Wipro defies market slump with 18.9% profit surge, AI focus
BENGALURU, INDIA — Wipro has delivered a strong financial performance in FY25, with net income climbing 18.9% year-over-year despite a challenging market environment.
The IT services giant’s strategic emphasis on large deals and artificial intelligence capabilities helped offset a 2.3% decline in IT services revenue, demonstrating resilience in uncertain economic conditions.
Profitability triumphs over revenue challenges
The financial performance of Wipro demonstrates how margin improvement successfully compensated for declining revenue numbers.
Operational margins in Q4 reached 17.5% with a 110 basis point growth from the previous year’s results and ended at 17.1% in full-year results with 90 basis point expansion. This disciplined financial management translated to net income growth of 18.9% for fiscal year 2025.
The margin improvement story becomes more impressive considering the revenue context. IT services revenue actually declined 2.3% year-over-year in constant currency terms, highlighting Wipro’s ability to maintain profitability through operational efficiency and cost optimization.
Chief Financial Officer, Aparna Iyer, attributed this performance to execution rigor in a softening revenue environment, with the company generating robust operating cash flows at 128.2% of net income for the full year.
Large deal momentum offsets market caution
Wipro’s deal engine fired on all cylinders in Q4, with large deal bookings growing to 48.5% year-over-year. This brought the full-year large deal total to $5.4 billion, up 17.5% from fiscal year 2024.
The company secured several transformative engagements, including a landmark 10-year contract with UK’s Phoenix Group to modernize pension administration using AI and cloud technologies.
Wipro demonstrates its strategic makeover through its collection of high-value long-term contracts focused on financial services and healthcare and energy industries.
The CEO, Srini Pallia, cited both the victories and increased business from key customers alongside enhanced survey ratings as evidence that company success exists amid client worries about the economy.
AI and industry-specific solutions drive differentiation
Wipro is aggressively positioning itself as an AI leader, with several notable developments in Q4. Through its GenAI Center of Excellence service a major U.S. utility received implementation of the AI-powered NextGen AMS solution for an energy giant.
The company strengthens its position as an AI services market leader through various initiatives that received awards from Gartner along with ISG.
The company’s industry-focused approach is yielding dividends, particularly in healthcare where its “Payer-in-a-box” Medicare platform won expanded engagements.
Wipro’s investments in sector-specific solutions like smart operations for manufacturing and AI-driven security for engineering firms, are helping it stand out in a crowded market.
With voluntary attrition to 15% and continued talent investments, Wipro appears well-positioned to capitalize on the AI transformation wave.
Wipro recently soared to rank #3 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies.
