business was soft and declined 2.1% sequentially and 2.7% on a year-on-year basis. From a sector standpoint, EFSI grew 1% sequentially and 1.3% on a year-on-year basis. Consumer grew 2.6% sequentially and 6% on a year-on-year basis. Energy, manufacturing, and resources grew 1% sequentially while declining 6% year-on-year. Technology and communications declined 2.6% sequentially, while they continue to grow on a year-on-year basis at 7%. Health declined 3.8% sequentially and declined 6.5% on a year-on-year basis. In terms of other key financial parameters, our net other income, which includes the interest income, declined 68% sequentially, primarily because the investable surplus reduced quarter-on-quarter owing to completion of a buyback in June 2026. As a result of the lower other income, our net income was reported at Rs32 billion for the quarter. It declined sequentially by 5%. However, the EPS, which is the right metric given that we had completed a buyback, for the quarter was at Rs3.23, which it increased 0.9% sequentially and 4.2% on a year-on-year basis. We remain relentless in our cash flow generation. Quarter 2 is yet another quarter of robust operating cash flows. We generated 166% of net income. With this, our gross cash as of 30th September was at $4.6 billion. Our effective tax rate was at 23.9%, flattish compared to same quarter last year. Accounting yield for the average investments held in India was at 7.1%. In terms of the guidance, like Srini said, we expect our revenues to be in the range of $2.571 billion to $2.625 billion. This translates to a sequential guidance of negative 1.5% to a positive 0.5% in constant currency terms. We can now open the line up for Q&A.
Operator
Thank you very much. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take our first question from the line of Girish Pai from B.O.B. Capital Markets. Please go ahead.
Yeah, thanks for the opportunity. I want to ask about the TCV number, which is down quarter-on-quarter quite a bit, both from a large deal and a total TCV perspective. Were these numbers up to your expectations? If not, what exactly transpired in the quarter?
As far as our TCV of quarter-two is concerned, We had a few deals where the contract could not be signed on time, because of which they are slipping to this quarter. And both the deals that we could not sign will get signed. As far as we are concerned, the pipeline is very robust. And in addition to these two deals, we have a very strong pipeline for quarter three itself. And we are very optimistic of better closure in quarter three as far as TTV is concerned, Girish.
Okay. The other thing I want to ask you is regarding GCCs. There seems to be a tendency of some customers selling off their GCCs to vendors like you, and I've seen this happen with HCL Tech and TCS and all that. So are there many more such deals in the pipeline? I mean, are there many more customers wanting to sell off the GCCs for whatever reason?
So, Girish, if you look at the GCCs, there are four opportunity areas. One is the green field where the client has already has GCC and looks at companies like us to come and help them to enhance and bring in AI transformation to that. Second, there are downfield where, you know, we actually help the clients, you know, enhance their capabilities. And then there are some clients who would want to monetize their GTC. As far as we are concerned, we partner with our clients and all, whether it's Greenfield, Brownfield, or any monetization opportunities.
Okay. Lastly, when is the salary increase going to happen?
Did you note, we just gave a salary increase effective 1st March 2026. So, it's been just a few months since we rolled out. So, right now, it's not under consideration.
Operator
Thank you. We'll take our next question from the line of Sudhir Guntupalli from Kotak Mahindra AMC. Please go ahead.
Hi, Srin, thanks for the opportunity. My question is, as the AI tech diffusion happens from the hardware layer downstream into consulting and services, I would like to ask...
Hey, Srin, sorry to interrupt you. We could not hear you properly, Srin.
Yeah, I hope I'm clear now.
Yeah, yeah. No, Shani, thanks for the opportunity. And my question is, as the AI tech diffusion happens from hardware layer downstream into consulting and services, and the fact that most of the players now look to be excessively leveraged in the overall ecosystem, any thoughts on using your cash-rich balance sheet to make, you know, very big bank acquisitions like we had done in the cloud wave, beat the likes of Capco, Rising, etc.? So, any thoughts of using our net cash balance sheets this time around, which could be a source of your competitive advantage?
