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Wipro Lags Rivals as Deal Wins Slide and Q4 Outlook Disappoints

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Wipro, India’s fourth-largest IT services provider, delivered a weaker-than-expected outlook for the current quarter on Friday after reporting its lowest deal bookings in six quarters, underscoring its struggle to keep pace with larger rivals amid uneven demand.

The Bengaluru-based firm said it expects revenue growth in the fourth quarter to range from flat to 2% sequentially, including contributions from acquisitions. That fell short of market expectations, with Kotak Institutional Equities forecasting growth of 1.5% to 3.5%. Following the announcement, Wipro’s U.S.-listed shares dropped as much as 7.2%.

The subdued guidance contrasted with stronger performances from bigger competitors such as Tata Consultancy Services and Infosys, both of which reported steadier deal wins and better-than-expected revenue in the seasonally weak third quarter.

“Wipro’s revenue growth was broadly in line with estimates, but deal wins were slightly below average. More importantly, its guidance is below street expectations,” said Anmol Garg, an analyst at DAM Capital.

Wipro reported total deal bookings of $3.34 billion for the December quarter, its weakest showing in six quarters, down from $4.69 billion in the previous quarter and $3.5 billion a year earlier. Consolidated revenue rose 5.54% year-on-year to 235.56 billion rupees ($2.59 billion), beating analysts’ average estimate of 233.91 billion rupees, according to LSEG data.

Net profit, however, fell 7% to 31.19 billion rupees, missing market expectations. The quarter included a one-time charge of 3 billion rupees linked to India’s new labour codes, adding pressure to earnings.

Analysts said margins remain under strain as Wipro continues to invest heavily in AI-driven delivery models while absorbing higher compliance costs and rising wages. “Wipro is prioritising long-term capability building, even as demand remains uneven,” said Gaurav Parab, an analyst at NelsonHall.

SECTOR SIGNALS TURN MIXED
The broader outlook for India’s $283 billion IT sector is showing tentative improvement. Smaller rival Tech Mahindra beat third-quarter revenue estimates on Friday, supported by stronger demand from communications clients.

After cutting back discretionary spending amid tariff-related uncertainty, clients are gradually increasing investment in AI-led projects. Wipro Chief Executive Srini Pallia said there is “a very clear shift towards AI-led transformation,” though the benefits have yet to fully translate into stronger deal momentum for the company.

Tech Mahindra struck a more optimistic tone. Chief Executive Mohit Joshi said the company expects to outperform peers in revenue growth next fiscal year, citing stabilising client spending in the United States and signs that Europe could move from stability into a growth phase.

For now, Wipro’s softer deal pipeline and cautious near-term guidance highlight the uneven recovery across India’s IT services landscape, even as AI-driven demand begins to re-emerge.

Taiwan Seeks Strategic AI Partnership With U.S. After Tariff Deal

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Taiwan aims to position itself as a close strategic partner of the United States in artificial intelligence following a trade deal that cuts tariffs and encourages large-scale Taiwanese investment in the U.S., Vice Premier Cheng Li-chiun said on Friday.

Speaking at a press conference in Washington, Cheng said the negotiations promoted two-way high-tech investment and laid the groundwork for deeper cooperation in AI. The talks come as the administration of U.S. President Donald Trump presses major semiconductor producers to expand manufacturing in the United States, particularly for chips that power AI systems.

Cheng led the negotiations that resulted in Thursday’s agreement, which reduces tariffs on many Taiwanese exports and channels new investment into the U.S. technology sector. While the deal strengthens Taiwan–U.S. ties, it risks angering China, which claims democratically governed Taiwan as its territory—claims Taipei firmly rejects.

U.S. Commerce Secretary Howard Lutnick said Taiwanese companies would invest about $250 billion in the United States across semiconductors, energy and AI. That figure includes $100 billion already committed in 2025 by TSMC, the world’s leading producer of advanced AI chips, with additional investment expected. Taiwan will also guarantee another $250 billion in credit to support further projects, according to the Trump administration.

