As of December 18, 2025, Wipro Limited (NYSE: WIT; NSE: WIPRO) finds itself at one of the most critical junctures in its 80-year history. Once the undisputed third-largest player in the Indian IT services hierarchy, Wipro has spent the better part of the last five years grappling with leadership churn, cultural friction from high-profile acquisitions, and a growth rate that has consistently trailed its Tier-1 peers. However, the narrative in late 2025 is shifting. Under the stewardship of CEO Srini Pallia, who took the helm in April 2024, Wipro has emerged as a "turnaround story" fueled by a $1 billion investment in artificial intelligence and a leaner, consulting-led delivery model. While analysts remain divided on its near-term revenue trajectory, the company’s recent stock performance and record-breaking deal pipeline have forced investors to take a second look at this Bengaluru-based giant.

Historical Background

The Wipro story is a classic tale of industrial metamorphosis. Founded in 1945 by Mohamed Premji as Western India Vegetable Products Limited, the company began its life manufacturing sunflower oil and laundry soap. It wasn't until the late 1970s, under the visionary leadership of Azim Premji, that the company pivoted toward the nascent computer hardware and software industry following the exit of IBM from India.

By the 1990s, Wipro had transitioned into a global IT services powerhouse, becoming the first Indian company to receive the IEEE Software Process Award. The 2000s were marked by explosive growth as the "offshore model" became the global standard. However, the last decade proved more turbulent. While competitors like Infosys and Tata Consultancy Services (TCS) scaled with precision, Wipro’s strategy of "string-of-pearls" acquisitions led to integration challenges, culminating in the 2024 leadership change that saw long-term veteran Srini Pallia replace Thierry Delaporte.

Business Model

Wipro operates through three primary Global Business Lines (GBLs): Wipro FullStride Cloud, Wipro Enterprise Futuring, and Wipro Engineering Edge. Its revenue is diversified across several key sectors:

• Banking, Financial Services, and Insurance (BFSI): This remains the largest segment, significantly bolstered by the $1.45 billion acquisition of Capco, a global management and technology consultancy.
• Manufacturing and Consumer: A core pillar that includes high-end engineering services and supply chain transformation.
• Health and Life Sciences: Focusing on digital health platforms and regulatory compliance.
• Energy, Natural Resources, and Utilities: Where Wipro’s recent acquisition of Rizing has made it a dominant force in SAP-led transformations.

The company’s "consulting-led" model aims to engage clients at the boardroom level (through Capco) and then pull through large-scale downstream IT implementation and managed services.

Stock Performance Overview

The stock performance of Wipro has been a study in volatility.

• 1-Year Performance: In 2025, the stock has shown signs of a "bottoming out" rally, gaining approximately 12% as margin improvements began to outweigh revenue concerns.
• 5-Year Performance: Over a five-year horizon, Wipro has underperformed the Nifty IT index, largely due to a sluggish recovery post-pandemic compared to HCLTech and Infosys.
• 10-Year Performance: On a decade-long scale, Wipro remains a wealth creator, but its CAGR (Compound Annual Growth Rate) lags behind the industry leaders, reflecting its struggle to maintain consistent double-digit organic growth.

As of mid-December 2025, WIT trades on the NYSE near the $2.85 mark, reflecting a market that is cautiously optimistic but still demanding proof of top-line acceleration.

Financial Performance

Wipro’s financial results for the first half of FY26 (ending September 2025) suggest a stabilization of the ship.

• Revenue: Q2 FY26 revenue stood at approximately ₹227.0 billion ($2.56 billion), marking a return to sequential growth (+2.5% QoQ) after several quarters of stagnation.
• Margins: Operating margins have been a standout success, expanding to 17.5% through aggressive automation and a reduction in bench strength.
• Net Profit: For H1 FY26, net profit saw a healthy 10% YoY increase, driven by operational efficiencies rather than pure volume growth.
• Valuation: Trading at a forward P/E ratio of roughly 18x, Wipro remains at a discount to TCS and Infosys, which trade in the 24x–28x range, reflecting the "execution risk" still priced into the stock.

Leadership and Management

The "Pallia Era" is defined by a return to Wipro’s roots: internal stability and client-centricity. CEO Srini Pallia, a 30-year Wipro veteran, has focused on decentralizing decision-making and empowering regional heads.

• Srini Pallia (CEO): Recognized for his deep understanding of Wipro’s culture, he has successfully stemmed the tide of senior-level exits that plagued the previous administration.
• Anne-Marie Rowland (CEO of Capco): She has been instrumental in integrating consulting more tightly with Wipro’s AI units.
  The board remains under the chairmanship of Rishad Premji, whose focus on governance and ESG (Environmental, Social, and Governance) remains a cornerstone of the company’s reputation.

