Wipro Ltd.Modest Growth Amid Margin Pressure & AI Investments

Wipro reported Q1 FY27 IT services revenue of $2.61 billion, growing 0.9% year-over-year but declining 1.2% sequentially in constant currency terms.

Operating margin compressed 120 basis points to 16% due to salary increases, large deal ramp-ups, and strategic AI investments. Geography-wise, APMEA led with 13.5% YoY growth while Americas 2 declined 7.3% YoY. The Technology and Communication sector delivered strong double-digit growth of 10.8% YoY, while Healthcare and Energy, Mining & Resources faced headwinds with YoY declines. Management secured $3.4 billion in order bookings including 13 large deals worth $1.6 billion.

For Q2 FY27, Wipro guided for revenue between $2.574 billion and $2.627 billion, representing -1.5% to +0.5% sequential growth. Management committed to returning to the 17-17.5% margin band through automation, pyramid restructuring, and operational efficiencies, though declined to provide specific timelines given revenue volatility. The company continues prioritizing investments in AI-native business capabilities while balancing near-term profitability pressures. Wipro declared an interim dividend of ₹2 per share, returning over $3 billion to shareholders over the past year.