Wipro Limited

Wipro reported Q1 IT services revenue of $2.61 billion, up 0.9% year over year and down 1.2% sequentially in constant currency. Operating margin was 16%, down 1.2 percentage points year over year. Net income was INR 33.6 billion and EPS was INR 3.2, both up 0.6% year over year. Order bookings were $3.4 billion, including $1.6 billion of large deal bookings across 13 large deals. Operating cash flow was 98% of net income, gross cash including investments was $4.3 billion, and the company declared an interim dividend of INR 2. For Q2, IT Services revenue guidance is $2.574 billion to $2.627 billion, equal to sequential growth of -1.5% to +0.5% in constant currency.

Srinivas Pallia said the macro backdrop is resilient but still uncertain, with clients spending more selectively and taking longer to decide. He emphasized that AI is a structural opportunity, not a threat to the market, and said Wipro is pivoting to an AI-first, consulting-led strategy built around Wipro Intelligence, WINGS, and new AI-native platforms. He was upbeat on the pipeline and highlighted traction in BFSI, technology and communications, plus new opportunities from AI advisory, data priming, agent management and sovereign AI.

Aparna Iyer said the 16% operating margin reflected incremental salary increases, ramp-up of large deals won earlier, and ongoing AI investments, partly offset by rupee depreciation and operating efficiencies. She noted net income of INR 33.6 billion and EPS of INR 3.2, both up 0.6% year over year, operating cash flow at 98% of net income, gross cash of $4.3 billion, and an ETR of 22.6% versus 21.6% a year ago. She also reiterated the Q2 revenue guide and said the board declared an interim dividend of INR 2, with more than $3 billion returned to shareholders over the last year.

Analysts focused on headcount, BFSI softness, healthcare underperformance, margin recovery, and whether AI could erode existing business. Management said headcount outside Mindsprint was down by 2,500, BFSI weakness was driven by slower ramp-ups and delayed discretionary spend, and client in-sourcing is now behind them. On healthcare, management said U.S. payer and provider budgets remain pressured, but AI, automation, claims, contact center and compliance work are creating new opportunities. On AI economics, they said margins depend on deal structure: traditional cost-takeout deals may have forward productivity baked in, while newer AI advisory, data and platform work should be more margin-accretive.