Wipro's AI-Led Turnaround Faces Execution Delays Despite Strong Deal Momentum
Wipro's AI-led transformation faces near-term execution challenges despite strong deal momentum, with Executive Chairman Rishad Premji acknowledging a "bumpy" road ahead due to client ramp-up delays. The company achieved 25% YoY growth in order bookings and 75% increase in large deal order book year-to-date, while meeting midpoint guidance with margin expansion. Wipro has consolidated AI efforts under its Wipro Intelligence platform, focusing on consulting-led approaches with deep domain expertise in key sectors including banking, financial services, energy, and consumer markets.
*this image is generated using AI for illustrative purposes only.
Wipro 's much-anticipated turnaround continues to face execution challenges despite strong deal momentum and order book growth. Executive Chairman Rishad Premji acknowledged at the World Economic Forum 2026 in Davos that the road ahead remains "bumpy" as clients delay revenue ramp-ups despite signing new contracts.
Performance Highlights and Challenges
Speaking to CNBC-TV18, Premji outlined the company's mixed performance, noting that while Wipro met the midpoint of its guidance with strong margin expansion, forward guidance remained softer than market expectations. The primary challenge lies not in demand generation but in converting signed deals into revenue streams.
| Performance Metric: | Growth Rate |
|---|---|
| Order Bookings: | +25% YoY |
| Large Deal Order Book (YTD): | +75% |
| Guidance Achievement: | Midpoint met |
| Margin Performance: | Expansion achieved |
"I think this is a little bit about challenges around deals converting into revenue," Premji explained. "We've had a decent quarter. We were at the midpoint of our guidance, did a great job on margin expansion, but we've guided a little soft compared to what the market was expecting."
Market Dynamics and Client Behavior
The current slowdown stems primarily from customers postponing project scale-up timelines rather than canceling initiatives entirely. Premji emphasized that cost pressures continue across markets, with clients focusing on cost consolidation and vendor consolidation while pursuing transformation projects.
"There's always demand, but there's also pressure on cost," he noted. "The tipping point is when customers stop delaying the ramp-up. Once that delay unfolds, you'll start to see it."
Despite these challenges, Premji highlighted that the same cost pressures creating headwinds are also generating opportunities for vendors capable of delivering scale and efficiency. Wipro has secured its "fair share" of vendor consolidation deals, helping offset discretionary spending slowdowns.
AI Strategy and Wipro Intelligence Platform
Artificial intelligence remains central to Wipro's long-term transformation strategy. The company has consolidated its AI efforts under Wipro Intelligence, a unified suite built around three core pillars designed to address real organizational challenges rather than experimental use cases.
| Platform Component: | Function |
|---|---|
| Industry Platforms: | Sector-specific solutions (Payer AI for healthcare, Top Synchrome for airlines) |
| Delivery Platforms (Wings): | Operations management for client work |
| Build Platforms (Vega): | Software, models, and AI agent development |
"The utility of technology is its implementability inside organisations," Premji emphasized. "How do organisations scale it and make it real inside them—that's where the opportunity is."
Every AI engagement at Wipro now anchors on one of these platforms, aimed at either improving delivery efficiency or enabling domain-specific client transformation. The approach focuses on deploying use cases deeply embedded in organizational data, workflows, and domain context.
Consulting-Led Approach and Domain Expertise
Wipro's AI strategy emphasizes a consulting-led approach, strengthened through strategic acquisitions including Capco. This focus on deep domain expertise, particularly in banking and financial services, energy, utilities, and consumer sectors, aims to make AI implementations more relevant and effective for clients.
"The whole journey is about leading an AI-led story that's very consulting-led," Premji explained. "Horizontal technology only creates value when it's applied with context and domain understanding."
The company continues to build capabilities in industries where it serves customers deeply and understands their processes comprehensively. This includes potential expansion through mergers and acquisitions in sectors where Wipro can demonstrate clear contextual value.
Outlook and Strategic Direction
Wipro's leadership maintains confidence in the company's strategic direction while acknowledging timing uncertainties. The active deal pipeline spans three key areas: transformation, cost optimization, and artificial intelligence, though execution timelines remain uneven across these segments.
"Once those delays in ramp-up start to ease, you will see the upside," Premji stated. "It may be a bit bumpy at times, but I'm hopeful."
For investors, the message emphasizes patience as the company works through near-term execution challenges while building foundational capabilities for long-term growth. The combination of strong order book growth and comprehensive AI platform development positions Wipro for future revenue conversion once client ramp-up delays subside.
Historical Stock Returns for Wipro
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.15% | -9.33% | -9.42% | -10.26% | -20.22% | +7.67% |
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