Wipro Warns of Up to 3.5% Revenue Dip Next Quarter Amid Tariff Woes

Wipro Ltd has forecast up to a 3.5% sequential decline in revenue for the first quarter of FY26, citing global economic uncertainty amid the impact of proposed tariffs by the US. The IT major issued the guidance while announcing its financial results for FY25 on April 16, which showed a marginal decline in annual revenue.

CEO and Managing Director Srini Pallia noted that the company’s clients “remain cautious in the face of macroeconomic uncertainty.”

In the fourth quarter of FY25, the Bengaluru-based company reported a 25.9% year-on-year rise in net profit to Rs 35.7 billion ($418 million). For the full fiscal year 2024–25, net income rose 18.9% YoY to Rs 131.4 billion ($1.54 billion).

Wipro expects revenue from its IT services business to be in the range of $2,505 million to $2,557 million for the quarter ending June 2025. This translates to a sequential decline of 1.5% to 3.5% in constant currency terms.

“As clients remain cautious in the face of macroeconomic uncertainty, we’re focused on partnering closely with them while staying committed to consistent and profitable growth,” Pallia said.

He also highlighted that the company closed FY25 with two mega deal wins, an increase in large deal bookings, and growth in its top client accounts.

Wipro’s gross revenue for Q4 stood at Rs225 billion ($2.63 billion), marking a 0.8% increase QoQ and 1.3% growth YoY. However, revenue from its core IT services segment declined 1.2% QoQ and 2.3% YoY to $2.6 billion.

The operating margin for Wipro's IT services business improved to 17.5% in Q4, a 1.1% increase YoY, while the full-year margin stood at 17.1%, up 0.9% from FY24.

The company reported robust growth in large deals, with bookings of $1.76 billion in Q4, a 48.5% YoY jump, and $5.4 billion for the full year, up 17.5% YoY. Total bookings for Q4 reached $3.96 billion, reflecting a 13.4% QoQ increase.

Operating cash flow for Q4 was Rs 37.5 billion ($438 million), or 104% of net profit, though it was down 28.2% YoY. For the full year, operating cash flow was Rs 169.4 billion ($1.98 billion), accounting for 128% of net profit.

Wipro’s voluntary attrition rate stood at 15% over the trailing 12-month period.

Wipro’s results come amid broader challenges facing the global IT services industry, with reduced client spending in major markets such as North America and Europe.

Wipro Shares closed 1.5% higher at Rs 247.6 ahead of the quarterly results.

The company declared an interim dividend of Rs 6 as final dividend for the financial year 2024-25.