India’s tech giant Wipro’s IT services revenue remained flat sequentially in constant-currency terms in Q2 FY27. Its large-deal bookings fell 58.6% to $ 674 million from $ 1.63 billion.
CEO Srini Pallia identified artificial intelligence (AI) as a long-term growth driver, although the company did not disclose how much revenue its AI business generated during the quarter.
IT services revenue stood at $2.61 billion for the quarter ended September 30, down 0.1% sequentially in reported terms. Revenue grew 0.6% year on year in constant currency, according to results released on October 15.
Total contract value (TCV) of bookings fell 22.9% sequentially in constant-currency terms to $2.60 billion from $3.37 billion in Q1 FY27.
The fall in bookings comes as Indian IT services firms contend with changing client spending patterns and pressure to demonstrate returns on AI investments.
The shift toward AI platforms and products is changing how clients allocate technology budgets, while productivity gains can pressure traditional billing models. These competing forces are shaping the economics of AI for Indian IT services firms.
Wipro’s operating margin rose to 16.5%, expanding 0.5 percentage points sequentially, although it remained 0.2 percentage points below the year-ago level. Net income fell 4.7% sequentially to $333.9 million and declined 1.9% year on year. Earnings per share increased 4.2% year on year to $0.03.
Operating cash flow rose 61.3% sequentially to $553.6 million, equivalent to 165.8% of net income.
Looking ahead, Wipro expects IT services revenue to range from $2.571 billion to $2.625 billion in the quarter ending December 31, translating to sequential growth of -1.5% to +0.5% in constant-currency terms.
“We see AI as a long-term growth driver that will expand the addressable market for technology and business transformation,” Pallia said.
The company also reported momentum in its AI-Native Unit and AI offerings portfolio but did not disclose a separate AI revenue figure, leaving its contribution to overall performance unclear.
Wipro ended September with 236,328 employees, down from 243,044 at the end of June. Net utilisation, excluding trainees, stood at 83.4%, compared with 83.6% in the previous quarter. Voluntary attrition over the trailing 12 months eased to 13.8% from 13.9%.
Offshore revenue accounted for 62.2% of IT services revenue, down from 62.4% in the previous quarter. Wipro added 33 customers during the quarter, taking its active customer count to 1,229.