Wipro Guides Current Quarter IT Services Revenue Down In Face Of Tariffs, Macroeconomic ‘Uncertainties’
‘The macroenvironment, in the context of tariffs, has created a lot of uncertainties to our clients, and this uncertainty varies from country to country, market to market, sector to sector. So if you look at it, the big markets that we have, which is the Americas and [Europe], clearly clients are going through uncertainties,’ says Wipro CEO and Managing Director Srini Pallia.
Global IT technology services and consulting company Wipro Wednesday said that the revenue growth it saw in its fourth fiscal quarter will likely turn into a pullback due to macroeconomic factors stemming from geopolitical uncertainties, particularly around the tariffs the U.S. is imposing worldwide.
The last 12 months has seen Wipro win two “megadeals,” which is clearly a strong sign that its large deal engine is working and continues to expand, said Wipro CEO and Managing Director Srini Pallia (pictured above) in prepared remarks during the company’s fiscal year 2025 financial analyst conference call.
“In fact, our clients have responded well to our consulting-led AI-powered industry and cross-industry solutions,” Pallia said. “This has reflected the strong growth in top accounts, and also large deal bookings in financial year 2025. We have continued to invest in our people, skilling them for the new AI wave. Our execution rigor with speed definitely has been acknowledged by our clients, and that’s reflected in a clear improvement in our client satisfaction scores. And we have done all of this while strengthening our margins.”
Wipro, with dual headquarters in East Brunswick, N.J. and Bangalore, India, was ranked No. 15 on CRN’s 2024 Solution Provider 500 list.
That growth was a meaningful achievement in the context of ongoing changes in the global industry environment, which remains uncertain for most of the year, Pallia said.
“And of course, the recent tariff announcements have only added to that,” he said. “I’ve been speaking to clients across sectors and across markets to understand how things are playing out on the ground. Even though the underlying demand for tech reinvention remains strong, our clients are approaching it more cautiously. They are focused on cost, speed, and of course AI-led efficiency, and that’s exactly where we are leaning in.”
During the question-and-answer period of the call, Pallia was asked about the uncertainties caused by the macroenvironment, which the company said will lead to an expected first fiscal quarter 2026 drop in IT services revenue of 1.5 percent to 3.5 percent compared to its fourth fiscal quarter 2025.
“In addition to the geopolitics, the macroenvironment, in the context of tariffs, has created a lot of uncertainties to our clients, and this uncertainty varies from country to country, market to market, sector to sector,” he said. “So if you look at it, the big markets that we have, which is the Americas and [Europe], clearly clients are going through uncertainties. Some industries, especially manufacturing [and] within that, automotive and industrial, if you look at it, they are really impacted with what’s going on. So first thing the clients would like to do is, ‘How do I reduce my spend at this point in time when there is uncertainty?’”
The consumer industry is also being impacted by inflation and uncertainties in consumer spending.
“I can tell you one example of a client where we’re doing a large transformation program for them,” he said. “They asked us to pause. It was not a cancelation, but it was pause because they wanted certainty of what’s going to go.”
In the banking and financial sector, discretionary spending is being debated internally by clients, Pallia said.
“If the tariffs and other things settle down, hopefully they will, [but clients will] be conservative until such time they have clarity,” he said. “So the issue is more than the tariffs and uncertainty as to where it is going to end. … Europe is also going to be impacted because there’s a huge trade balance between trade happening between Europe and the U.S., and that’s going to impact them. And also what happens to the tariffs on China will have an impact on our European clients and on the U.S. clients.”
Even so, Wipro’s pipelines across its Americas and Europe markets continue to be strong, and the company is focused on closing deals going into the next quarter, Pallia said.
“Having said that, the point that we are really watching is the discretionary spend,” he said. “Hopefully in the next couple of weeks, there is new support, the settlement of the tariffs, whatever that is, to actually let clients make decisions. I’m very cautious about telling you what’s going to happen, because things are changing by the week. So we will sense and respond to the situation. Our clients are doing what I would say is situational planning based upon what they’re hearing. So what is very important for me and the entire Team Wipro is to stay close to the clients, to listen and respond.”
Wipro by the numbers
For its fiscal fourth quarter 2025, which ended March 31, Wipro reported total gross revenue of $2.63 billion, up 1.3 percent over that of its fourth fiscal quarter 2024. This included IT services revenue of $2.60 billion, down 2.3 percent over last year.
Net income for the quarter was reported at $417.8 million or 4 cents per share, both up by over 6 percent over last year.
For its full fiscal 2025, Wipro reported gross revenue of $10.40 billion, down year-over-year by 0.7 percent. This included IT services revenue of $10.51 billion.
Net income for the year was reported to be $1.54 billion or 15 cents per share, up 19 percent and 20 percent respectively over last year.
