Wipro Q1 Results Highlights: Profit surges by 53.70%, total bookings up 24% QoQ; ‘AI no longer experimental’, says CEO & MD

Wipro reported a strong 53.7 per cent year-on-year jump in net profit for the June quarter of FY26, supported by improved operating margins and robust large deal wins.

Here are 5 key takeaways from the first quarter results for FY26.

– Profit growth

– Interim dividend

– Attrition rate

– Large deal wins

– AI footprint

Wipro said that the voluntary attrition was at 15.1 per cent on a trailing 12-month basis.

1. Gross revenue at Rs 221.3 billion ($2,581.6 million), decrease of 1.6% QoQ and increase of 0.8% YoY.

2. IT services segment revenue was at $2,587.4 million, decrease of 0.3% QoQ and 1.5% YoY. 3. Non-GAAP2 constant currency IT Services segment revenue decreased 2.0% QoQ and 2.3% YoY.

4. Total bookings was at $4,971 million, up by 24.1% QoQ and 50.7% YoY in constant currency. Large deal bookings were at $2,666 million, an increase of 49.7% QoQ and 130.8% YoY in constant currency.

5. IT services operating margin for Q1’26 was at 17.3%, contraction of 0.2% QoQ and expansion of 0.8% YoY.

6. Net income for the quarter was at Rs 33.3 billion ($388.4 million), decrease of 6.7% QoQ and increase of 10.9% YoY.

7. Earnings per share for the quarter at Rs 3.2 ($0.04 1), decrease of 6.7% QoQ and increase of 10.8% YoY.

8. Operating cash flows of Rs 41.1 billion ($479.6 million), increase of 9.8% QoQ and 2.9% YoY and at 123.2% of Net Income for the quarter.

9. Declared interim dividend of Rs 5 ($0.061) per equity share/ADS.

10. Voluntary attrition was at 15.1% on a trailing 12-month basis.

Wipro announced an interim dividend of Rs 5 per equity share of Rs 2 each of the company. In a regulatory filing, it said that the board of directors considered and approved “…payment of interim dividend of Rs 5 per equity share of par value Rs 2 each to the members of the company as on July 28, 2025, being the record date.” The payment of interim dividend will be made on or before August 15, 2025, the company added.

Aparna Iyer, Chief Financial Officer, Wipro, said, “We expanded our operating margins by 80 basis points on YoY basis. Our cash flow conversion remained strong with operating cash flows being at 123 per cent of our net income. The board also declared an interim dividend of Rs 5 per share. With this, the total cash returned to shareholders over the last 6 months is more than $1.3 billion.”

Wipro estimated revenue from its IT Services business segment to be in the range of $2,560 million to $2,612 million. This translates to sequential guidance of (-)1.0 per cent to 1.0 per cent in constant currency terms.

Wipro posted a large deal booking at $2.7 billion, posting a growth of 131 per cent on-year. It further added that overall deal bookings stood at $5.0 billion.

Srini Pallia, CEO and Managing Director, Wipro, said, “In a quarter shaped by macroeconomic uncertainty, clients prioritised efficiency and cost optimization. We partnered closely with them to address these needs, resulting in 16 large deals, including two mega deals. Building on the momentum from last quarter and supported by a strong pipeline, we are well positioned for the second half. AI is no longer experimental – it’s central to our clients’ strategies, and we are delivering real impact at scale.”

Wipro on Thursday released its fiscal first quarter earnings report with profit at Rs 3,696.10 crore, surging 53.70 per cent in comparison to Rs 2404.70 crore recorded during the corresponding quarter of FY25. It posted revenue from operations at Rs 17,195.40, posting a growth of 2.38 per cent as against Rs 16,795.30 crore during the corresponding quarter of previous financial year.

IT spending throughout the world is expected to grow by 7.9 percent in 2025, reaching $5.43 trillion. Last year, IT spending growth was 7.4 percent and totalled $5.03 trillion.

Worldwide software spending in 2025 is expected to reach $1.23 trillion, and total spending in the IT services sector is expected to reach $1.68 trillion. The data centres’ spending, led by generative AI, has grown by 42.4 percent. The total spending in data centres is expected to reach $474 billion this year.

