Wipro (NYSE:WIT) reported flat sequential IT services revenue for its fiscal second quarter ended Sept. 30, 2026, as demand remained centered on cost efficiency and productivity initiatives, while clients increasingly pursued artificial intelligence-led transformation programs.
Chief Executive Officer and Managing Director Srini Pallia said the broader demand environment was “largely unchanged,” with clients balancing near-term efficiency efforts against longer-term investments in AI adoption. The company reported IT services revenue of $2.61 billion, flat sequentially in constant currency and up 0.6% from a year earlier.
Bookings and AI Transformation Focus
Wipro closed $2.6 billion in total contract value during the quarter and signed nine large deals. Pallia acknowledged that overall bookings were lower during the period, saying a few deals awarded to Wipro were not signed before quarter-end and are expected to be reflected in third-quarter bookings.
“We are very bullish about our quarter three bookings performance,” Pallia said, adding that delayed paperwork, rather than a change in demand, contributed to the timing of the contracts.
The company highlighted a consulting-led engagement with a global financial institution to introduce an AI-enabled operating model. Under the engagement, Wipro will modernize software development, seek to improve efficiency throughout the change lifecycle and expand AI-powered work practices.
Wipro also cited a deal with a mid-market consumer products company to establish an AI capability center in India. The work will include enterprise resource planning modernization, cloud-native platforms and AI capabilities intended to improve engineering productivity and strengthen the client’s global delivery model.
Pallia said Wipro’s AI-native unit, launched in April, now has more than 2,000 engineers, including forward-deployed engineers. The unit has supported deployments including a small language model for a major U.S. retail bank, an AI-powered digital plant for a Middle Eastern petrochemical company, and enrollment and billing capabilities for a U.S. healthcare payer.
While Wipro does not separately disclose AI revenue, Pallia said the company tracks it internally and is focused on embedding AI across build, run and transformation engagements. He said the company does not want to repeat the experience of broadly categorizing revenue as “digital” without sufficient distinction.
Regional and Sector Performance
Three of Wipro’s four strategic market units recorded sequential growth in constant currency. Americas 1 declined 2% sequentially and 2.7% year over year, which management attributed to a client-specific issue and softness in healthcare. Americas 2 grew 0.9% sequentially but declined 4.7% from a year earlier.
Europe grew 0.6% sequentially and 5.1% year over year, while the Asia-Pacific, Middle East and Africa, or APMEA, unit increased 3.1% sequentially and 13.3% year over year.
- BFSI: Revenue rose 1% sequentially and 1.3% year over year.
- Consumer: Revenue increased 2.6% sequentially and 6% year over year.
- Technology and communications: Revenue declined 2.6% sequentially but rose 7% year over year.
- Health: Revenue fell 3.8% sequentially and 6.5% year over year.
- Energy, manufacturing and resources: Revenue rose 1.1% sequentially and declined 6% year over year.
Iyer said banking had a particularly strong quarter, with sequential growth of 4%, while Capco also grew 4% sequentially. Pallia said the BFSI pipeline remains strong across the Americas, Europe and Asia-Pacific, supported by client interest in AI adoption, cost optimization and vendor consolidation.
In healthcare, Wipro expects continued softness tied to lower membership enrollments and U.S. policy changes. Iyer said the company has factored that impact into its third-quarter outlook and expects much of the Americas 1 client-specific issue to be behind it after the upcoming quarter.
Outlook, Margins and Talent Strategy
For the fiscal third quarter, Wipro forecast IT services revenue of $2.571 billion to $2.625 billion, representing constant-currency sequential growth of negative 1.5% to positive 0.5%. Management said the outlook reflects the seasonal impact of client furloughs.
Iyer said Wipro aims to improve margins consistently while retaining room for growth investments. The company continues to view an operating margin range of 17% to 17.5% as sustainable over time.
AI tools are becoming an important contributor to profitability, particularly in fixed-price engagements, according to Iyer. She said the company’s Agent Hive platform, including WINGS and WEGA, helps improve productivity in those programs and was a significant factor in the quarter’s operational improvement.
On talent, Chief Human Resources Officer Saurabh Govil said Wipro onboarded about 1,000 freshers in the first half of the fiscal year and expects to add more in the second half, with activity weighted toward the fourth quarter. The company hired about 7,500 freshers in the prior fiscal year and intends to maintain that annual hiring level, subject to demand conditions.
Govil said headcount trends should be considered alongside demand, utilization, attrition and hiring. Wipro sees room to improve utilization and said attrition has remained broadly stable. Pallia added that the company has increased U.S. workforce localization from below 40% to about 80% over several years, reducing its exposure to potential changes related to permanent residency filings.
About Wipro (NYSE:WIT)
Wipro Limited (NYSE:WIT) is an India-based technology services and consulting company that helps businesses modernize operations, develop digital products and manage technology infrastructure. Its services include consulting, application development and management, cloud computing, cybersecurity, data and analytics, artificial intelligence, engineering, and business process services.
The company serves clients across industries including financial services, healthcare, consumer and retail, communications, energy, manufacturing, and technology.
