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NEW YORK - Wipro Limited (NYSE:WIT) shares dropped 2.7% after the Indian IT services company provided lower-than-expected revenue guidance for the second quarter, overshadowing in-line first quarter results.
The Bangalore-based firm reported first quarter earnings per share of $0.04, matching analyst estimates. Revenue was also in-line with analyst expectations, coming in at $2.64 billion.
Wipro forecast second quarter revenue between $2.51 billion and $2.56 billion, below the consensus estimate of $2.66 billion. This guidance implies a sequential decline of 1.5% to 3.5% in constant currency terms.
"We closed FY25 with two mega deal wins, an increase in large deal bookings, and growth in our top accounts," said CEO Srini Pallia. "As clients remain cautious in the face of macroeconomic uncertainty, we’re focused on partnering closely with them while staying committed to consistent and profitable growth."
The company reported that its IT services operating margin for the fourth quarter of fiscal 2025 was 17.5%, flat quarter-over-quarter but up 1.1% YoY. Net income for Q4 grew 6.4% sequentially to Rs 35.7 billion ($417.8 million).
For the full fiscal year 2025, Wipro’s gross revenue decreased 0.7% YoY to Rs 890.9 billion ($10.4 billion). However, net income rose 18.9% YoY to Rs 131.4 billion ($1.54 billion).
CFO Aparna Iyer noted, "Our focus on execution rigour has ensured that our margins have steadily expanded even in a softening revenue environment. Our endeavor will be to maintain the margin in a narrow band in the coming quarters."
The modest stock decline reflects investor concerns about near-term growth prospects amid cautious client spending in an uncertain economic environment.
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