So, Sudhir, you know, if you look at broadly, our growth strategy is both organic and inorganic. As far as the inorganic play is concerned, we look for opportunities within the sectors, our priority sectors and the markets that we go after. As far as acquisitions are concerned, our strategy will continue to be the same. We will look at opportunities that can enhance our value. Just to give you a context here, if you look at the acquisition that we made with the Harman DTS, it actually gave us capabilities around design to manufacture and connected services. If you look at as part of the Overlamp deal, we actually acquired MindSpin, And that has given us food and agri-fist sector, supply chain, and also farm-to-fork process.
So, we will look at those opportunities, Sudhir, and constantly look out for that.
Operator
Thank you. We'll take our next question from the line of Ravi Menon from Access Capital. Please go ahead.
Thank you for the opportunity. So, you know, when the downturn in spending started in BFSI, you guys were the first to be impacted because of the high exposure to consulting. Now, when the spending is starting to pick up, at least it seems like it from the results of your peers. You know, BFSI seems to be doing well. You're not seeing to get the full benefit of that. Is there anything that's holding us back, you know, any client-specific issues, anything like that in BFSI? Or is consulting not really picking up, and these are more vendor consultation deals that others have seen?
So, Ravi, if you look at BFSI from a Wipro perspective, we grew 1% sequentially and 1.3% on a year-on-year basis. We had some good wins in this quarter, that is, quarter two. And, you know, we actually won a consulting-led transmission deal that I covered in my opening remarks. One of the mega deals we had announced earlier, where ramp-up was delayed, is now starting to ramp up. Additionally, if you remember, a specific customer in BFSI in Europe had earlier decided to move part of the work to the captive, which impacted our revenue. The good news is that we are now seeing good momentum building up with this customer, and it is reflecting in the growth numbers in the current quarter and going forward. Also, Capco, which is our consulting arm for BFSI, has done a very good performance, including growth across continent, APMEA, Continental Europe, and UK. So, that's where we are. As far as BFSI market perspective, Ravi, technology spending in BFSI remains. AI and data investment are growing meaningfully, And, you know, some of them are through relocation, and some of them are through productivity takeout. So, and again, across bank, you know, BFSI segment, starting with the banking, a lot of work and a lot of opportunities for us around core application and data modernization. You know, like, you know, it also includes all this cloud migration. You know, some of the clients are looking for application rationalization, creating, you know, AI-ready data foundation. So, and to me, BFSI is, we have a very strong pipeline, and BFSI as a sector remains very rich.
Thanks, I really appreciate that. Well, in the last, I would say, maybe two or three years, we have seen, you know, growth in one or two quarters, when we have a large deal, maybe we have a consolidation deal, and I guess since, you know, the overall spending environment was muted, we've seen declines in other quarters. And do you think now we have a clear trend where, at least in BFSI, we see consistent growth in the coming quarters?
Like I said, you know, I'm very optimistic about BFSI as a sector for us and for the industry as well.
Thanks, Anastasia. And so would you expect this to lead growth for you in the coming year? Would you expect this vertical to lead growth for you in the coming year? Or would you expect one of the other verticals to actually be the growth leader within your portfolio?
So, you know, Ravi, I'll let my team compete. It is between BFSI and tech.
All right. Thank you, Viri. Appreciate that. Best of luck.
Operator
Thank you. Before we take the next question, we'd like to remind participants, to ask a question, please press star and one on your phone. Next question is from the line of Sandeep Shah from Equirus Security. Please go ahead.
Yeah, thanks for the opportunity. Just some clarification. Sir, you earlier alluded in the earlier quarter of things called there are some client-specific issues. So, any status update on the same? Do you believe largely behind or may have some impact in the second half? Second, the guidance for this quarter will have some inorganic acquisition-led growth that have been built through alpha. So, can you quantify that? And even for the 2Q, what was the organic growth?
So, Sandeep, I just wanted to reiterate the client-specific issues that we had highlighted are largely behind us, and, you know, effective Q3, we should be, you know, a large part of it should be done. I think your second question was around acquisition and inorganic growth. We have referred to this in the past. When we spoke of MindStrength, it was actually an acquisition that we did in the context of a deal because we found the capabilities to be something that could add value to Zipro at an overall basis as well. And that was the reason why we did it as a part of a structured large deal with Dolan. We did have one month revenue that came through. The other one that you are referring to in terms of AlphaNet is more of like a talking within a large client, where we are looking at consolidating vendors out. We're not calling out the impact of that specifically. It was not very material.
