Wipro has reported a sharp rise in new deal wins during the first quarter of FY26, signaling a potential turnaround after facing growth challenges over the past year. The IT services company announced a 24% quarterly jump in new deal wins, bringing the total value of contracts signed in Q1 FY26 to nearly $5 billion. This is also a 50% rise compared to the same quarter last year, showing strong demand across key markets. The surge in new deals, along with improved profit and steady margins, may suggest that Wipro is on its way to a recovery.
Here’s a detailed look at the numbers, the reasons behind the rise in deal wins, and whether this marks a real turning point for Wipro.
Wipro secured contracts worth $5 billion in total contract value during the April to June 2025 quarter. This is a 24% increase over the previous quarter and a 51% increase from the same period last year. What stands out is the strength in large deals—those valued above $30 million—which added up to around $2.66 billion, showing a 131% rise year-on-year.
In total, sixteen large deals were signed, including two mega-deals. These high-value contracts are expected to deliver steady revenue over the next 6 to 8 quarters. Many of these contracts came from sectors such as banking, healthcare, and communications, and involved work around cloud services, digital transformation, and AI.
Wipro reported a net profit of ₹3,330 crore in Q1 FY26. This is an increase of 11% year-on-year and slightly above market expectations. The higher profit came despite a modest increase in revenue, which rose by only 0.8% year-on-year to reach ₹22,134 crore or about $2.57 billion.
However, when adjusting for currency fluctuations (known as constant currency growth), the company’s revenue actually fell by 2.3% compared to the previous year. This drop was mostly due to slower growth in key business sectors like technology, manufacturing, and retail. Only healthcare and financial services showed positive momentum.
So while profits improved, overall revenue growth remained sluggish, highlighting the gap between future promise and current performance.
Wipro’s operating margin—a key indicator of how much profit the company makes from its core operations—stood at 17.3% in Q1. This is 80 basis points higher than the same quarter last year, although slightly lower than the margin in the previous quarter. The company also reported strong operating cash flow, which stood at 123% of its net profit.
These numbers suggest that Wipro is managing its operations efficiently, keeping costs under control, and maintaining healthy profitability even as revenue growth remains under pressure. The board also declared a ₹5 per share interim dividend, showing that the company remains confident about its financial strength.
Wipro is shifting its strategy to focus more on artificial intelligence (AI) and cost optimization. Many of the large deals signed in Q1 are related to vendor consolidation, where clients reduce the number of IT partners and choose larger, more efficient providers like Wipro.
The company has also invested heavily in agentic and generative AI. It has developed more than 200 AI-powered digital agents designed to help businesses automate tasks and make faster decisions. This move aligns Wipro with the latest trends in the tech industry, where companies are looking to modernize their operations and use AI to gain an edge.
By positioning AI as a core offering—not just a trend—Wipro aims to deliver long-term value to clients.
Wipro’s performance varied across different markets and business segments:
Americas, especially the United States, continued to perform well with around 1.5% year-on-year growth, supported by strong demand in healthcare and telecom.
Asia Pacific, Middle East, and Africa (APMEA) showed flat growth, with mixed results across countries like India, UAE, and Singapore.
Europe remained a weak spot due to economic challenges and slower client spending.
Banking and financial services (BFSI) emerged as a strong area, with two of the biggest deals in the quarter coming from this sector.
The mixed regional performance shows that while Wipro is growing in some areas, it still faces macroeconomic headwinds in others.
Wipro’s total workforce remained steady at around 233,000 employees. Attrition—or the rate at which employees leave the company—came down slightly to 15.1%, which is a positive trend.
Stabilizing the workforce is important as the company prepares to deliver on its new contracts. High employee turnover can affect project delivery and client satisfaction. By keeping attrition under control, Wipro is trying to ensure better execution and delivery quality for its new clients.
Wipro’s stock saw a positive response after the Q1 earnings were announced. Its American Depository Receipts (ADRs) rose more than 5% in overseas trading. Investors welcomed the higher profit and the strong pipeline of new deals.
The response from domestic investors was also largely positive, with the stock trading higher on the next day. This shows growing market confidence in Wipro’s long-term prospects, even though current revenue growth remains slow.
Wipro’s management gave a cautious revenue guidance for Q2 FY26, forecasting flat to 1% growth in constant currency terms. This suggests that while new deals have been signed, the benefits will take time to reflect in the company’s financials.
Several risks still exist. The company remains exposed to global economic uncertainty, particularly in Europe. Many clients are reducing or delaying spending on non-essential IT projects. In addition, the revenue from new large deals may only begin to appear in late FY26 or early FY27.
So while the company is laying the groundwork for future growth, the near-term outlook remains conservative.
The 24% jump in deal wins is clearly a positive sign. Wipro is winning large contracts, showing that clients trust the company’s capabilities. Its focus on AI, cloud, and digital transformation aligns well with future technology needs. Profit growth and stable margins also show good internal financial control.
However, it’s too early to say that Wipro is fully back on a growth track. Revenue growth remains slow, and macroeconomic conditions still pose a challenge. Execution of these large contracts will be key to turning the strong pipeline into actual revenue.
If Wipro can deliver well, control costs, and show steady improvement in growth over the next few quarters, then Q1 FY26 may be remembered as the beginning of a real turnaround.
Wipro’s performance in Q1 FY26 reflects a company that is stabilizing after a difficult year and preparing for a stronger future. With a 24% rise in deal wins, a healthy profit increase, and a solid focus on AI and digital services, Wipro is building momentum. The company is not entirely out of the woods, but the foundations for growth are clearly being laid.
The coming quarters will be crucial. Execution, client confidence, and consistent revenue growth will decide whether this promising quarter leads to sustained success. For now, the signs are hopeful—and worth watching.