Wipro, a leading AI-powered technology services and consulting company, has announced its Q1 results for the financial year 2026, showcasing a mixed performance with a notable increase in net profit year-over-year (YoY) but a decline quarter-over-quarter (QoQ). The company's consolidated net profit for the quarter ended June 2025 stood at ₹3,336.5 crore, a 9.8% increase compared to ₹3,036.6 crore in the same quarter last year.
However, the net profit experienced a 7% QoQ decrease from ₹3,588.1 crore in Q4 FY25. Despite this dip, the profit attributable to the company's equity holders slightly surpassed Street estimates, which were around ₹3,233 crore.
Alongside the earnings report, Wipro's board declared an interim dividend of ₹5 per equity share. The record date for the dividend is set for July 28, 2025, and the payment will be made on or before August 15, 2025. This dividend announcement is a positive sign for investors, reflecting the company's commitment to returning value to its shareholders.
Wipro's revenue from operations saw a marginal increase of 0.7% YoY, reaching ₹22,134 crore compared to ₹21,963 crore in the previous year. However, there was a 1.64% QoQ decrease from ₹22,504.2 crore in Q4 FY25. The IT services segment revenue, a significant contributor to Wipro's topline, was reported to be $2,590 million, marking a 2% QoQ and 2.3% YoY decline.
The company's IT services operating margin for Q1 FY26 stood at 17.3%, reflecting a contraction of 0.2% QoQ but an expansion of 0.8% YoY. Net income for the quarter was ₹33.3 billion ($388.4 million), a decrease of 6.7% QoQ but an increase of 10.9% YoY. The earnings per share for the quarter were ₹3.2 ($0.04), also showing a decrease of 6.7% QoQ and an increase of 10.8% YoY.
Wipro's total bookings reached $4,971 million, up by 24.1% QoQ and 50.7% YoY in constant currency. Large deal bookings were at $2,666 million, representing a significant increase of 49.7% QoQ and 130.8% YoY in constant currency. This strong performance in deal bookings indicates healthy traction in long-term strategic contracts.
Looking ahead, Wipro expects revenue from its IT Services business segment to be in the range of $2,560 million to $2,612 million for the quarter ending September 2025. This translates to a sequential guidance of -1.0% to 1.0% in constant currency terms.
Analysts had projected a potential revenue decline for Wipro in Q1FY26, citing factors such as muted discretionary spending, softness in the European market, and sluggish deal closures. Anand Rathi had anticipated pressure in Q1FY26 due to Wipro's high exposure to the Manufacturing and Retail (M&R) segment. Kotak Institutional Equities also forecasted a revenue decline, attributing it to weak demand and company-specific issues in Europe.
Despite these challenges, Wipro's management remains focused on driving growth and improving performance. The company's strong deal bookings and focus on cost management are expected to support its financial results in the coming quarters.
