Company Reports

Wipro provides a variety of IT services, including consulting, business process outsourcing, and customized application development. Similar to other Indian IT consultants, Wipro’s business model benefits from the arbitrage of salary differences between India and developed markets. However, many of Wipro’s India-based employees are with its business process outsourcing unit, where they handle repetitive workflows in customer support or administration. Since BPO work is usually less value-additive for customers than consulting projects, the labor arbitrage effect Wipro enjoys is also weaker than that of peers Tata Consultancy and Infosys.

Wipro's second-quarter revenue of INR 248 billion increased 0.6% year over year in constant currency. Operating margin improved 50 basis points sequentially to 16.5%. Total contract value of $2.6 billion and large deal bookings of $674 million were both at the lowest level in more than three years.

Wipro's fiscal first-quarter constant-currency revenue growth of 1% year over year was at the midpoint of the guided range. Operating margin of 16% was flat with a year ago, as rupee depreciation benefits offset salary increases and continued investment in artificial intelligence.

Wipro provides a variety of IT services, including consulting, business process outsourcing, and customized application development. Similar to other Indian IT consultants, Wipro’s business model benefits from the arbitrage of salary differences between India and developed markets. However, many of Wipro’s India-based employees are with its business process outsourcing unit, where they handle repetitive workflows in customer support or administration. Since BPO work is usually less value-additive for customers than consulting projects, the labor arbitrage effect Wipro enjoys is also weaker than that of peers Tata Consultancy and Infosys.

Wipro's fourth-quarter revenue grew 8% year over year to INR 242 billion, benefiting from the Indian rupee's weakness. The company's full-year operating margin expansion of 20 basis points was healthy, but its fourth-quarter operating margin contraction over last year missed our expectations.

Wipro provides a variety of IT services, including consulting, business process outsourcing, and customized application development. Similar to other Indian IT consultants, Wipro’s business model benefits from the arbitrage of salary differences between India and developed markets. However, many of Wipro’s India-based employees are with its business process outsourcing unit, where they handle repetitive workflows in customer support or administration. Since BPO work is usually less value-additive for customers than consulting projects, the labor arbitrage effect Wipro enjoys is also weaker than that of its peers, Tata Consultancy and Infosys.

We've lowered our Morningstar Economic Moat Ratings for five IT services companies after reviewing artificial intelligence's potential disruption of the global technology sector.

Wipro provides a variety of IT services, including consulting, business process outsourcing, and customized application development. Similar to other Indian IT consultants, Wipro’s business model benefits from the arbitrage of salary differences between India and developed markets. However, many of Wipro’s India-based employees are with its business process outsourcing unit, where they handle repetitive workflows in customer support or administration. Since BPO work is usually less value-additive for customers than consulting projects, the labor arbitrage effect Wipro enjoys is also weaker than that of its peers, Tata Consultancy and Infosys.

Wipro's performance notably improved this quarter, with revenue up 6% year over year to INR 236 billion, catching up with its Indian IT consulting peers. Adjusted operating margin of 17.6% also reached a new high in a tough environment where clients scrutinize their post-pandemic IT demand.

Wipro provides a variety of IT services, including consulting, business process outsourcing, and customized application development. Similar to other Indian IT consultants, Wipro’s business model benefits from the arbitrage of salary differences between India and developed markets. However, many of Wipro’s India-based employees are with its business process outsourcing unit, where they handle repetitive workflows in customer support or administration. Since BPO work is usually less value-additive for customers than consulting projects, the labor arbitrage effect Wipro enjoys is also weaker than that of its peers, Tata Consultancy and Infosys.

Wipro reported fiscal 2026 second-quarter revenue of INR 227 billion, down 3% year over year in constant currency. Total bookings grew 31% year over year in constant currency to $4.7 billion due to strength in large deal bookings, resulting in a book/bill ratio of over 1.8.

Wipro provides a variety of IT services, including consulting, business process outsourcing, and customized application development. Similar to other Indian IT consultants, Wipro’s business model benefits from the arbitrage of salary differences between India and developed markets. However, many of Wipro’s India-based employees are with its business process outsourcing unit, where they handle repetitive workflows in customer support or administration. Since BPO work is usually less value-additive for customers than consulting projects, the labor arbitrage effect Wipro enjoys is also weaker than that of its peers, Tata Consultancy and Infosys.

Bloomberg reported on Sept. 19 that President Donald Trump is expected to announce a new $100,000 fee on H-1B visa applications. Shares are down up to 5% for IT services providers with high offshore leverage, including Cognizant, Infosys, and Wipro.

Wipro provides a variety of IT services, including consulting, business process outsourcing, and customized application development. Similar to other Indian IT consultants, Wipro’s business model benefits from the arbitrage of salary differences between India and developed markets. However, many of Wipro’s India-based employees are with its business process outsourcing unit, where they handle repetitive workflows in customer support or administration. Since BPO work is usually less value-additive for customers than consulting projects, the labor arbitrage effect Wipro enjoys is also weaker than that of its peers, Tata Consultancy and Infosys.

We are transferring coverage of three major Indian IT services companies—Tata Consultancy Services, Infosys, and Wipro. These companies leverage low-cost offshore labor to deliver a variety of IT services, including consulting and business process outsourcing.

Wipro delivered a solid start to fiscal 2026, with revenue growing 1% in constant currency to INR 221 billion. Total bookings jumped 51% year-over-year to $5 billion, resulting in a book/bill ratio of over 1.9 and laying a foundation for sustainable long-term growth.

Narrow-moat Wipro reported fiscal 2025 fourth-quarter results that fell short of our and consensus’ estimates for revenue and profitability. We view this as a short-term issue amid ongoing macroeconomic and geopolitical uncertainties but recognize the risks to near- to medium-term demand if conditions continue to deteriorate. Management gave conservative guidance for the upcoming quarter, citing restrained discretionary spending and project delays, and we have adjusted our estimates accordingly. As a result, we have reduced our fair value estimate to INR 229/$2.67 per share from INR 241/$2.78. We view the shares as slightly overvalued.

Wipro is a leading global IT services provider with offerings ranging from software implementation to digital transformation consulting and servicing business operations teams. We think Wipro merits a narrow economic moat rating, like many of its peers, as we believe it benefits from switching costs and intangible assets, although we also see it benefiting from a cost advantage.

Narrow-moat Wipro reported decent earnings, which exceeded both our top- and bottom-line expectations. Management expects sales to remain roughly flat year over year in constant currency terms. The updated guidance implies results below our previous projections for the year, but we continue to be optimistic about a return in IT spending to drive long-term growth.

Wipro is a leading global IT services provider with offerings ranging from software implementation to digital transformation consulting and servicing business operations teams. We think Wipro merits a narrow economic moat rating, like many of its peers, as we believe it benefits from switching costs and intangible assets, although we also see it benefiting from a cost advantage.