Updated Aug 6 at 2:34pm ET.
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Federal Reserve officials are beginning to look at whether the massive amount of money being poured into artificial intelligence is getting out of hand. They are concerned that this frenzied buildout could eventually create risks for the broader financial sector.
This matters for Wipro because its turnaround plan relies heavily on its Wipro Intelligence platform and converting AI experiments into paid consulting work. If the central bank or major lenders start to see AI spending as a risk rather than a necessity, the corporate clients Wipro serves might slow down their technology projects to save cash.
Source: Reuters
Wipro has expanded its partnership with Databricks, a company that helps businesses organize and analyze large amounts of data. The goal is to help Wipro's clients build better data foundations so they can adopt AI tools more quickly. This is a small but helpful step for Wipro's strategy. To grow its profits again, the company needs to move beyond basic IT maintenance and win more high-end consulting work that helps clients implement new technologies like AI.
Source: Business Wire
Wipro brought in about 2.54 billion dollars in revenue for the quarter, which was lower than the 2.60 billion dollars analysts expected. While total revenue grew about 10 percent compared to last year, the core IT services business saw a slight decline from the previous quarter when adjusted for currency swings.
The company did see a bright spot in large deals, which reached 1.6 billion dollars. This is a 13 percent increase from the prior quarter and shows that Wipro is still winning significant, multi-year contracts despite a tough environment. Management noted that many clients are currently cautious about spending on projects that are not absolutely necessary due to global economic uncertainty. For those watching the turnaround, these results show the business is still searching for steady footing. The growth in large deals is a good sign for future revenue, but the overall miss suggests that the recovery in discretionary tech spending is taking longer than hoped.
Analysts have been quiet recently, with only one firm updating its view since early 2025. Most experts are cautious, as 17 of 21 analysts rate the stock as neutral or bearish, even though the average target suggests 269% upside.
Wipro consistently meets the low bars set by analysts, but its revenue has been shrinking slightly as it struggles to keep pace with its larger rivals.
| Expectation | |
|---|---|
| EPS | $0.04 |
| Revenue | $2.53B |
