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

Executive summary

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

• IT services revenue for Q1 was $2.59 billion, a 2% growth in constant currency within guidance, with a 17.3% margin, up 80 bps year-on-year.

• 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 $5 billion in total contract value, up 51% year-on-year, with large deal bookings at $2.7 billion, up 131% year-on-year, including 16 large deals.

Financial highlights

• IT services revenue declined 2% sequentially and 2.3% year-on-year in constant currency.

• Operating margin for Q1 was 17.3%, expanding 80 bps year-on-year.

• Net income grew 10.9% year-on-year, 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%, with gross cash at $6.4 billion.

Outlook and guidance

• Sequential revenue guidance for Q2 is -1% to +1% in constant currency, reflecting ongoing caution due to macro uncertainty.

• Second half of the year expected to be stronger, driven by robust deal pipeline and recent large deal wins.

• 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.