Wipro’s management said in Q4 that there is uncertainty in the market. They said that the uncertainty is expected to cool down in the months of Q1FY26. The management also hoped that clients would resume discretionary spending in Q1FY26.

While remaining optimistic, the management also indicated delays in starting new projects and discretionary spending. The company management also said that the majority of the deals in the quarter were for cost optimisation, which will continue in Q1FY26.

Nuvama expects Wipro’s revenues to decline 2.5% q-q in cc vs its guided band of 3.5% to -1.5% for 1Q. Further, Nuvama expects the company to guide for -2% to +0% revenue growth in 2Q FY26F (in cc).

Nuvama expects Wipro’s EBIT margins to decline 40bp q-q due to higher provisions for doubtful debts driven by client-specific issues.

InCred Equities expects Wipro CC revenue to decline at the mid-point of its revenue guidance (-1.5 to -3.5%), led by the soft demand environment and account-specific challenges. The report says that Wipro’s Cost optimisation is to help sustain the EBIT margin, despite revenue weakness, but is partly offset by INR appreciation.

Key monitorable: 2QFY26F revenue growth guidance, large deal-win trajectory and vertical-wise outlook.

Anand Rathi expects Wipro to face pressure in the first quarter of FY26, mainly due to its high exposure to the Manufacturing and Retail (M&R) segment, which contributes around 35 per cent of its revenue.

Anand Rathi has forecast a 2.6 per cent sequential decline in constant currency revenue—the steepest among Tier-I IT players. However, it expects Wipro to report positive EBITDA and EBIT growth, with a year-on-year EBITDA margin expansion of 87 basis points.

Kotak Institutional Equities has projected a 2.7 per cent revenue decline for Wipro in Q1FY26. The weakness, Kotak said, stems from subdued demand and company-specific issues in Europe.

The brokerage expects Wipro to maintain stable EBIT margins, helped by aggressive cost control and currency tailwinds. It expects a large deal total contract value (TCV) to come in at around $1.2–1.3 billion—highlighting Wipro’s strong push in this space.

Anand Rathi has forecast a 2.6 per cent sequential decline in constant currency revenue—the steepest among Tier-I IT players. However, it expects Wipro to report positive EBITDA and EBIT growth, with a year-on-year EBITDA margin expansion of 87 basis points.

Anand Rathi expects Wipro to face pressure mainly due to its high exposure to the Manufacturing and Retail (M&R) segment, which contributes around 35 per cent of its revenue. “This segment is under stress due to tariff-related uncertainties and delayed client spending,” the brokerage said in its report.

Key things to watch out for includes deal pipeline, performance in the European market, any commentary on large-scale deals wins. Kotak Institutional Equities said, “Investors will closely track commentary around Wipro’s weak performance in Europe, its ability to win vendor consolidation deals, progress on growth recovery, and the company’s GCC strategy.

Analysts expect the company to report a weak performance this quarter, dragged down by muted discretionary spending, softness in Europe, and sluggish deal closures. Axis Securities expects the company to post a 3 per cent revenue decline on a sequential basis in rupee terms, largely due to continued weakness in Europe and slow deal closures.

Other IT majors, TCS and HCLTech, have already released their Q1 FY26 earnings on July 10 and July 14, respectively. While TCS reported steady growth with strong deal wins and margin stability, HCLTech posted robust revenue growth but faced pressure on profitability. Tech Mahindra also announced its results yesterday, July 16, reporting a strong performance with a 33.95 per cent year-on-year rise in net profit.

“Wipro, a leading AI-powered technology services and consulting company, will announce results for the first quarter ended June 30, 2025, on Thursday, July 17, 2025, after stock market trading hours in India.” the company said in a regulatory filing. Following the announcement, Wipro’s senior management will host a conference call at 7:00 PM to discuss the company’s quarterly performance and address questions submitted by 6:30 PM.

Good morning! Q1 earnings season continues with major IT players like TCS, HCLTech, and Tech Mahindra having already unveiled their first quarter results. All eyes are now on Wipro, which is set to announce its Q1 FY26 earnings today. Through this live blog, we will bring you real-time updates on Wipro’s financial performance, dividend payout, and key announcements from the management. Stay tuned for all the latest developments.