Wipro Posts Better-than-Expected Q1; Stock Ends Over 2% Higher

Wipro’s share closed over 2% higher, even as the Nifty fell by more than 0.5%. This happened after Wipro announced its Q1 FY26 results. In this blog, we will cover all key details from Wipro’s Q1 FY26 results. This includes its overall performance, segment-wise revenue, and the company’s guidance for the next quarter.

What are the highlights of Wipro Q1 Results?

• Wipro earned ₹22,135 crore in revenue during the quarter. This is a 0.8% increase compared to ₹21,964 crore in the same quarter last year.
• Company revenue in constant currency terms was $2.59 Bn, which is down 2.2% when compared to the same quarter last year.
• Its profit for the quarter was ₹3,336 crore, which is 9.8% higher than ₹3,037 crore a year ago.

Constant Currency View

• Wipro’s revenue in constant currency terms dropped 2.3% year-on-year.
• This matters because most of Wipro’s clients are in the US and Europe and pay in foreign currency.
• Changes in the rupee’s value can make the revenue appear higher or lower in Indian terms.
• Constant currency shows the actual growth without the impact of exchange rate changes.

Wipro Segment-wise Revenue

Most of the revenue the company derives from IT services, but it also earns a small chunk of revenue from IT products. Here is the breakdown of the 2 segments.

• Total IT Services revenue was ₹22,080 crore, which is lower than last quarter (₹22,445.3 crore) but higher than Q1 FY25 (₹21,896.3 million).
• IT Products brought in ₹72.8 crore, a drop from ₹81.3 crore in the last quarter but higher than ₹46.9 crore in the same quarter last year.

IT services, geography-wise, Revenue Segmentation

In Q1 FY26, Wipro earned ₹22,080 crore from its IT services business. Here's the revenue and contribution from each region:

• Americas 1 earned ₹7,309.7 crore, contributing 33.1% of IT services revenue.
• Americas 2 brought in ₹6,707.0 crore, making up 30.4%.
• Europe generated ₹5,681.7 crore, accounting for 25.7%.
• APMEA (Asia Pacific, Middle East & Africa) contributed ₹2,381.6 crore, or 10.8%.

Which sector contributed to the revenue of Wipro

• Banking, Financial Services and Insurance (BFSI) contributed the largest share at 33.6%.
• Consumer sector made up 18.6% of the total revenue.
• Energy, Manufacturing and Resources accounted for 17.7%.
• Technology and Communications contributed 15.5%.
• Health segment made up 14.6% of the revenue.

Why the Wipro Share price is increasing

• Wipro’s reported revenue beat its estimates.
• It had expected IT services revenue to be between $2,505 million and $2,557 million for Q1 FY26. On the other hand, reported revenue $2,587 million, which is higher than expected.
• This helped boost investor confidence, even though growth in constant currency terms was negative.
• Total order booking(TCV) for the period is $4,971 million, which is 51% higher than the same quarter previous year.

Outlook for Q2 FY26

• Wipro expects its IT services revenue for the next quarter to be between $2,560 million and $2,612 million.
• In constant currency terms, this means a possible growth of -1.0% to +1.0%.

Peer Comparison

• In constant currency terms, Wipro’s revenue fell by 2.3% year-on-year.
• TCS saw a drop of 3.1%.
• HCLTech performed better, with a growth of 3.7%.

Summary

• Wipro’s revenue and profit increased compared to the same quarter last year.
• But in constant currency terms, the revenue declined.
• The company earns most of its revenue in dollars and euros. Changes in the rupee’s value affect the Indian figures.
• Still, Wipro beat market estimates, which supported the share price.
• Among top IT companies, HCLTech saw the strongest growth, while Wipro and TCS saw declines.

Source: Company filing, Screener
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