Wipro (WIPRO) Q1 25/26 (Media) earnings summary

Executive summary

• Q1 began amid significant macro uncertainty, with muted demand, client cost optimization, vendor consolidation, and accelerated AI/data modernization initiatives.

• IT services revenue for Q1 was $2.59B, up 2% in constant currency within guidance; operating margin expanded 80 bps YoY to 17.3%.

• Revenue for the quarter ended June 30, 2025, was ₹221,346 million, up from ₹219,638 million year-over-year.

• Net profit attributable to equity holders rose to ₹33,304 million from ₹30,032 million year-over-year.

• Bookings reached $5B in total contract value, up 51% YoY, with large deal bookings at $2.7B, up 131% YoY, including 16 large deals and two mega deals.

Financial highlights

• IT services revenue declined 2% sequentially and 2.3% YoY in constant currency.

• Net income grew 10.9% YoY in Q1, despite a one-time restructuring charge of INR 247 crores.

• Basic and diluted EPS for the quarter were ₹3.18 and ₹3.17, respectively, up from ₹2.87 year-over-year.

• Free cash flow as a percentage of net income was 115% for the quarter; gross cash including investments stood at $6.4B.

• Operating income stood at ₹35,724 million, slightly down from ₹36,069 million year-over-year.

Outlook and guidance

• Sequential revenue guidance for Q2 is -1% to +1% in constant currency, with IT services revenue expected between $2.56B and $2.612B.

• Management remains cautious due to macro uncertainty but expects a stronger second half based on a robust order book and healthy pipeline.

• Management does not expect material financial impact from recently enacted Pillar Two income tax legislation for the quarter.

• The company is assessing the impact of upcoming IFRS 18 and IFRS 9/7 amendments on future reporting.