Wipro (NYSE:WIT) reported modest year-over-year growth in its IT services business for the first quarter of fiscal 2027, while sequential revenue declined and margins fell as the company absorbed wage increases, large deal ramp-ups and continued investments in artificial intelligence.
Chief Executive Officer and Managing Director Srini Pallia said the broader macro environment “remains resilient,” but uncertainty continues to influence client decision-making. He said technology spending has not slowed, but has become more focused, with clients investing in AI, data, cloud, modernization, cybersecurity and productivity-led transformation.
Revenue Declines Sequentially, Margins Fall
Wipro said IT services revenue for the quarter was $2.61 billion, up 0.9% year over year in constant currency terms and down 1.2% sequentially. Chief Financial Officer Aparna Iyer said the sequential decline was within the company’s guided range. In reported currency terms, revenue declined 1.4% sequentially.
Operating margin for the IT services segment was 16.0%, down 1.2 percentage points from a year earlier. Iyer attributed the margin decline to the incremental impact of salary increases that took effect March 1, ramp-ups of large deals won earlier and ongoing investments in AI. These were partly 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 rose 0.6% year over year. Operating cash flow was 98% of net income, and gross cash stood at $4.3 billion as of June 30, 2026. The company’s effective tax rate was 22.6%, compared with 21.6% in the same quarter last year.
Wipro’s board declared an interim dividend of INR 2 per share. Iyer said that including the dividend and payouts over the past year, the company returned more than $3 billion in cash over the last four quarters.
Regional Performance Mixed
Pallia said the Americas remained soft, declining both sequentially and year over year, though he pointed to momentum in technology and communications and “good wins” in the consumer segment. He also said Wipro is seeing momentum build in the BFSI sector in the Americas heading into the second quarter.
Iyer provided more detail on regional performance, all in constant currency terms:
- 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 but declined 0.9% sequentially.
- APMEA grew 13.5% year over year and 4.4% sequentially.
On a sector basis, BFSI grew 2.6% year over year but declined 1.2% sequentially. Consumer grew 1.9% year over year and 0.7% sequentially. Technology and communications grew 10.8% year over year and 0.2% sequentially. Health declined 3.0% year over year and 2.6% sequentially, while energy, manufacturing and resources fell 8.9% year over year and 3.6% sequentially.
Iyer said weakness in Americas 1 included client-specific issues and budget cuts affecting healthcare platform work. In Americas 2, she said energy, manufacturing and resources remained a “tough spot,” while BFSI showed signs of improving momentum.
Large Deal Bookings Reach $1.6 Billion
Wipro’s total order book for the quarter was $3.4 billion, including $1.6 billion in large deal bookings across 13 large deals. Pallia highlighted two wins as examples of how enterprise priorities are shifting toward AI-enabled operating models.
In one deal, a global animal healthcare provider selected Wipro to modernize and manage digital operations across a global network of hospitals and clinics. Pallia said Wipro Intelligence would be used to improve productivity, enable predictive issue prevention and create a more autonomous technology environment.
In another deal, a European specialty chemicals company chose Wipro to run and transform its application landscape. Pallia said Wipro would use AI-led capabilities through VINX, part of Wipro Intelligence, to automate operations, improve delivery efficiency and provide visibility through an AI-powered digital command center.
“Increasingly today, our clients are looking beyond technology modernization alone,” Pallia said. “The focus clearly is moving towards AI-enabled operating models that improve service quality, reduce operational complexity, and strengthen resilience.”
AI Strategy Takes Center Stage
Wipro executives repeatedly emphasized the company’s consulting-led, AI-powered strategy. Pallia said the company has moved from strategy to execution after launching its AI business and platform unit last quarter. He said Wipro is building AI-powered industry platforms, developing AI-native business models and expanding partnerships across its AI ecosystem.
Pallia cited the launch of an Applied AI Center of Excellence for Claude models powered by Anthropic, as well as awards involving Capco and OpenAI. He said Wipro is using AI in client work across finance, procurement, healthcare provider enrollment, data creation for AI models, pharmacovigilance and enterprise robotics strategy.
Asked what percentage of revenue comes from AI, Pallia declined to give a figure, saying AI is increasingly embedded across statements of work and client engagements. He said the more important measure is the return on investment clients receive from projects.
Wipro is also investing through Wipro Ventures, which Pallia described as a dedicated half-billion-dollar fund focused on areas including AI, data and cybersecurity. He said Wipro partners with startups to bring their solutions to large enterprise clients.
Second-Quarter Guidance Remains Cautious
For the second quarter, Wipro guided IT services revenue to a range of $2.574 billion to $2.627 billion, implying sequential constant currency growth of negative 1.5% to positive 0.5%.
Pallia said demand conditions have not changed meaningfully and that the company’s pipeline remains healthy, but much of it is focused on cost optimization and vendor consolidation. He said clients are taking costs out of other areas to fund AI investments, while discretionary spending remains closely scrutinized.
On margins, Iyer said the company remains focused on returning to its previously stated 17% to 17.5% range over the next few quarters, but did not provide a specific timeline. She pointed to productivity improvements, AI-led efficiencies, utilization, employee pyramid optimization and overhead reductions as levers, while noting that Wipro will continue to prioritize growth investments.
Chief Human Resources Officer Saurabh Govil said Wipro did not hire freshers in the first quarter and is not calling out a hiring target. He said the company hired about 7,500 people last year and will revisit hiring depending on demand.
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.
