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An around mid-point guidance performance saw Wipro’s Q126 revenue decline by 2.3% yoy at constant currency to $2.59bn with operating margin improving by 80 bps to 17.3%. The three months ended 30th June proved, however, to be somewhat of a purple sales patch for the offshore major. Following a strong bookings finish to FY25 (see here), first quarter large deal TCV closed jumped by over 130% yoy to $2.7bn. Total bookings in the period up by over a half against Q125 at $5.0bn.
Across the company’s industry sector portfolio and for the second quarter in a row, only Wipro’s Health segment business delivered yoy revenue expansion in Q126 with sales to the vertical increasing yoy by 3.5%. Having recovered as FY25 progressed, demand from the firm’s Banking, Financial Services and Insurance customers soften in the last quarter with turnover in the vertical dipping by 3.5%. The going proved even heavier for the firm’s Consumer industry units with its revenue falling by 5.7% against the same period in the prior FY.
From a geographic perspective, the pace of decline in Wipro Europe took another turn for the worse in Q1 with turnover shrinking by 11.6% yoy (Q425: -8.3%) The company’s two Americas businesses, which together generate more than three fifths of firm-wide sales, proved somewhat more resilient. The top line across these units was up by c.1.6% yoy for the period.
Wipro’s improving fortunes on the big deals front means that a reversal to the company’s more than two year-long downward revenue trajectory may now not be too long in coming. Turnover in the second quarter of FY26 is expected to be in the range of between $2.56bn and $2.61bn. This translates to sequential guidance of -1.0% to +1.0% in constant currency terms.
Wipro CEO, Srini Pallia also believes the combination of the momentum from Q1 coupled with reportedly sales strong pipeline positions the company well for the second half of the FY. While the current global macro-economic and geo-political uncertainties persist, however, any optimism regarding the outlook needs to leavened with a healthy degree of caution (see our latest Market Trends & Forecasts 2025 report for more details).
Posted by: Duncan Aitchison at 08:09
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