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 booking totaled $3.4 billion, including $1.6 billion of large deal bookings. For Q2, IT Services revenue is guided at $2.574 billion to $2.627 billion, implying sequential constant-currency growth of -1.5% to +0.5%.

Srinivas Pallia said the macro backdrop is resilient but clients are being more selective, with spending focused on AI, data, cloud, modernization and cybersecurity. He framed AI as a structural opportunity and said Wipro is pivoting to an AI-first, consulting-led strategy, with WINGS, the AI native unit, innovation networks and ecosystem partnerships at the center. His tone was confident on longer-term opportunity but cautious on near-term demand and timing.

Aparna Iyer said the 16% operating margin was down 1.2 percentage points year over year mainly because of salary increases, the ramp-up of large deals won earlier, and ongoing AI investments, partly offset by rupee depreciation and operational efficiencies. She noted operating cash flow was 98% of net income, gross cash including investments was $4.3 billion, the ETR was 22.6%, and the board declared an interim dividend of INR 2. She also said Wipro expects to return in excess of $3 billion in cash to shareholders over the last year and reiterated the Q2 revenue guidance range.

Analysts focused on headcount trends, BFSI softness, healthcare and energy weakness, the outlook for margins, and how AI changes deal economics. Management said headcount excluding Mindsprint actually fell by 2,500, BFSI weakness was tied to slower ramp-up of large deals and delayed discretionary spending, and in-sourcing impact is now behind them. On margins, management said the path back to the 17% to 17.5% narrow band should be progressive, but timing is hard to predict because Wipro is still investing in AI capabilities and future platforms.