Wipro

Wipro's IT Services revenue for Q4 FY25 stood at $2.6 billion, experiencing a sequential decline of 0.8% and a year-on-year decline of 1.2% in constant currency. For the full fiscal year 2025, IT Services revenue reached $10.51 billion, marking a 2.3% year-on-year degrowth. Despite revenue challenges, operating margins improved, reaching 17.5% in Q4 (flat sequentially, 110 bps YoY expansion) and 17.1% for the full year (almost 1% YoY expansion). Net income grew 6% QoQ in Q4 and 19% YoY for FY25, with EPS at INR 12.6, up 20% YoY.

The company reported robust order bookings in Q4 FY25, totaling $4.0 billion, which represents a 13.4% sequential growth and 10.5% year-on-year growth. For the entire fiscal year, Wipro closed 63 large deals with a total value of $5.4 billion, reflecting a significant 17.5% year-on-year increase. This momentum in large deals is seen as a positive sign, indicating that the large deal engine is functioning effectively despite the prevailing uncertain macroeconomic environment.

Geographically, Americas 1 grew 0.2% sequentially and 6% YoY, while Americas 2 degrew 1% sequentially and 1.8% YoY. Europe continued to face headwinds, degrowing 2.5% sequentially and 6.9% YoY. APMEA showed a sequential growth of 1% but degrew 4.9% YoY. In terms of industries, BFSI degrew 0.5% sequentially but grew 0.8% YoY, and Capco performed well, growing 6.5% sequentially and 11.5% YoY. However, sectors like Healthcare (-3.1% QoQ) and Energy, Manufacturing and Resources (-7% YoY) saw declines.

Wipro provided cautious guidance for Q1 FY26, expecting IT Services revenue to be in the range of $2.505 billion to $2.557 billion, translating to a sequential decline of -3.5% to -1.5% in constant currency terms. This outlook is primarily driven by the uncertain macroeconomic environment, recent tariff announcements, and clients adopting a more measured approach to large transformation programs and discretionary spending. Management noted that clients are focused on cost, speed, and AI-led efficiency, which Wipro aims to address with its solutions.

Despite revenue pressures, Wipro's operating margins expanded by 110 basis points year-on-year in Q4 to 17.5%, and by almost 1% for the full year to 17.1%. Management stated their endeavor is to maintain margins in a 'narrow band' in the coming quarters, acknowledging headwinds from a weak revenue environment and pricing pressure on cost takeout deals. Levers for margin maintenance include tight bench cost management, higher fixed price program productivity, and optimization of fixed spends without cutting into essential areas like sales and marketing.

AI is becoming central to almost every opportunity, driving productivity and efficiency. Wipro is leveraging AI-powered solutions for end-to-end IT services, employee experience transformation, and infrastructure management. Recent wins include a five-year transformation program for a global technology leader and a partnership with a leading global food distributor, both incorporating AI solutions. Management emphasized that GenAI is not just about operating better but also about creating new revenue streams and changing the game for clients, citing examples like predictive maintenance for critical infrastructure in a European city.