Wipro Q2 Results: Strong AI-Led Pipeline and Robust Demand in BFSI, Tech and Healthcare

Wipro reported a steady Q2 performance with sequential revenue growth in three of its four business units, driven by strong demand in BFSI, tech, and healthcare. The company's Q3 guidance suggests cautious optimism amid a still-volatile global environment. Wipro's pipeline remains robust, with a strong deal pipeline of $9.5 billion in total bookings for the first half of FY25. However, margins were hit by a one-off provision related to client insolvency.

Wipro Limited reported a steady performance in the second quarter of its fiscal year 2025, with sequential revenue growth in three of its four business units. The company's IT services revenue reached $2.6 billion, up by 0.3% sequentially in constant currency, and an adjusted operating margin of 17.2%, representing a 40 basis points year-on-year improvement, according to Wipro's Q2 25/26 earnings report.

The company's performance was driven by strong demand in the BFSI, technology, and healthcare sectors. In the Americas, the company saw sequential and year-on-year growth, primarily due to robust performance in healthcare and technology sectors. Europe returned to sequential growth after several quarters, led by the BFSI sector. APMEA growth was fueled by strong results in India, Australia, and Southeast Asia. Capco grew both sequentially and year-on-year, with momentum coming from newer markets like LatAm and APMEA.

Wipro signed $4.07 billion in total contract value across 13 large deals, including two mega renewals in healthcare and BFSI, and reported a strong order pipeline, particularly in Europe. The company's order bookings for the first half of FY25 stood at $9.5 billion in total bookings.

The company introduced Wipro Intelligence, a unified AI-powered platform suite with over 200 AI agents, aiming to drive client innovation and efficiency. This new platform brings together advanced capabilities across delivery and industry platforms, accelerating work and enabling clients to experiment, adapt, and scale rapidly.

However, the company's margins were impacted by a one-off charge related to a client bankruptcy event, which left the operating margin at 17.2%, in line with the company's narrow margin band. The company forecasted sequential IT services revenue growth of –0.5% to +1.5% in constant currency for Q3, prioritizing converting backlog into revenue while maintaining operational discipline, the earnings report said.