Wipro Q1 Preview: Under pressure from AI, what can investors expect from earnings?

Analysts expect Wipro to report a sequential decline of 1 to 1.5 percent in constant-currency IT services revenue for Q1, with margins likely to contract by 50 to 130 basis points due to wage hikes, large-deal ramp-up costs and AI-related investments. The BFSI vertical is expected to remain weak on softer US banking demand and client-specific issues, while acquisitions such as Mindsprint and Alpha Net may only partially offset the softness. September-quarter guidance is anticipated to be cautious, ranging from a 2 percent decline to flat growth, as AI-led pricing pressure and delayed deal conversions continue to weigh on the company.