Wipro (WIPRO) Q1 26/27 (Media) earnings summary

Executive summary

• IT services revenue for Q1 was $2.61 billion, up 0.9% year-on-year, but down 1.2% sequentially in constant currency terms.

• Audited standalone and consolidated financial results for the quarter ended June 30, 2026, were approved, with unmodified opinions from auditors.

• Operating margin for IT services was 16.0%, a decline of 1.2 percentage points year-on-year, mainly due to wage hikes and ongoing AI investments.

• Americas remained soft with declines, while APMEA and Europe showed year-on-year growth, especially in BFSI and technology sectors.

• Order book for Q1 totaled $3.4 billion, with $1.6 billion from 13 large deals.

Financial highlights

• Consolidated revenue from operations for Q1 FY27 was ₹244,786 million, up from ₹221,346 million in Q1 FY26 and ₹242,363 million in Q4 FY26.

• Net income for Q1 was INR 33.6 billion, and EPS was INR 3.2, both up 0.6% year-on-year.

• Operating cash flow was 98% of net income; gross cash stood at $4.3 billion as of June 30, 2026.

• Interim dividend of INR 2 per share declared; over $3 billion returned to shareholders in the past four quarters.

• Buyback of 600 million equity shares at ₹250 per share completed, resulting in a cash outflow of ₹150,497 million and reduction in paid-up equity share capital.

Outlook and guidance

• Q2 revenue guidance for IT services is $2.574–$2.627 billion, translating to -1.5% to +0.5% sequential growth in constant currency.

• Management expects margin recovery over the next few quarters as wage hike impacts normalize and operational levers are exercised.

• Pipeline remains healthy, but macro uncertainty and cautious client spending persist.

• Interim dividend declared for Q1 FY27, reflecting confidence in cash flows.