Wipro NYSE: WIT reported modest year-over-year growth in its fiscal first quarter IT services revenue while management highlighted continued pressure from cautious client spending, longer decision cycles and investment in artificial intelligence capabilities.
On the company’s Q1 FY 2027 earnings call, Chief Executive Officer and Managing Director Srinivas Pallia said the macro environment remains “resilient,” but uncertainty is still influencing client decisions. He said technology spending has not stopped, but clients are applying more rigor to investments and focusing on areas such as AI, data, cloud, modernization, cybersecurity and productivity-led transformation.
“The AI disruption is expanding the market, not shrinking it,” Pallia said. He added that clients are increasingly focused on the productivity gains and business outcomes tied to AI spending.
Revenue Declines Sequentially, Margins Fall
Wipro’s IT services revenue for the quarter was $2.61 billion, up 0.9% year over year in constant currency and down 1.2% sequentially. Chief Financial Officer Aparna Iyer said the performance was within the company’s guided range.
Operating margin for IT services was 16%, down 1.2 percentage points from a year earlier. Iyer attributed the decline to the incremental impact of salary increases, the ramp-up of large deals won earlier and ongoing investments in AI. These pressures were partially offset by rupee depreciation benefits and operational efficiencies.
Net income for the quarter was INR 33.6 billion, while earnings per share were INR 3.2. Both increased 0.6% year over year, according to Iyer. Operating cash flow stood at 98% of net income.
The company’s board declared an interim dividend of INR 2. Iyer said that including the dividend, Wipro would have returned more than $3 billion in cash to shareholders over the last year.
Regional Performance Mixed as Americas Remains Soft
Pallia said the Americas region remained soft, declining both sequentially and year over year. However, he pointed to momentum in the technology and communication sector, some wins in the consumer sector and improving momentum in BFSI heading into the second quarter.
APMEA revenue grew both sequentially and year over year, with strength in BFSI and consumer. Europe grew year over year, supported by traction in BFSI, technology and communication, though Pallia said energy, manufacturing and resources remained soft.
Iyer provided additional constant-currency detail by strategic market unit:
- Americas 1 was flat year over year and declined 2.3% sequentially.
- Americas 2 declined 7.3% year over year and 2.5% sequentially.
- Europe grew 6% year over year and declined 0.9% sequentially.
- APMEA grew 13.5% year over year and 4.4% sequentially.
By sector, BFSI grew 2.6% year over year but declined 1.2% sequentially. Consumer grew 1.9% year over year and 0.7% sequentially, while technology and communication grew 10.8% year over year and 0.2% sequentially. Health declined 3% year over year, and energy, manufacturing and resources declined 8.9% year over year.
Large Deals Total $1.6 Billion
Wipro reported total order bookings of $3.4 billion for the quarter, including $1.6 billion in large deal bookings across 13 large deals.
Pallia highlighted a deal with a global animal healthcare provider to modernize and manage digital operations across its hospital and clinic network. He said Wipro would use Wipro Intelligence to help transform service operations, improve productivity and support predictive issue prevention.
He also cited a deal with a European specialty chemicals company to run and transform its application landscape using AI-led capabilities through Winx, part of Wipro Intelligence. Pallia said the work is aimed at improving automation, delivery efficiency and service quality while reducing operating costs.
During the analyst question-and-answer session, Pallia said some deal decisions had slipped into the second quarter, but he described the pipeline as healthy. He cited strength in BFSI in the Americas and Europe, technology and communication in the Americas, and energy, manufacturing and resources in Europe and the Americas.
AI Investment Remains Central to Strategy
Management repeatedly emphasized AI as a central strategic focus. Pallia said Wipro is pursuing a “consulting-led AI-powered strategy” and has moved from strategy to execution in its AI-Native Business & Platforms Unit, which was launched in the prior quarter.
He said Wipro is building AI-powered industry platforms, developing AI-native business models and strengthening partnerships across the AI ecosystem. The company also recently launched an Applied AI Center of Excellence for Claude models powered by Anthropic. Pallia said this is intended to help clients adopt frontier AI capabilities while maintaining enterprise-grade controls and governance.
Pallia described several client examples, including using multi-agent AI systems for a healthcare client to reduce provider enrollment processing times by up to 70% and automate manual effort by up to 90%. He also cited AI work in finance and procurement, AI model evaluation, pharmacovigilance and enterprise robotics strategy.
In response to analyst questions, Pallia said AI is creating new service opportunities in areas such as AI advisory, change management, data preparation, agent implementation, MLOps, sovereign AI and responsible AI. He also said productivity gains in software development vary depending on whether work involves greenfield projects or complex legacy code.
Second-Quarter Guidance Calls for Flat to Lower Revenue
For the second quarter, Wipro expects IT services revenue between $2.574 billion and $2.627 billion. That translates to sequential growth of negative 1.5% to positive 0.5% in constant currency terms.
Management declined to provide a specific timeline for returning margins to its previously stated 17% to 17.5% “narrow band.” Pallia said Wipro remains focused on operational levers such as automation, productivity, utilization and pyramid restructuring, while continuing to invest in AI capabilities.
On headcount, Iyer said the company’s reported employee additions included workers who joined through the Mindsprint acquisition. Excluding Mindsprint, headcount declined by 2,500 during the quarter, Pallia added. Iyer also said the impact from client insourcing in BFSI discussed in earlier calls is now behind the company.
Pallia said Wipro is navigating macro uncertainty and geopolitical instability with a focus on disciplined execution, helping clients manage complexity and building sustainable value for stakeholders.
About Wipro NYSE: WIT
Wipro Limited NYSE: WIT is an Indian multinational corporation that provides information technology, consulting and business process services. Headquartered in Bengaluru, India, the company traces its origins to 1945 when it was founded as Western India Vegetable Products and later diversified into technology and IT services. Today Wipro positions itself as a provider of enterprise IT solutions and digital transformation services for large and mid-sized organizations across multiple industries.
The company's service portfolio includes application development and maintenance, cloud and infrastructure services, data analytics and AI, cybersecurity, digital consulting, product engineering and research and development, as well as business process services.
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