Products, Services, and Innovations

Innovation at Wipro in 2025 is synonymous with Wipro ai360. This $1 billion ecosystem integrates AI into every tool and platform.

• Lab45: This internal R&D hub has produced over 50 "Agentic AI" solutions that automate complex supply chain and customer service workflows.
• Wipro Intelligence: A platform launched in early 2025 that helps enterprises manage "AI sprawl"—the chaotic proliferation of unsanctioned AI tools within large organizations.
• TelcoAI360: A specialized platform launched at MWC 2025, which uses AI to optimize 5G network slicing and reduce energy consumption for global telecom giants.

Competitive Landscape

Wipro operates in a hyper-competitive "Big Five" environment in India, alongside TCS, Infosys, HCLTech, and Cognizant (CTSH).

• Weakness: Compared to HCLTech, Wipro lacks a massive proprietary software products business. Compared to Infosys, its organic growth has been slower.
• Strength: Wipro’s BFSI consulting capabilities, via Capco, are arguably superior to most Indian peers, allowing it to compete more directly with global firms like Accenture (ACN) and Deloitte.
• The Cognizant Threat: In 2025, a revitalized Cognizant has been aggressively poaching market share in the US, making the battle for discretionary spend even fiercer.

Industry and Market Trends

The IT services sector in 2025 is dominated by the "GenAI Maturity Curve." Clients have moved past the experimentation phase and are now demanding "value-realization."

• Cloud 2.0: Most enterprises have moved to the cloud; the current trend is "FinOps"—optimizing those cloud costs, which favors Wipro’s FullStride Cloud unit.
• Global Capability Centers (GCCs): More Western firms are setting up their own captive units in India. Wipro has adapted by offering "GCC-as-a-Service," helping clients set up and manage these centers.

Risks and Challenges

• The "H-1B" Headwind: In late 2025, proposed $100,000 fee hikes for US work visas pose a significant threat to margins, potentially costing Wipro hundreds of millions annually.
• Discretionary Spending: While large deals are being signed, "short-cycle" discretionary projects remain scarce as high interest rates continue to weigh on US corporate budgets.
• Cultural Integration: While Capco is performing well, the legacy of "siloed" business units at Wipro still occasionally hinders cross-selling.

Opportunities and Catalysts

• The SAP 2027 Deadline: With SAP ending support for legacy ECC systems in 2027, Wipro’s Rizing unit is seeing a surge in high-margin migration work.
• M&A Potential: With a strong cash balance of over $4 billion, Wipro is well-positioned for another tactical acquisition, potentially in the cybersecurity or European specialized consulting space.
• Agentic AI: Wipro’s early lead in "AI Agents" that can perform autonomous tasks (rather than just generating text) is a significant differentiator.

Investor Sentiment and Analyst Coverage

The analyst community remains "cautiously bearish."

• Goldman Sachs and JP Morgan maintain "Sell" and "Underweight" ratings respectively, citing Wipro’s slower-than-average revenue recovery.
• Domestic Indian Brokerages are more optimistic, with several upgrading Wipro to "Hold" or "Accumulate" based on the massive $4.97 billion TCV (Total Contract Value) reported in recent quarters.
• Institutional Sentiment: Large Indian insurance companies and mutual funds have increased their stakes, betting on a long-term cyclical recovery.

Regulatory, Policy, and Geopolitical Factors

• EU AI Act: Enforced in 2025, this has forced Wipro to overhaul its AI delivery frameworks for European clients to ensure "high-risk" AI transparency and copyright compliance.
• India’s DPDP Act: The 2025 implementation of the Digital Personal Data Protection Act has created a new revenue stream for Wipro’s cybersecurity and compliance business, as Indian firms scramble to meet strict data localization and consent rules.
• Geopolitics: Tensions in the Middle East and Eastern Europe continue to create "digital sovereignty" demands, where countries want their data and infrastructure managed locally—a trend Wipro is capitalizing on through its regional delivery centers.

Conclusion

Wipro in late 2025 is a company that has successfully stabilized its foundation but has yet to fully ignite its engines. The leadership of Srini Pallia has brought a much-needed sense of calm and strategic focus. With industry-leading margins and a robust pipeline of AI-centric deals, the "Wipro of old" is slowly being replaced by a more agile, consulting-led competitor.

For investors, the central question is one of timing. While the stock trades at a discount to its peers, the path to a full re-rating requires Wipro to translate its record deal wins into consistent quarterly revenue growth. Those with a high risk tolerance and a long-term horizon may see a classic "value play" in the making, but for the risk-averse, the wait for a clear "Buy" signal continues.

This content is intended for informational purposes only and is not financial advice.