Wipro Won Big Deals, But Execution Gap Can’t Be Overlooked Anymore

Wipro’s latest earnings highlight a disconnect: deal wins are rising, artificial intelligence is driving demand, and client spending remains intact—but revenue growth continues to lag.

The IT major reported IT services revenue of $2.65 billion for the March quarter, up 0.2% sequentially in constant currency and down 0.2% year-on-year. 

At the same time, total bookings stood at $3.45 billion for the quarter, with large deals contributing $1.44 billion.

Despite that momentum, Wipro guided IT services revenue to grow between -2% and 0% sequentially in constant currency in the June quarter of the current fiscal year.

That also seems to have spooked the market, with its shares trading 2.86% lower on the NSE at 11:25 am on April 17.

Execution Gap, Not Demand

The gap, according to the company, is driven by execution factors rather than demand.

“There was one client issue… another one where we were expecting a ramp-up for a large deal… and it’s taking time,” CEO and Managing Director Srini Pallia said during the earnings press meet.

“Those… have impacted Q4 and Q1,” he added.

CFO Aparna Iyer said the outlook already factors in recent deal wins. “Guidance includes those deals,” she said, attributing the softness to “a continuing challenge with one client” along with typical first-quarter seasonality.

The divergence is more visible over the full year as delays and client-specific issues pile on.

Wipro reported total bookings of $16.4 billion for FY26, up 14% year-on-year, while large deal bookings rose 45.4% to $7.8 billion. In contrast, IT services revenue declined 1.6% in constant currency during the year.

“We need to convert the pipeline into revenue,” Palla acknowledged.

AI Drives Demand Invisibly

Wipro’s pipeline strength is increasingly tied to AIe-led spending.

“AI is front and center of whatever clients are trying to do,” Pallia said, adding that companies are using it not just for productivity gains but also “how they create new business.”

Wipro has launched a dedicated AI-native business and platforms unit as part of a broader shift toward a “services-as-a-software” model.

However, it did not specify AI’s contribution to the topline. “At this point in time, we are not calling out AI revenue separately,” Pallia said.

Executives indicated that underlying demand remains stable, even as execution timelines stretch. “Tech budgets… are very strong,” Pallia said.

At the same time, some clients are taking a more cautious approach to project execution.

“We have not seen a significant impact… but there are a couple of projects where clients want to slow down,” he noted.

Praveen Bhadada, CEO and MD of consulting firm Neovay Global, tells AIM that deal momentum is a clear positive. This is  supported in part by large transactions such as the Olam deal—an 8-year, $1 billion deal with the Singapore-based agri-business group that saw the acquisition of Mindsprint.

“However, conversion of this pipeline into revenue remains gradual, reflecting typical ramp cycles and continued client caution,” he notes. 

Contracts are Changing

Wipro also pointed to a shift in how client engagements are being structured. Contracts are increasingly “modular, milestone-driven and covered by value checkpoints,” the company said.

Such structures tie payments more closely to outcomes, which can make revenue recognition more staggered and dependent on execution timelines.

Despite weak growth, Wipro maintained operating margins at 17.3% in the March quarter and 17.2% for the full year. “We maintained our margins in a narrow band even after absorbing… acquisition and salary increases,” Iyer explained.

Net profit for the quarter stood at ₹3,502 crore ($378 million), while operating cash flows remained above 100% of net income for the year.

The company also announced a ₹15,000 crore buyback. “This represents a return of excess cash… we still have enough for M&A, AI investments, and strategy execution,” Iyer said.

While both Wipro and TCS reported strong deal momentum and weak full-year growth, the latter has shown relatively better sequential execution and clearer AI monetisation.

In Q4, TCS’s revenue rose 5.4% sequentially to ₹70,698 crore ($7.64 billion), though constant currency (CC) growth was just 1.2%. For the full year, revenue grew 4.6% to ₹2.67 lakh crore ($29 billion), but declined 2.4% in CC terms—a historic decline. 

The company disclosed that its annualised AI revenue run rate crossed $2.3 billion. It reported a total contract value (TCV) of $40.7 billion for FY26, including $12 billion in Q4. 

But Wipro has significant financial flexibility for growth initiatives, and that may prove to be its trump card.