• IT Services Revenue (Q4): $2.6 billion, a sequential decline of 0.8% and 1.2% year-on-year.
• IT Services Revenue (FY25): $10.51 billion, a year-on-year decline of 2.3%.
• Operating Margin (Q4): 17.5%, flat sequentially, 110 basis point expansion year-on-year.
• Operating Margin (FY25): 17.1%, an expansion of 0.9% compared to FY24.
• Net Income (Q4): Grew 6% quarter-on-quarter.
• Net Income (FY25): Grew 19% year-on-year.
• EPS (FY25): INR 12.6, a growth of 20% year-on-year.
• Free Cash Flow as % of Net Income (FY25): 118%.
• Gross Cash (Including Investments): $6.4 billion.
• Large Deal Bookings (Q4): $1.8 billion across 17 deals.
• Large Deal Bookings (FY25): $5.4 billion, a year-on-year growth of 17.5%.
• Guidance for IT Services Revenue (Q1 FY26): $2.505 billion to $2.557 billion, a sequential decline of 3.5% to 1.5% in constant currency terms.

• Warning! GuruFocus has detected 3 Warning Sign with WIT.

Release Date: April 16, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Wipro Ltd (NYSE:WIT) secured two mega deals this year, indicating a strong performance of their large deal engine.
• The company reported a 13.4% sequential growth in order bookings for Q4, with a total of $4.0 billion.
• Operating margins improved to 17.5% in Q4, marking a 110 basis point expansion year-on-year.
• Wipro Ltd (NYSE:WIT) closed 63 large deals in FY25, totaling $5.4 billion, a 17.5% year-on-year growth.
• The company has a strong pipeline of deals in Europe, which is expected to contribute positively in the coming quarters.

Negative Points

• IT Services revenue for Q4 declined by 0.8% sequentially and 1.2% year-on-year.
• Full-year IT services revenue declined by 2.3% in constant currency terms.
• The company is facing headwinds due to an uncertain macroeconomic environment, impacting revenue growth.
• Europe showed a year-on-year revenue decline of 6.9%, with challenges persisting in the region.
• Guidance for Q1 FY26 indicates a sequential decline in revenue of between 3.5% and 1.5% in constant currency terms.

Q & A Highlights

Q: Which verticals are currently experiencing the highest impact due to the economic environment? A: Srini Pallia, CEO, noted that the economic uncertainty, particularly due to tariff increases, is impacting sectors like consumer, manufacturing, automotive, and industrial. Clients across these sectors are adopting a cautious approach and engaging in scenario planning to navigate the uncertainty.

Q: How is the BFSI sector performing, particularly in the US and Europe? A: Srini Pallia explained that while there is good traction in BFSI in the US and APMEA, Europe is facing headwinds. The sector is seeing opportunities in IT infrastructure modernization, business process services, cybersecurity, and consulting. Clients are also exploring AI-powered solutions for asset and wealth management, insurance platform digitization, and payments.

Q: What is causing the poor conversion of deal bookings into revenue growth? A: Aparna Iyer, CFO, stated that the timing of large deals and their ramp-up schedules contribute to the gap between bookings and revenue. Additionally, ramp-downs due to lower discretionary spending and project delays are affecting revenue growth. The company aims to win more deals to fill this gap.

Q: What is driving the continued pressure in Europe, and how is it affecting margins? A: Srini Pallia highlighted that Europe has shown degrowth, but a new leadership team and a strong pipeline of deals, including a large deal with Phoenix Steel, are expected to improve the situation. Aparna Iyer added that while Capco has improved, other ramp-downs in Europe are impacting margins. A large deal win is expected to help margins recover in the second half of the year.

Q: How is Wipro addressing the macroeconomic challenges and potential revenue decline in FY26? A: Srini Pallia mentioned that the company is closely monitoring the macroeconomic situation and client responses. The guidance for Q1 reflects the best visibility available, and the company is focusing on closing deals quickly to stabilize and grow revenue. Aparna Iyer noted that maintaining margins will be challenging, but the company will focus on cost management and productivity improvements.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.