Wipro Limited

Wipro’s IT services revenue for Q1 was $2.61 billion in constant currency, up 0.9% year-on-year and down 1.2% sequentially. Operating margin was 16%, down 1.2 percentage points year-on-year. Net income was INR 33.6 billion and EPS was INR 3.2, both up 0.6% year-on-year. Order bookings were $3.4 billion, including $1.6 billion of large deal bookings, and operating cash flow was 98% of net income. Gross cash including investments was $4.3 billion and the average investment yield in India was 7.2%. For Q2, IT services revenue guidance is $2.574 billion to $2.627 billion, or sequential constant-currency growth of minus 1.5% to plus 0.5%.

Srinivas Pallia framed the macro environment as resilient but still uncertain, with clients spending more selectively and taking longer to decide, even as AI, cloud, modernization and cybersecurity remain priorities. He said Wipro is pursuing a consulting-led, AI-powered strategy and emphasized that AI is expanding the market rather than shrinking it. He repeatedly pointed to WINGS, the AI native unit, Wipro Ventures, innovation networks and ecosystem partnerships as the core of the company’s pivot, while also acknowledging that the company is investing for the future and accepting some near-term margin dilution.

Aparna Iyer said Q1 revenue growth of 0.9% year-on-year and a 1.2% sequential decline were within guidance, while margin at 16% was hurt by the incremental impact of salary increases, ramp-up of earlier large deals and ongoing AI investments, partly offset by rupee depreciation and operating efficiencies. She highlighted net income of INR 33.6 billion, EPS of INR 3.2, operating cash flow at 98% of net income, and gross cash including investments of $4.3 billion. She also said the board declared an interim dividend of INR 2 and that the company returned over $3 billion to shareholders over the last year.

Analysts focused on headcount trends, BFSI softness, healthcare weakness, margin recovery and the competitive impact of AI-led deals. Management said headcount excluding Mindsprint was down 2,500 quarter-on-quarter, BFSI weakness was driven by slower ramp-up of large deals and slower discretionary spending, and client insourcing in BFSI is now behind them. On margins, management said the path back to the 17% to 17.5% narrow band will be gradual and depends on operating levers, AI investments and deal mix. They also said healthcare is under pressure from U.S. payer/provider budget constraints, but AI, automation and compliance work could create future opportunities.