Okay. And just a last question. You also said that going forward, margins may keep increasing despite investment. So, do you believe we may again by Q4 be in the target range of 17, 17 and a half?
So, Sandeep, we are endeavoured to continuously improve margins from where we are. Like I said, we rolled out a hike and therefore the margins have come down and, you know, the operational improvements will continue to kick in through the quarters and that does help the margins go up. We will also, you know, have to invest for growth. There are two areas. One is, of course, in terms of, you know, the AI native unit that we have called out. That will be a place where they will continue to invest. And we will invest in our clients and our business as in their meetings. So, yes, I do think that, you know, we would like to get back to the band as quickly as possible, but we are not putting a timeline out there.
So, thanks and all of us.
Operator
Thank you, Saseep. Next question is from the line of Girish Pai from B.O.B. Capital Markets. Please go ahead.
Yeah, thanks for the follow-up opportunity. Saseep, this is more to do with the industry, not so much about WIPRO. What do you see as the outlook for demand over the next 12 months? Is it better than what you saw in the last 12 months? That is question number one. Second, the deflationary pressures. How long do you think this will continue? Are we in the early stages or the middle of the deflationary cycle or we are at the end?
Like I said, there is no change in the demand environment.
However, the client discussions today are increasingly about accelerating AI adoption, innovation, AI deployment, and also, you know, innovation, you know, many of our clients are innovating, leveraging AI. The idea for them is to clearly create long-term business value and also look at the return investment. So, from that perspective, the demand environment continues and AI continues to accelerate, and we see a lot more opportunities around AI. However, cost optimization and vendor consolidation continue to create a lot of the other drivers for our clients. In this context, what I would say is I would look into our pipeline today, the pipeline for quarter three, quarter four, and year ahead. It is extremely strong. And like I said, quarter three, we should have a very good booking based on what we see and some of the deals that could not be closed in, the papers could not We signed in last quarter. They will also move in. So, net-net, I would say we also need to look at from sector to sector. Like I said, BFSI, I was optimistic. BFSI and tech would be the two sectors who could compete for the growth as a Wipro. And within tech space, there are multiple opportunities that we have. I know some of them are, you know, AI, you know, moving beyond software and becoming part of infrastructure, you know, products, and also physical operations of the business. So, you know, if you look at AI data centers or AI factories or AI boundary services, also, you know, in this segment, we are seeing good fraction. That's why I called out physical AI and autonomous business aspects because we are helping bring AI into machines and physical operations by applying AI to machines and the real-world operations, if you ask me. This will help our clients not just from a productivity but also safety and responsiveness. So this is another sector we continue to grow in addition to BFF side. I talked about EMR, you know, it was a good quarter, and we are seeing very strong traction, especially in the energy segment, you know, within EMR, and, you know, while EMR has overall growth sequentially, and, you know, we see this traction with some of the wind based on the previous quarter. So, again, this is another segment that, you know, we continue to see traction because, you know, we did take some time to start bringing growth back here, and now the growth has come in. So, it goes, Girish, you know, goes by sector to sector, and also goes by market to market. You know, if you look at U.S. economy, very strong, and I think we continue to see a strong pipeline out there. But Europe, despite what's going on, you know, some of the countries there are, you know, the clients are definitely looking at not just the cost optimization, Vendek consolidation, they are also re-looking at their AI strategy,
sovereign AI, specifically in the context of the geopolitics.
And the question on deflation, where are we in the cycle?
We've spoken about this in the past, Gileash. You know, typically, our contracts are about two to two and a half years in terms of the average tenor, right? And we've been in this cycle for at least the last two years, or thereabouts, one and a half to two years. So, in some sense, a lot of the contracts that we've had have been refreshed and renewed. So, you know, in some sense that we should be at that inflection curve in a few quarters. That's the way we read it. And, yeah.
Operator
Thank you. We'll take our next question from the line of Vibhor Singal from Nuwa Myquity. Please go ahead.
Hi, thanks for taking my question. So, two quick questions from my side. So, Sheree, I don't know, I'm sorry, I've got disconnected in between, so I've never said that before. On the healthcare side, just wanted to pick your brains on, we saw weakness in this quarter, and it's been kind of continuing for some time for us. Healthcare is a vertical where I think a lot of companies in our space are very excited about opening up their new, basically, verticals in terms of healthcare, which is suggesting to us that there is very little outsourcing penetration in this segment. So how do, what are our takeaways in the sector, reasons for our slightly lower growth or decline in this quarter, and how do you see the vertical going over the next few quarters?
