“There are some difficulties concerning deal conversions into revenue,” Premji remarked during an interview with CNBC-TV18 at Davos. He mentioned that Wipro’s latest quarter performance aligned with the midpoint of guidance and showcased “excellent progress in margin expansion,” even though the forward outlook was “arguably a bit soft compared to market expectations.”
He anticipates that successfully converting deals will lead to increased revenue potential.
“Once that revenue, once those order bookings translate into revenue, the situation will appear different,” he stated, emphasizing a robust pipeline in transformation, cost, and AI.
Navigating a challenging growth phase
Premji pointed out that the recent quarter’s performance fell within the guidance range, showcasing “excellent margin expansion,” although the forward guidance was “arguably a bit soft compared to market expectations.”
It is noteworthy that the IT giant’s quarterly revenue reached $2.63 billion, reflecting a 1.2% increase quarter-over-quarter in constant currency, aligning closely with its guided range of –0.5% to +1.5%, but below the 1.6% forecast.
Margins increased by approximately 100 basis points to 17.6% quarter-over-quarter, exceeding poll forecasts, supported by reconciled items and stronger EBIT at ₹4,118 crore.
Read More: Wipro Q3 Results: Fourth quarter revenue growth forecasted between 0% to 2%; Deal wins at $871 million
Delays in deal conversions continue to be the primary obstacle to growth. “Customers are simply postponing the ramp-up… once that delay resolves, you’ll start to see changes,” he remarked.
Key factors in the order pipeline include transformation, cost optimization, and AI. Order bookings have risen by 25% year-on-year, with large deal bookings surging by 75% year-to-date. Vendor consolidation is prevalent in the environment, but Wipro is securing its “fair share.”
Premji acknowledged that the immediate future may be “a little bumpy,” yet he remains confident that once deal conversions begin, a revenue boost should follow.
Transforming ideas into actual AI results
Premji described AI as a utility, emphasizing that its value lies in how it can be implemented. “The current challenge is understanding context, domains, and workflows,” he stated.
He added that Wipro has restructured its delivery around two platforms—Wings for managing and operating customer work, and Vega for developing software, models, products, and agents.
All customer engagements are now conducted on one of these platforms. The company is also developing industry-specific platforms in finance, healthcare, and aviation.
This approach is intentionally consulting-led. He noted that the Capco acquisition has strengthened their financial services expertise, and Wipro is enhancing its domain knowledge in energy and heavy industries to make horizontal AI technology applicable in large organizations.
Stating that AI fluency is central to Wipro’s execution plan, he reported that 100% of employees are trained in basic AI skills, 95,000 in advanced skills, 80,000 achieving mastery, and 1,000 specifically focused on building AI platforms. Premji anticipates that 2026 will mark a transition from pilot initiatives to production implementations at client sites.
(Edited by : Ajay Vaishnav)
First Published: Jan 21, 2026 10:19 PM IST
