The American Depository Receipts of Wipro Ltd. slipped after the company released its first quarter earnings report for the financial year 2027 on Thursday.
Wipro ADRs traded 0.28% lower at $1.83 as of 9:55 a.m. EST. Earlier in the day, the Indian IT giant posted a sequential 4.3% decline in its consolidated bottom-line for the quarter under review, while revenue only went up marginally.
The profit decline was slightly higher than street expectations. Analysts' on Bloomberg expected Wipro's profit to come in at 3,466 crore, 1% lower than the previous quarter.
Further, the management has forecasted an up to 1.5% degrowth in its IT services revenue. For the second quarter of FY27, Wipro expects revenue from its IT Services business to be in the range of $2.57 billion to $2.63 billion. The company has guided for IT services growth of -1.5% to +0.5% on a sequential basis.
Earnings before interest and taxes declined 8.4% to Rs 3,829 crore from Rs 4,181 crore and margin narrowed 160 basis points to 15.6% from 17.2%.
On the operational front, Wipro's total bookings declined 2.4% quarter-on-quarter in constant currency to $3.37 billion. IT services revenue fell 1.4% sequentially to $2.62 billion, while the IT services operating margin stood at 16% in the first quarter.
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The company's trailing 12-month attrition stood at 13.9% at the end of the quarter and total headcount stood at 2.43 Lakh In Q1. Wipro CEO and Managing Director Srini Pallia said AI disruption is expanding the addressable market rather than shrinking it, while adding that the company's deal pipeline remains healthy.
He said the technology and communications vertical continued to show momentum, with the BFSI segment also expected to gather pace in the second quarter. However, the energy and manufacturing verticals remained soft.
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