Wipro’s large‑deal bookings plunge to 19‑quarter low, CEO pledges Q3 rebound

⚡ Key Financial Takeaways

Large‑deal bookings fell 59% sequentially to $700 million in Q2 FY27, the lowest level in 19 quarters.

Total contract value (TCV) dropped 23% sequentially to $2.6 billion, a 15‑quarter low.

IT services revenue was flat at $2.61 billion, up 0.6% YoY in constant currency, with FY27 guidance of –1.5% to +0.5%.

Operating margin improved 50 basis points to 16.5% in Q2, though the target range remains 17‑17.5%.

Wipro’s AI‑native unit, launched in April, now has over 2,000 engineers and is central to its transformation strategy.

💡 Why It Matters

Wipro is one of India’s largest IT services exporters. A sharp dip in large‑deal bookings signals weakening demand for high‑value transformation projects, especially in the U.S. healthcare sector, which can affect the broader Indian IT earnings outlook and investor sentiment. The company’s reliance on pending contracts to revive Q3 bookings adds uncertainty, while its push into AI‑centric services reflects a strategic shift that could reshape its competitive positioning. ---

Large‑deal bookings hit multi‑year lows Wipro disclosed that its large‑deal bookings for the July‑September quarter fell to $700 million, a 59% sequential decline in constant‑currency terms. This marks the weakest performance in 19 quarters. The broader total contract value (TCV) also slipped, falling 23% to $2.6 billion – the lowest level in 15 quarters.

Deals slipping into Q3 Chief Executive Srinivas Pallia said several contracts awarded during Q2 were not signed before the quarter closed. Those pending agreements are expected to be finalised in the current quarter, which he described as “very, very bullish” for Q3 bookings. The company did not disclose the monetary value of the deals that have rolled over.

Revenue and margin outlook IT services revenue stood at $2.61 billion in Q2, essentially unchanged from the prior quarter and up 0.6% year‑on‑year in constant currency. Despite this modest growth, Wipro guided FY27 IT services revenue to a range of –1.5% to +0.5% in constant‑currency terms, citing seasonal furloughs and continued softness in the U.S. healthcare segment.

Operating margin widened by 50 basis points to 16.5% in Q2, though the company reiterated its preferred margin corridor of 17‑17.5%.

AI and consulting as growth engines Pallia highlighted a “consulting‑led, AI‑powered transformation” deal with a global financial institution and growing opportunities in the mid‑market. Wipro’s AI‑native unit, launched in April, now employs more than 2,000 engineers, including forward‑deployed specialists. The firm is expanding capabilities across AI services, AI infrastructure, physical AI and silicon engineering, aiming to capture larger transformation engagements as clients modernise legacy systems and embed AI.

Financial stewardship Chief Financial Officer Aparna Iyer reaffirmed the focus on margin improvement while continuing investments that support the AI and consulting thrust.

Outlook Wipro expects the pending Q2 deals to lift Q3 bookings and anticipates a gradual recovery in the second half of the fiscal year, provided the U.S. healthcare market stabilises and the AI‑driven pipeline materialises.

--- *The information above is based on Wipro’s Q2 FY27 results and statements made at the post‑results press conference.*

🏛️ Background & Context

Wipro had recorded five consecutive quarters of negative revenue growth up to Q4 FY26 before posting a modest 0.9% rise in Q1 FY27. The current slowdown follows a period of subdued growth across the Indian IT industry, driven by macro‑economic headwinds and sector‑specific challenges such as reduced spending in U.S. healthcare. The firm’s AI‑native unit, launched in April, is part of a broader industry trend where Indian IT firms are betting on artificial intelligence to win higher‑margin transformation work.

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👁️ What To Watch Next

Key indicators to monitor include: (1) the actual Q3 FY27 booking figures once the pending deals are signed; (2) whether IT services revenue stays within the –1.5% to +0.5% guidance; (3) progress on the AI‑native unit’s revenue contribution; and (4) any updates on the U.S. healthcare market that could influence future demand. ---