Wipro shares rally up to 4.3% post Q1 results; five things that Street liked

• The market liked strong deal wins during the quarter. Wipro said that the large deal bookings brought in $2,666 million, an increase of 130.8% year-on-year (YoY) in constant currency terms.

• Besides, sustainably, the company said that the AI projects saw good demand and acceleration by the clients.

"We started the quarter facing significant macro uncertainty, which kept overall demand muted. Our clients prioritised initiatives with immediate impact, focusing on cost optimisation and vendor consolidation. At the same time, they accelerated their AI, data and modernisation programmes.

"We saw a clear trend of many AI projects moving to scale and production, so we quickly aligned with these priorities, deepened our partnerships, and, of course, secured key deals. The large deals we closed this quarter and the last quarter, along with a strong pipeline, put us in a good position for the second half of the year," Wipro CEO and MD Srini Pallia said.

Clients are modernising their IT landscape with a sharp focus on AI-led efficiency, and there is a clear shift towards AI investments, Pallia noted.

"AI is no longer a niche. It's becoming essential to how businesses operate at scale. We are building an AI-first, AI-everywhere enterprise focused on solving complex challenges, accelerating delivery, and reimagining operations at scale," Pallia said.

• Another positive for the stock is the declaration of an interim dividend as well as the statement on dividend payment.

Wipro declared an interim dividend of ₹5 per equity share of par value ₹2 each to the members of the company, payable on or before August 15, 2025.

Wipro CFO Aparna Iyer said that the company will endeavour to pay dividends twice a year, once along with the Q2 results and then along with the Q3 results.

• Additionally, the company hinted at the return of discretionary spending.

Discretionary spending is not uniform and is coming back in certain pockets, the CEO added.

• Moreover, Wipro's guidance was also received well by the market participants.

The company has given a sequential guidance of -1 per cent to 1 per cent in constant currency terms. It expects revenue from its IT services segment to be in the range of $2,560 million to $2,612 million in the September quarter (Q2 FY26).

Wipro's IT Services segment, which forms the core of its business, generated ₹22,080 crore in Q1 FY26, a year-over-year growth of 0.8% and a sequential decline of 1.6%.

Another positive was the IT Products segment performance.

Wipro said that the vertical generated ₹72.8 crore in Q1 FY26, a year-over-year (YoY) growth of 55.2%.

Wipro Q1 FY26 Key Numbers

India's fourth-largest IT services firm, Wipro, on Thursday posted a 9.8% increase in consolidated net profit to ₹3,336.5 crore for the quarter under review, buoyed by strong deal wins.

The Bengaluru-headquartered firm had logged a net profit of ₹3,036.6 crore in the year-ago period.

Revenue from operations in the first quarter of FY26 was marginally higher at ₹22,134.6 crore compared to ₹21,963.8 crore logged in Q1 FY25.

Sequentially, profit and revenue declined by 7% and 1.6%, respectively.

Total bookings during the quarter under review stood at $4,971 million, up by 50.7% year-on-year (YoY) in constant currency terms.

Large deal bookings brought in $2,666 million, an increase of 130.8% year-on-year in constant currency (CC) terms.

Banking, Financial Services and Insurance (BFSI) remained the largest contributor, accounting for 33.6% of IT Services revenue, but saw a revenue decline of 3.8% in constant currency terms.

The consumer sector represented 18.6% of IT services revenue, registering a 5.7% decline in constant currency.

In Energy, Manufacturing and Resources, which made up 17.7% of segment revenue, performance was down by 2.4% in constant currency terms.

Technology and communications accounted for 15.5% of revenue and was nearly flat for the quarter, dropping 0.3% in constant currency.

The health segment stood out as the only vertical in the positive, contributing 14.6% of segment revenue and delivering a 3.5% growth in constant currency.

Employee benefits expense stood at ₹13,427.5 crore in Q1 FY26, representing 60.6% of revenue from operations.