Wipro Sees Q1 Revenue Growth Slowing to 2%–3% on AI-Driven Client Delays
WIT•Wipro projects Q1 revenue growth of just 2%–3% year-over-year, down sharply from the prior quarter’s 8% gain, as major clients pause large IT deals while exploring AI applications. Sector-wide profit growth is expected below 5%, driven by weak demand in banking and retail verticals.
1. Q1 Revenue Growth Forecast
Analysts now expect Wipro’s fiscal Q1 revenue to rise only 2%–3% year-over-year, a notable slowdown from the previous quarter’s 8% increase, reflecting clients’ hesitancy to commit to large-scale IT engagements.
2. AI Shift Driving Client Caution
Key customers are postponing digital transformation contracts to evaluate potential AI use cases and cost-benefit trade-offs, delaying final decision-making on multi-million-dollar projects.
3. Vertical Impact and Profit Outlook
Weak spending in banking and retail sectors is dragging on growth, contributing to a combined profit increase forecast of under 5% for leading Indian IT firms this quarter.
