Wipro reports mixed Q1 results with modest annual growth but sequential decline as AI investments weigh on margins.
Wipro’s first-quarter IT services revenue grew 0.9% year over year in constant currency to $2.61 billion, missing sequential expectations as margins fell to 16.0%. The decline was driven by wage hikes, large deal ramp-ups, and heavy investments in artificial intelligence.
Demand varied by region and sector, with Europe and APMEA showing growth while the Americas remained weak. BFSI and technology sectors performed better, but healthcare and energy/manufacturing faced headwinds. The company secured $1.6 billion in large deal bookings, emphasizing AI as a core strategy.
Management described the macro environment as resilient but noted prolonged client decision cycles. AI spending is expanding opportunities, though near-term guidance remained cautious.