Thanks, Vibhar. As far as the health as a sector, especially in the U.S., it is impacted by policy changes, and large U.S. payers, despite this very intensely focused on cost takeout, the membership growth is slowing down, and their margins are remaining, continues to remain under pressure. Thereby, the payers are tightening discretionary spend and prioritizing AI, automation, and in fact, you know, some of the compliance aspects of it and also productivity-led transformation initiatives. If you look at regulatory mandates, like this program, Medicaid, you know, Medicaid aspects, the prior authorization reforms, I think these are also, you know, getting into the mix as far as we are concerned. However, from a context of Wipro, we have built our end-to-end platform-based services, which again, obviously, are resonating well with our customers, and this is the major differentiator because we are able to bring in ACA, Medicare, and Medicaid together in a single platform. We are also seeing demand from now who are looking at outsourcing IT services, sustained cost pressures that they're going through. We expect health to benefit an account of seasonality in Q3, though not to the extent seen previous years, Vibor.
Got it, got it. Sini, that's really helpful. And just one last question on the deal win side. So, I think the deal win in this quarter, I know you alluded to that in the opening remarks. So, was it mainly because of the, I mean, some slippages that we saw in this quarter, Maybe this could possibly come in the next quarter, or as I think we've kind of heard a lot of companies pointed out that in this quarter we had some pullback in times and some slow decision-making because of the Gulf War. So if we just throw some color on that, that would be really helpful.
Sure, Vibhar. We had confirmed orders in quarter two. Unfortunately, some paperwork did not get signed. So, those deals, we will pick it up in quarter three. So, they are not going anywhere. There is no impact on that aspect. So, it is good news that they are getting signed now. Also, like I said, the pipeline for quarter three is very robust. We are very optimistic on the deals that we have at this point in time. And these are all good deals and should give us the revenue. You know, once we close these deals, it should give us revenue upside in quarter four as well. So the focus right now for us is to close these quarter three teams. And all I can tell you is that it is robust and it is positive.
Got it, got it, got it. Great. Thank you so much for taking my question, Shini, and I wish you all the best.
Operator
Thank you. Next question is from the line of Ashwin Mertha from Ambit Capital. Please go ahead.
Hi, thanks for the opportunity. Just to follow up with what Vibor asked. So, you've seen health exchange enrollments drop by almost 18% in June. We typically used to do this business. So, I just want to get a sense on how big is this business in our healthcare vertical, and how do you see this playing out in the December quarter? Because typically, that's where the peak enrollment season kicks in. And the second question was in terms of, like, we are talking about positivity in terms of deal flow, So, in that context, the 6,500 plus people being cut in this quarter, any particular segment or where these cuts have happened, any color on that? And given the improved deal flow, do you think the fourth quarter will be a positive growth quarter for us?
Okay, Ashwin, thank you for your question. So let me take some of the insights, and if I missed anything, you just alert me again. In terms of the bookings, and therefore, will our quarter four outlook be better? You know, that is the visibility that we have at the moment. We are very confident about the deal pipeline flow, and like Shini said, we're expecting to close some of those deals in the early half of this quarter, and that should increase our confidence of, you know, increase the confidence for the outlook for Q4 for sure. Your other question was around the health enrollment.
As far as we are concerned, we don't call out a specific number, Ashwin. We just give the overall health numbers, and like I said, we did have an impact because of some of the policy-related changes that happened to some of the U.S. payers, and the idea here is to look at proactively creating Thank you.
And just a follow-up, in terms of the headcount cuts this quarter, what will the drive for that?
If you look at it, year-on-year plattish, particularly in this quarter, if you look at it, first half, we don't go on campus. So, you know, that's the thing. We'll be going even the volume growth in. So, I think it'll even out as we move forward. We also drive productivity from AI projects. That is also coming. I hope for recognition.
Thanks a lot, and all the best.
Operator
Next question is from the line of Dipesh Mehta from MK Global. Please go ahead.
