The buyback announcement came on Thursday alongside results showing that the Bengaluru-based firm is navigating a challenging demand environment shaped by cautious enterprise technology budgets, sector-specific slowdowns, and shifting client priorities.
For the quarter ended March 31, Wipro posted consolidated revenue of ₹242.36 billion ($2.60 billion), representing a 7.7% year-on-year increase. However, the figure slightly missed analyst expectations of ₹243.63 billion, according to LSEG data, underscoring lingering pressure on discretionary IT spending.
Profitability also saw a modest dip, with net profit falling 1.9% to ₹35.02 billion, just below market estimates. Performance across business segments was uneven, with three of five verticals recording declines. The energy segment led the downturn with a 5.9% drop, while the banking, financial services and insurance (BFSI) division—Wipro’s largest contributor accounting for roughly one-third of revenue—declined 0.5%.
Management attributed the softness in part to delayed technology spending by global clients, particularly in energy and banking sectors, as companies reassess budgets amid macroeconomic uncertainty, geopolitical tensions in the Middle East, and rapid adoption of artificial intelligence tools.
A key drag on revenue also came from reduced business with long-standing client Estee Lauder, which recently added Accenture as an additional IT vendor, diluting Wipro’s contribution from the account.
The broader IT sector has been grappling with concerns over AI-driven disruption and cautious enterprise spending. Earlier developments, including the release of automation-focused tools from AI firms such as Anthropic, have heightened investor concerns about potential shifts in traditional IT outsourcing demand.
Despite these headwinds, Wipro reported total deal wins of $3.5 billion for the quarter, an improvement from $3.33 billion in the previous quarter, though still below the $4 billion recorded a year earlier. The company also secured a deal with U.S.-based insurance provider TruStage, though contract value details were not disclosed.
Looking ahead, Wipro has guided for revenue in the current quarter to range between a 2% decline and flat growth on a sequential basis, translating to projected revenue of $2.6 billion to $2.65 billion.
The buyback move is widely viewed as an effort to return value to shareholders amid subdued growth prospects, even as the company continues to reposition itself in a rapidly evolving global technology landscape shaped by AI adoption and cautious enterprise investment.