Indian IT services giant Wipro Ltd announced its financial results for the first quarter ending June 30, 2026, on July 16. The company reported a consolidated net profit of 335.2 billion rupees for the quarter, a slight increase of 0.6% compared to the 333.0 billion rupees reported in the same period last year, though it declined by 4.3% sequentially. Quarterly operating revenue reached 2447.9 billion rupees, marking a year-on-year increase of 10.6% and a modest sequential growth of 1%.
Performance in the core IT services segment was mixed. Revenue for this segment was $2.61 billion, representing a 1% year-on-year increase but a sequential decline of 1.4%. The operating margin for IT services contracted to 16.0%, down 130 basis points from the previous quarter. This pressure was attributed to factors including wage increases, investments in launching large projects, and ongoing expenditures in the artificial intelligence field. Chief Financial Officer Aparna Iyer noted that some of these cost pressures were partially offset by gains from foreign exchange rate movements.
Regarding new project signings, the company's total contract value for the quarter stood at $3.37 billion, down 2.4% sequentially. However, large deal bookings were strong at $1.63 billion, showing a sequential increase of 12.9%, with a total of 13 major deals signed. The Wipro board declared an interim dividend of 2 rupees per share. The record date for eligibility is set for July 27, with the dividend payment scheduled to be made by August 14.
Looking ahead to the second quarter, Wipro provided guidance for its IT services business revenue to be in the range of $2.574 billion to $2.627 billion. This translates to a projected sequential change ranging from a decline of 1.5% to a growth of 0.5%. Chief Executive Officer Srini Pallia commented that clients are shifting their focus from technological modernization to AI-powered operating models aimed at enhancing quality and productivity. He stated that the company's consulting-led, AI-driven strategy is assisting clients in embedding artificial intelligence at the core of their business operations.
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