Wipro Ltd, India’s fourth-largest IT services company, reported a mixed first quarter as clients focused on cost optimization amid macroeconomic uncertainty, though the firm secured its strongest booking performance in years.
The Bangalore-based company posted gross revenue of $2.58 billion for the quarter ended June 30, down 1.6% sequentially but up 0.8% year-over-year. IT services revenue declined 0.3% quarter-on-quarter to $2.59 billion, marking a 1.5% annual increase.
However, Wipro’s deal-winning momentum accelerated sharply, with total bookings surging 50.7% annually to $4.97 billion in constant currency terms. Large deal bookings more than doubled year-over-year to $2.67 billion, driven by 16 major contracts including two mega deals.
“In a quarter shaped by macroeconomic uncertainty, clients prioritised efficiency and cost optimization,” said CEO Srini Pallia. “AI is no longer experimental – it’s central to our clients’ strategies, and we are delivering real impact at scale.”
The company’s operating margin in IT services held steady at 17.3%, contracting slightly by 0.2 percentage points sequentially but expanding 0.8 percentage points annually. Net income rose 10.9% year-over-year to $388.4 million, though it declined 6.7% from the previous quarter.
Wipro declared an interim dividend of 5 rupees per share and reported operating cash flows of $479.6 million, representing 123.2% of net income. The company’s voluntary attrition rate improved to 15.1% on a trailing 12-month basis.
For the September quarter, Wipro guided IT services revenue between $2.56 billion and $2.61 billion, indicating flat to modest 1% sequential growth in constant currency terms. This cautious outlook reflects continued client budget scrutiny across key markets.
The results highlight the dual reality facing Indian IT companies: while demand for digital transformation and artificial intelligence services remains robust, clients are increasingly selective about spending amid global economic headwinds.
Wipro’s strong bookings performance, particularly in large deals, suggests the company is well-positioned to capitalize when client spending normalizes. The firm’s focus on AI implementation and cost optimization services aligns with current client priorities.
Shares of Wipro have gained approximately 12% year-to-date, outperforming the broader Nifty IT index. The company employs over 230,000 people globally and serves clients across banking, healthcare, manufacturing and other sectors.
