IT services major Wipro is set to announce its first quarter result for financial year 2026 results on Thursday, July 17. Analysts expect the company to report a weak performance this quarter, dragged down by muted discretionary spending, softness in Europe, and sluggish deal closures.
Key things to watch out for?
Key factors to watch will be its deal pipeline, performance in the European market, and any commentary on large-scale deal 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.
Kotak sees deal wins offsetting weak growth
Kotak Institutional Equities has projected a 2.7 per cent revenue decline for Wipro in Q1FY26, close to the mid-point of its own guidance of -1.5 to -3.5 per cent. The weakness, Kotak said, stems from subdued demand and company-specific issues in Europe.
Despite the tepid revenue performance, 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.
Revenue may decline due to weak Manufacturing and Retail segment
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. “This segment is under stress due to tariff-related uncertainties and delayed client spending,” the brokerage said in its report.
As a result, 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.
On valuations, the brokerage noted that Wipro trades at a FY26E P/E of 21.1x, slightly below its peers, reflecting muted market expectations. The company’s FY26–28 earnings CAGR is estimated at just 6.6 per cent, among the lowest in the large-cap IT space.
Axis Securities expects margin uptick despite revenue fall
Axis Securities has also flagged concerns over Wipro’s Q1FY26 performance. It 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.
That said, the brokerage expects Wipro’s operating margins to improve by 29 basis points due to cost control initiatives. “Wipro remains on our ‘Top Result Negative Plays’ list, along with Cyient and KPIT Technologies, reflecting concerns over execution and earnings pressure,” Axis said.
Still, the brokerage remains hopeful about the medium-term outlook, citing potential deal ramp-ups in H2FY26 and a pick-up in AI-led and cost-takeout deals.
Wipro Q4FY25: A recap
In its previous quarter Q4FY25, Wipro reported a net profit of ₹3,570 crore marking a 25.9 per cent year-on-year (YoY) growth and a 6.4 per cent rise sequentially. However, revenue from operations during the quarter stood at ₹22,500 crore, reflecting a modest 1.3 per cent YoY growth and 0.8 per cent sequential increase.
Wipro’s IT services underperform in Q4FY25
The company’s IT services segment, which contributes the bulk of its topline, posted revenue of US $2.596 billion, down 2.3 per cent YoY and 1.2 per cent quarter-on-quarter in reported terms. In constant currency, the IT services revenue declined 0.8 per cent sequentially, indicating ongoing pressure on discretionary tech spending by global clients. Notably, operating margins for the quarter expanded 110 basis points YoY to 17.5 per cent, supported by productivity improvements and cost rationalisation, even though they remained flat on a quarterly basis.
Wipro’s Q4 large deal wins jump 48.5 per cent
Wipro’s large deal wins during Q4 stood at $1.763 billion, up 48.5 per cent YoY, indicating healthy traction in long-term strategic contracts. The company also reported total bookings of $3.955 billion, up 13.4 per cent sequentially. The management highlighted that clients continue to remain cautious amid macroeconomic uncertainty, which is impacting near-term demand and decision-making cycles, particularly in sectors such as energy, manufacturing, and resources. However, the banking sector showed resilience, contributing positively to the revenue mix.
Wipro’s Q4FY25 shows healthy cash flow and 15 per cent attrition
Wipro confirmed the interim dividend of ₹6 per share for FY25. The company also maintained a healthy liquidity position, with operating cash flow at ₹3,750 crore, amounting to over 104 per cent of net income. Meanwhile, voluntary attrition on a trailing 12-month basis was reported at 15 per cent, showing signs of stabilisation in workforce metrics.
Wipro projected muted Q1FY26 performance
In its previous quarter result statement Wipro guided for IT services revenue in the range of US $2.505–2.557 billion, which translates to a decline of 1.5 per cent to 3.5 per cent in constant currency terms.