Wipro projects a revenue growth of -1.5% to 0.5% for the second quarter, signaling persistent pressure in client spending. In the first quarter, the company reported a modest profit of ₹3,352 crore, which missed market estimates. Investors may monitor how the focus on AI-led consulting helps stabilize margins amid cautious demand across the IT sector.
Wipro Ltd. has issued a cautious revenue outlook for the second quarter of the current fiscal year, projecting sequential growth to remain between -1.5% and 0.5% in constant currency terms. This forecast highlights the ongoing pressure in the global IT services sector, where clients are increasingly selective with their technology spending, prioritizing operational efficiency and AI integration over broad discretionary projects.
Q1 Financials and Market Performance
For the first quarter ending June 2026, Wipro reported a consolidated net profit of ₹3,352 crore. While this represents a marginal 0.6% increase compared to the same period last year, it did not meet the consensus expectation of ₹3,442 crore. Consolidated revenue for the quarter reached ₹24,479 crore, growing 10.6% year-on-year, but also falling short of the ₹24,776 crore estimated by market analysts. To reward shareholders, the board has approved an interim dividend of ₹2 per equity share.
Order Book and Operational Metrics
Total bookings for the quarter stood at $3.4 billion, reflecting a 2.4% sequential decline, though large deal bookings demonstrated resilience with a 12.9% sequential increase to $1.6 billion. Maintaining a strong pipeline of large deals is often considered critical for long-term revenue visibility, especially in a slow-growth environment. Regarding human resources, the company reported an attrition rate of 13.9%, largely unchanged from the 13.8% recorded in the previous quarter. Employee utilization, excluding trainees, saw a slight improvement to 83.6% from 83.5%, indicating that the company is managing its current workforce capacity tightly.
Strategic Pivot Toward AI
Management, led by CEO Srinivas Pallia, has emphasized a strategic shift toward consulting-led and AI-powered service models. The company is investing significantly in these priority areas to help clients integrate artificial intelligence into their businesses. While these investments are intended to drive future productivity and resilience, CFO Aparna C. Iyer noted that they could lead to near-term margin volatility. This indicates that while the company is positioning itself for potential long-term growth, current profitability may remain under pressure from higher operating and strategic costs.
Investors will likely track whether the company can successfully convert its large deal pipeline into actual revenue growth in the coming quarters. Key areas to monitor include the sustainability of operating margins as the firm continues its investment cycle and whether the demand environment for IT services begins to stabilize as clients move beyond initial AI experimentation phases.