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HomeNewsBusinessMacroeconomic uncertainties dramatically increased from FY25 to FY26: Wipro

Macroeconomic uncertainties dramatically increased from FY25 to FY26: Wipro

Wipro's revenue growth declined for the second consecutive fiscal by 2.3% in CC terms YoY for the financial year 2024-25.

April 16, 2025 / 20:28 IST
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Wipro on Wednesday said that uncertainties in the IT sector have dramatically increased from FY25 to FY26, majorly due to tariffs announced by Donald Trump.

“I don't have a crystal ball that tells me how it (macroeconomic issues) goes… going from context of FY25-26, the uncertainties have dramatically increased,” Chief Executive Officer Srinivas Pallia said while addressing a press conference after declaring the Q4FY25 results.

Investor concerns have increased over a potential economic slowdown after US President Donald Trump refrained from ruling out a recession amid the implementation of trade tariffs.

Additionally, the IT major's weak set of numbers spooked investors in the US, with the American Depository Receipts plunging over 3 percent in pre-market.

Pallia further added that the huge trade between Europe and the US, coupled with the impact on European clients because of tariffs against China, will have an adverse impact going forward. “With that in context, we have looked at all the uncertainties… clients, and based on that we have given our guidance.”

Consequently, the services major forecasts a weak sequential revenue decline of 1.5 to 3.5% in constant currency terms for Q1FY26. Additionally, revenue growth declined for the second consecutive fiscal by 2.3 percent in constant currency (CC) terms year-on-year for the financial year 2024-25.

This comes at a time when the company is undergoing a business overhaul under the new management amid macroeconomic headwinds.

In FY24, Wipro’s CC revenue growth had decreased by 4.4 percent year-on-year.

Even industry leader Tata Consultancy Services (TCS) had outlined how tariff-related issues hit the company in Q4FY25.

Chief Financial Officer Aparna C Iyer added that the company is facing client issues in the BFSI vertical in Europe. “We are going through some client-specific issues in BFSI in Europe, which is impacting our overall BFSI growth rate. If you actually look at just Capco and even America, they've done really well in FY25,” Iyer said.

She added that the company is faced with headwinds, and an uncertain macroeconomic environment is putting downward pressure on revenues. "That said, our endeavor will be to maintain the margins in the narrow band in the coming quarters."

Moreover, Wipro expects clients to take a more measured approach going forward, given the uncertainty in the environment, especially on two spend areas: large transformation programs and discretionary spend.

Meanwhile, Wipro's revenue declined by 1.2 percent QoQ and a 2.3 percent YoY to $2.60 billion in Q4FY25. In constant currency terms, the segment revenue slipped 0.8 percent sequentially, missing analyst estimates.

Reshab Shaw Covers IT and AI
first published: Apr 16, 2025 08:23 pm

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