Wipro (WIPR.NS), India’s fourth-largest IT services provider, reported a stronger-than-expected performance for the June quarter, driven by increased client spending in its Americas business. The company also issued a revenue forecast for the current quarter that aligns with market expectations, signaling a potential easing of economic uncertainties. This positive outlook lifted Wipro’s U.S.-listed shares by 1.4% in pre-market trading.

Revenue Forecast Signals Stability

Wipro projects its September quarter revenue to range between $2.56 billion and $2.61 billion, indicating a potential fluctuation of -1% to +1%. This forecast meets analyst expectations and suggests a stabilizing demand environment. “The guidance reflects a reduction in uncertainty, which is encouraging for Wipro, especially given its cautious growth in a challenging economic climate,” said Sushovon Nayak, IT analyst at Anand Rathi.

Strong Q1 Results

For the June quarter, Wipro’s revenue grew by 0.8% to 221.35 billion rupees ($2.57 billion), surpassing the average analyst estimate of 220.59 billion rupees, according to LSEG data. Net profit also outperformed expectations, rising 11% to 33.3 billion rupees against a projected 32.55 billion rupees. This marks a notable improvement for Wipro, particularly when compared to larger competitors like Tata Consultancy Services (TCS.NS) and HCLTech (HCLT.NS), which reported misses in quarterly revenue due to persistent demand softness.

Mixed Performance Across Regions and Sectors

Despite the overall positive results, Wipro faced challenges in certain areas. Europe saw a significant revenue drop of 8.1%, reflecting ongoing regional headwinds. Additionally, three of Wipro’s five business segments experienced revenue declines. However, the company reported robust deal momentum, with bookings soaring to $5 billion, up from $3.3 billion in the same quarter last year, particularly in the Americas.

Navigating a Challenging IT Landscape

India’s $283-billion IT industry has been grappling with cautious client spending, partly due to uncertainties surrounding U.S. tariff policies under a potential Trump presidency. Wipro’s CEO, Srini Pallia, acknowledged the “significant macro uncertainty” at the quarter’s start but highlighted the company’s ability to secure strong deal wins as a positive sign. While competitors noted a stabilization in demand without further deterioration, Wipro’s results suggest it is carving a path toward recovery.

With a solid Q1 performance and an optimistic revenue outlook, Wipro is positioning itself to navigate the complexities of the global IT market while capitalizing on renewed client confidence in key regions.