Wipro posts higher Q1 profit as AI deals drive large order momentum

MUMBAI: Wipro’s growth story is learning a new language and it’s spelled A-I. While the technology giant delivered only modest profit growth in the June quarter, its expanding pipeline of AI-led deals suggests the next chapter may be written less by traditional outsourcing and more by intelligent transformation.

Wipro reported a consolidated net profit of Rs 3,356.3 crore for the quarter ended 30 June 2026, up 0.6 per cent from Rs 3,336.5 crore a year earlier. Consolidated revenue rose 10.6 per cent year-on-year to Rs 24,478.6 crore, while operating cash flow stood at Rs 3,288 crore, representing 98 per cent of net income.

The company’s IT services business generated $2.61 billion in revenue during the quarter, rising 1 per cent year-on-year but declining 1.4 per cent sequentially, reflecting continued softness in discretionary technology spending.

A brighter spot came from deal wins. Total bookings reached $3.37 billion, while large deal bookings climbed 12.9 per cent quarter-on-quarter in constant currency to $1.63 billion, signalling sustained demand for large-scale digital transformation programmes.

As Wipro sharpened its push into enterprise AI, it also stepped up investments in customer acquisition. Selling and marketing expenses increased 7.9 per cent year-on-year to Rs 1,649.6 crore, compared with Rs 1,528.5 crore in the corresponding quarter last year.

Looking ahead, Wipro expects IT services revenue for the September quarter to be between $2.57 billion and $2.63 billion, implying sequential constant currency growth ranging from (-)1.5 per cent to (+)0.5 per cent, underscoring a cautious demand environment.

Chief Executive Officer and Managing Director Srini Pallia said clients are increasingly moving beyond conventional technology modernisation towards AI-enabled operating models focused on improving productivity, resilience and quality. He added that Wipro’s consulting-led, AI-powered approach is helping organisations embed artificial intelligence at the heart of their businesses.

Chief Financial Officer Aparna Iyer said the company would continue investing in strategic priorities and talent despite the possibility of near-term pressure on margins. She also announced that the board had declared an interim dividend of Rs 2 per share, adding that Wipro would have returned more than $3 billion to shareholders over the past year through dividends and other payouts while continuing to invest for growth.

On the people front, voluntary attrition remained broadly stable at 13.9 per cent over the trailing 12 months, compared with 13.8 per cent in the March quarter and 15.1 per cent a year ago. Employee utilisation, excluding trainees, edged up to 83.6 per cent from 83.5 per cent.

Wipro ended the quarter with a workforce of 2.43 lakh employees, adding a net 888 employees during the period, a notable improvement over the 135 net additions recorded in the previous quarter.

While the latest numbers reflect an IT sector still navigating cautious client spending, Wipro’s growing AI-led deal pipeline and robust cash generation suggest the company is positioning itself for a future where transformation is measured not just by technology adoption, but by how intelligently businesses put it to work.