Wipro Announces Record ₹150 Billion Buyback Amid Revenue Miss
Wipro has unveiled a record share buyback of up to ₹150 billion ($1.61 billion), even as the company reported a slight miss in quarterly revenue expectations, reflecting continued caution in global technology spending.
Revenue Growth Falls Short of Expectations
For the quarter ended March 31, Wipro reported consolidated revenue of ₹242.36 billion ($2.60 billion), marking a 7.7% year-on-year increase. However, the figure came in below analyst estimates of ₹243.63 billion, according to data compiled by LSEG.
Net profit declined marginally by 1.9% to ₹35.02 billion, also slightly under market expectations.
Demand Softness Across Key Sectors
The company’s performance was impacted by reduced client spending in key verticals, particularly energy and banking. The energy segment saw a 5.9% decline, while the banking vertical—Wipro’s largest, contributing roughly one-third of total revenue—fell by 0.5%.
Additionally, business from major client Estee Lauder slowed after the company onboarded Accenture as an additional IT vendor, affecting Wipro’s topline contribution.
Broader Industry Pressures
Wipro’s results reflect wider challenges facing the IT services sector, including delayed client spending amid geopolitical uncertainty and the growing impact of artificial intelligence.
Recent developments, such as the launch of AI tools by Anthropic, have intensified concerns about automation disrupting traditional IT services, contributing to cautious enterprise spending and a broader tech market selloff earlier this year.
Outlook Remains Muted
Looking ahead, Wipro expects first-quarter revenue to range between a 2% decline and flat growth sequentially, translating to approximately $2.6 billion to $2.65 billion.
Despite near-term headwinds, deal activity showed some improvement. Total contract wins reached $3.5 billion during the quarter, up from $3.33 billion in the previous quarter, though still below the $4 billion recorded a year earlier.
The company also announced a new deal with U.S.-based insurer TruStage, although financial details were not disclosed.
Industry Context
Wipro’s performance contrasts with rival Tata Consultancy Services, which recently reported stronger-than-expected quarterly results, easing concerns around the impact of AI on its core business.
Balancing Returns and Growth
The record buyback signals Wipro’s commitment to returning value to shareholders amid a challenging demand environment. However, the muted outlook highlights ongoing uncertainty as clients reassess technology investments in the face of AI disruption and macroeconomic volatility.
As the IT services sector adapts to shifting client priorities, the balance between cost optimization, innovation, and growth will remain a defining factor for companies like Wipro in the quarters ahead.
