Wipro reports slow Q1 growth despite big deal wins, AI focus

India’s fourth-largest Indian IT services company, Wipro, reported a muted revenue performance in the first quarter of FY26, as consolidated revenue rose 0.8% on a year-on-year basis to ₹22,130 crore. Net profit for the quarter, however, came in at ₹3,330 crore, up 10.9% YoY, while operating margins for the IT services segment stood at 17.3%, 80 basis points higher than the same period last year. In a regulatory filing, the Bengaluru-based company reiterated its focus on Artificial Intelligence (AI) while highlighting a large number of deals secured in recent months.

Srini Pallia, CEO and MD of Wipro, emphasised that AI is no longer experimental. “It's central to our clients' strategies, and we are delivering real impact at scale,” he said.

The Bengaluru-based company won large deal bookings worth $2.67 billion in Q1, a massive 131 per cent jump YoY. Total deal bookings rose to $5 billion, up over 50 per cent compared to the same period last year. The company closed 16 large deals during the quarter, including two mega deals, with a total deal value of $4.97 billion, higher than the $3.96 billion it won in the previous quarter.

Pallia who attributed the muted growth to a quarter shaped by macro uncertainty, said that clients prioritised efficiency and cost optimisation. "We partnered 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,” he said.

Wipro's employee attrition stood at 15.1% on a trailing 12-month basis. For Q2, the company projects IT Services revenue to range from -1.0% to 1.0% in constant currency.

Gartner's Biswajit Maity noted that Wipro's gross revenue, while up 0.8% YoY, declined 1.6% QoQ, indicating market weakness influenced by reduced discretionary spending amid economic uncertainty. He believes Wipro's optimism is supported by a strong deal pipeline and strategic priorities, including securing large deals, reinforcing client relationships, expanding AI capabilities, and adapting operations. The large deal wins also ensure revenue stability and future growth visibility.

The quarter's tepid start mirrored that of other top Indian IT companies, with Tata Consultancy Services reporting a 6% net profit increase, HCLTech posting a 10% decline, and Tech Mahindra reporting a 2.7% revenue increase. 

In contrast, mid-sized firm LTIMindtree, which also announced its Q1 results reported an 11% net profit increase and an 8% revenue rise on Wednesday. LTIMindtree's CEO, Venu Lambu, cited a promising start to the year, driven by broad-based growth and progress on strategic priorities. He expressed confidence that disciplined execution and client focus would continue to drive performance despite macroeconomic challenges.