Wipro Faces Revenue Decline Amid Client Caution

BENGALURU: Wipro's recent financial performance has highlighted the challenges posed by market uncertainties, with clients adopting a more cautious approach despite a strong demand for transformation projects.

The company's Q4 results did not meet investor expectations, leading to a nearly 3% drop in its stock price during early trading on the New York Stock Exchange.

Financial Performance Overview

Wipro reported a 1.2% decline in constant currency revenue for the March quarter compared to the previous year, marking the second consecutive year of revenue drop. Sequentially, revenue also saw a 0.8% decrease.

CEO's Insight on Market Dynamics

"The current macro environment, especially with tariffs, has introduced significant uncertainties for our clients. Despite the robust demand for technological innovation, clients are prioritizing cost efficiency and AI-led solutions," explained Wipro CEO Srini Pallia during the earnings press conference.

He further noted that clients are particularly cautious about large transformation programs and discretionary spending, leading to a projected sequential growth of -3.5% to -1.5% in constant currency terms for the June quarter.