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Wipro Flags Tariff Turbulence and Demand Stagnation as FY26 Begins Cautiously

Updated: July 16, 2025 10:36

Image Source : Mint
Muted Demand, Rising Uncertainty
Wipro has issued a cautious outlook for Q1 FY26, citing persistent macroeconomic headwinds. While demand hasn’t worsened, executives noted it hasn’t improved either, leaving clients hesitant to commit to largescale tech investments.
 
Key highlights:
  • Tariff escalations and trade policy shifts in the US and Europe are impacting client confidence
  • Discretionary spending remains subdued, especially in manufacturing and consumer sectors
  • A major transformation project was paused midstream due to tariffrelated uncertainty
  • Wipro expects a sequential revenue decline of 1.5% to 3.5% in constant currency terms
  • Immigration policy changes in key markets could affect staffing and delivery timelines
  • Despite strong deal pipelines, clients are adopting a waitandwatch approach
Strategic Response
Wipro is focusing on AIled cost optimization and local hiring to mitigate risks. Executives remain hopeful for a demand revival in H2, but acknowledge that visibility remains limited.
 
Sources: Business Standard, Financial Express, Devdiscourse, Diginomica.

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