Wipro Shares Surge 4% After Better-than-expected Q1 Show, Strong Deal Wins

Shares of Wipro surged 4% on July 18 after the IT major posted a set of June quarter results that beat expectations along with a sharp uptick in large deal wins. This comes after the company’s American Depositary Receipts (ADRs), listed on the New York Stock Exchange also reacted positively to these triggers and jumped nearly 4% on Wall Street overnight.

Revenue for the first quarter came in at ₹22,080 crore, a sequential decline of around 2%, but lesser than expectations of a near 3% contraction. Wipro’s Ebit rose 0.6% sequentially to ₹3,813 crore, beating expectations of ₹3,787 crore. Margins, though slightly lower than the previous quarter, held up at 17.3%, ahead of the forecast 17.1%, still a relief, given the pressure on tech firms to defend profitability in a choppy macro climate.

But the biggest spark in Wipro’s update came from its deal pipeline. Total bookings soared 50.7% year-on-year and 24.1% quarter-on-quarter in constant currency terms, touching $4.97 billion.

Of this, large deal bookings stood at $2.67 billion, a whopping 130.8% rise on year, and up nearly 50% from the March quarter. Wipro’s management said many of these were multi-year engagements with global clients, highlighting strong demand despite persistent macro uncertainties.

However, the company sounded a note of caution for the current quarter, guiding for flat revenue growth in Q2 (between -1% and +1% on quarter in constant currency terms). That said, the management expects the second half of FY26 to fare better than the first half.

Brokerage Nuvama Institutional Equities summed up Wipro’s Q1 performance by stating that the IT major beat expectations, which were quite low to begin with. “Strong deal-wins should support growth in coming quarters. We await signs of macro improvement and consistency in performance to turn buyers,” it added.

Nuvama has also revised its FY26 and FY27 EPS estimates for Wipro upwards by 4.3% and 1.6%, respectively, on expectations of stronger revenue growth.

Despite green shoots of positivity, challenges loom. Wipro’s management acknowledged that several of the new large deals will require upfront investments, which could temporarily compress margins. However, they showcased confidence in maintaining the margin band at 17–17.5%, citing past success in operational efficiency and cost control.

In sum, Wipro has set a steady tone for FY26, with its largest quarterly deal wins in recent memory and signs of disciplined execution.