Cheng described the agreement as “win-win,” saying it would also attract more U.S. investment into Taiwan. She stressed that the expansion is company-led rather than government-directed and does not mean abandoning domestic production. “This is not about ‘moving’ but about ‘building,’” she said, calling the U.S. expansion an extension of Taiwan’s technology ecosystem.

Taiwan Economy Minister Kung Ming-hsin said investments would also cover AI servers and energy infrastructure, though companies would disclose chip-related figures themselves. Taiwan’s benchmark stock index closed at a record high on Friday, buoyed by strong TSMC earnings and investor optimism over the deal.

Chang Chien-yi, president of the Taiwan Institute of Economic Research, said the agreement underscores Washington’s view of Taiwan as a key strategic partner in semiconductors, noting it was the first country to receive preferential treatment for chips and related products.

In a statement, TSMC welcomed the prospect of robust U.S.–Taiwan trade ties, reiterating that its investment decisions are driven by market demand. The deal must still be ratified by Taiwan’s parliament, where opposition lawmakers have raised concerns about the risk of hollowing out the island’s critical chip industry.

Lutnick said the objective was to bring 40% of Taiwan’s chip supply chain to the United States, warning that production not built on U.S. soil could face tariffs of up to 100%. Kung said Taiwan estimates that by 2036 the production split for advanced chips would be closer to 80% in Taiwan and 20% in the United States.

Taiwan Vice President Hsiao Bi-khim said the agreement demonstrated Taiwan’s importance in global trade. “Taiwan may not be large in area, but we are agile and innovative—and an indispensable force in the global supply chain,” she said.

Former Trump Adviser Dina Powell McCormick Appointed Meta President and Vice Chairman

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Meta Platforms on Monday named former Trump administration official Dina Powell McCormick as its president and vice chairman, a move widely seen as strengthening the company’s lobbying and political ties in Washington.

U.S. President Donald Trump congratulated Powell McCormick shortly after the announcement in a post on Truth Social, calling her “fantastic” and praising her service in his administration with “strength and distinction.”

Her appointment comes amid a broader strategic realignment at Meta that has brought the company closer to Trump and Republican leadership. Chief Executive Mark Zuckerberg has been seeking political backing for Meta’s expanding investments in frontier artificial intelligence and so-called personal superintelligence, including plans to build massive data centers and secure long-term energy capacity. Ahead of Trump’s second inauguration, Zuckerberg visited him at his Mar-a-Lago resort in Florida.

Over the past year, Meta has taken several steps that have appealed to Trump, including scrapping its U.S. fact-checking program, promoting Republican executive Joel Kaplan to chief global affairs officer, ending diversity programs, and hiring former Trump trade adviser C.J. Mahoney to lead its legal team. Meta declined to say whether Powell McCormick’s appointment was intended to curry favor with Trump.

Dina Powell McCormick Joins Meta as President and Vice Chairman

According to the company, Powell McCormick will focus on expanding Meta’s data center footprint, building new strategic capital partnerships, and increasing the firm’s long-term investment capacity—areas critical to its AI ambitions. Meta has committed up to $72 billion in capital spending for 2025 as it works to regain momentum in Silicon Valley’s AI race after a muted reception to its Llama 4 model.

Powell McCormick brings extensive experience in both finance and government. She spent 16 years in senior leadership roles at Goldman Sachs, served as deputy national security adviser during Trump’s first term, and previously held a senior White House advisory role under former President George W. Bush. She is married to David McCormick, a Republican senator from Pennsylvania who chairs a Senate subcommittee overseeing energy policy—an area relevant to Meta’s data center expansion.

A spokesperson for Senator McCormick said he will continue to comply with all Senate ethics rules. However, critics raised concerns about potential conflicts of interest. Sacha Haworth, executive director of the Tech Oversight Project, said the senator should recuse himself from any votes or committee actions involving Meta’s business.

Powell McCormick’s new role echoes the influence once wielded by former Chief Operating Officer Sheryl Sandberg, who used deep ties to Washington and the Democratic Party to help Meta navigate regulatory scrutiny. Notably, Powell McCormick had resigned from Meta’s board in December, just eight months after joining, before being elevated to her new executive position.