Yeah, thanks for the opportunity. A couple of questions. First of all, just to get sense about furlough, how do you expect furlough to play out this year? Second question is about the two deals which you referred, which got delayed in terms of signing. Whether we close both the deal in terms of signing this quarter or it is able to be signed kind of thing. And last is about, let's say, if I look overall vertical perspective, except health, broadly we are seeing growth momentum recovery and on the positive side. Health also, we are hopeful of things to improve. Considering broad-based growth returning, are we confident, let's say, sequential growth resuming for us in maybe a couple of quarters down the line, if you can provide that sense? Thank you.
So, you know, in terms of the furlough, they are from every quarter three for us, and that's the seasonality that plays out, both in terms of lower number of working days and the furlough. They are not unusual. They are expected to be broadly in line with what was there last year. That's at least what we've baked into the virus, and we will try and optimize from here on. Your second question, Dipesh, was on the large deal wins, whether they've been already closed. Like Srini said, they are in the progress of being signed, and we are confident of securing both the deals, and we will share that with you when we meet next in January. Your other question was on whether we can be confident of sequential growth in quarters to come. That is the endeavor. We would certainly be trying to grow the business consistently, sequentially, in terms of the organic growth, and that will be the endeavor. You know, we don't guide for the year. We guide only for the quarter, but based on the pipeline and the confidence that we have, we will share more with you when we meet in January.
Operator
Thank you. We'll take our last question from the line of Gaurav Rateria from Morgan Stanley. Please go ahead.
Hi, thank you for taking my question. Shreen, just wanted to understand, you know, various service lines that we have, at what stage of the journey we are in in terms of transformation led by the AI infusion that we are doing across the board.
If you look at from a strategy perspective, we called out consulting late AI for Wipro. Second, we called out Wipro Intelligence Stacks from an execution perspective. We had three categories. BuildAI, which is supported by our Vega platform. This is around the software development lifecycle, product development lifecycle. We called out RunAI, which is more on run and operate, which is the Wings platform that we have. This helps our clients to improve their productivity, velocity, and experience as well. And then we called out Reimagine AI. In Reimagine AI, there are three big components. One is AI consulting and advisory. One of the examples I talked about is the win that we had through Capco in one of the large PFS client. And now you actually follow it through downstream revenue. Second, I talked about new AI services where we are investing, and that continues to grow for us because these are the services that were not existent in a few quarters back, but they are really picking up because AI is also evolving. The adoption and deployment of AI is also priority for our clients. So this part really helps them. And the third piece is our AI-native unit, where we are building industry and cross-industry platforms, specifically in pure industry segment, whether it's to do with aviation, to do with healthcare, to do with telecom, right, and to do with, you know, mortgage, to do with insurance, and so on and so forth. So, these are platform play. It's like software as a service or such a combination of platform for software and services, and we are seeing a very good fraction here because we are reimagining the end-to-end process with AI for our clients, and this platform actually fits in where they can actually transform their business processes. So, NetNet, I think, you know, AI is really, you know, helping us in the context of pipeline and also in the context of winning them in the marketplace.
Got it. Got it. The second question is, you know, this 3Q guidance has had an impact of probably furloughs and some client-specific challenges that are, you know, flowing through in 3Q as well. Is there also an element of the deals getting pushed out, which kind of has an impact on the guidance in 3Q? And if the deal begins to get bunched up in 3Q, could that have a positive influence on the 4Q revenue conversion metrics?
Yes, Gaurav. The short answer to that is yes. It will have a positive impact on the quarter 4 outlook for revenue. To your other point on whether the quarter three guidance includes the impact of some of these large deals getting pushed, you know, we guide in a range, right? Obviously, and what you should look at the guidance factoring and the majority, I mean, what is really largely leading this is basically the furloughs and lower working days. And outside of that, you know, we will have a range to operate, and assuming we are able to convert some of these deals, you know, it should also help in in-quarter execution, of course.
Got it. Thank you so much. All the very best.
Operator
Thank you. I now hand the conference back to Mr. Abhishek Jain for closing comments. Over to you.
Thank you all for joining the call. In case we could not take any questions, please feel free to reach out to the Invested Relations team. Have a nice day.
Operator
Thank you. On behalf of the ProLimatives that concludes this conference, thank you all for joining us, and you may now disconnect your lines.
