Wipro is scheduled to announce its Q1FY27 results on July 16. Analysts expect Wipro to report a weak first quarter.

Motilal Oswal expects the IT major’s revenue to decline 1.3% quarter-on-quarter (QoQ) in constant currency (CC) and 1.5% in dollar terms. “IT services are expected to decline approximately 1.3% QoQ CC including approximately 1.0% inorganic contribution from Mindsprint, as delayed ramp-ups, weakness in a large client, and softer US BFSI more than offset the acquisition benefit,” Motilal Oswal noted.

In rupee terms, revenue is likely to rise 12.7% year-on-year (YoY) to Rs 24,950 crore, mainly due to currency movements. 

Wipro Q1FY27 Preview: 5 key expectations

With its peers, TCS and HCLTech reporting inline Q1FY27 earnings, the street is awaiting Wipro’s Q1 performance with bated breath.

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Wipro Q2FY27 Guidance in focus

Few analysts expect Wipro to keep the guidance for Q2FY27 same as Q1FY27 at (-)2.0% to 0% in constant currency terms. Some expect the IT firm to raise the guidance to -1% to +1%

“We expect revenue guidance of -2 to 0% growth. Continued weakness in the external environment and AI deflation will feed into a weak guidance,” Kotak noted.

“We expect Wipro to guide for -1% to +1% QoQ cc revenue growth in Q2, including 60 bps from Mindsprint & no contribution from Alphanet.” JM Financial noted.

2. Wage hike impact on Wipro’s margins

Margins are expected to face pressure due to wage hike effective this quarter and DTS Harman integration 

“We expect 60 bps QoQ decline in margin, mainly due to two months of incremental wage hike impact in Q1,” JM Financial noted. 

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Motilal Oswal expects “margins to decline approximately 110 bps QoQ to  approximately 16.1%, reflecting wage hikes, lower-margin deal ramp ups, and AI investments.”

3. Wipro Q1 preview: AI & deal wins in focus 

AI strategy and the measures taken to offset AI deflation on the overall business. Deal wins are also in Focus.

JM financial expects Wipro’s deal win at $8bn–10bn in Q1FY27. “Investors will closely watch commentary on the pace of large deal ramp-ups, demand recovery in the BFSI segment and the overall business outlook,” JM financial noted.

4. Middle East & Rupee depreciation impact on Wipro’s Q1

Around 3% quarter-on-quarter depreciation in the rupee is expected to partly cushion the impact of weak demand in the IT sector. However, the macro uncertainty emanating from the 

ongoing Middle-East conflict and uncertainty around rates, particularly in the US, is keeping client spending subdued at the margin level, Nomura pointed out.

5. Wipro Q1 preview:  Headcount & Attrition rate

Hiring in the IT sector has been a matter of debate in the last financial year FY26 due to global AI fear. 

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Other IT peers like TCS and HCLTech have reported a mixed hiring and attrition trend so far. While TCS has added more than 9,000 employees in the first quarter – its strongest in 4 years, HCLTech trimmed employee by more than 3,000. In fact the fresher hiring for HCLTech is also at 3-quarter low. As a result, the street will watch out for how the Q1 pans out for Wipro. 

Conclusion

All eyes are now on Wipro’s Q1 performance. Will the company manage AI-led pricing pressure in the face of margin concerns due to wage hikes. We will get you live updates on how have Middle East war and rupee depreciation shaped the company’s finances this quarter.