Indian IT giant Wipro has cautioned that increasing global trade barriers and tightening immigration regulations pose significant risks to its business growth. The Bengaluru-based company highlighted these concerns in its annual report for the fiscal year 2024-25, emphasizing the impact of escalating tariffs and trade policies in major economies and potential changes in U.S. immigration laws, which is Wipro’s largest revenue market.

Wipro generates over 62% of its revenue from U.S. clients and about 27% from Europe, making it vulnerable to economic instability and policy shifts in these regions. The company noted that volatility in the Americas, including the U.S., or Europe, and deteriorating global financial conditions could reduce the attractiveness of its service pricing.

Despite reporting a robust 18.9% increase in net profit to ₹13,135.4 crore for FY25, Wipro anticipates revenue pressure in the near term. For the first quarter of FY26, the company projects a sequential revenue decline of 1.5% to 3.5% in constant currency terms.

The report warns that heightened protectionism, ongoing trade wars, and rising tariffs may reduce global trade volumes and negatively affect client spending on technology services. Extreme protectionism and tariffs could weaken both global trade and economic activity, potentially slowing down Wipro’s growth prospects.

Immigration policy changes, particularly in the U.S. and other countries where Wipro operates, also present significant challenges. The company expressed concerns that restrictive immigration laws might limit outsourcing opportunities, hinder growth, and reduce revenue. To mitigate these risks, Wipro has focused on maintaining a robust pipeline of employees with valid non-immigrant visas and increasing local hiring in the U.S.

Wipro currently employs over 2.33 lakh people worldwide, underscoring its global scale and the importance of talent mobility for its operations.

Regarding financial performance, for the quarter ended March 31, 2025 (Q4 FY25), Wipro reported a consolidated net profit of ₹3,569.6 crore, marking a 25.9% year-on-year increase from ₹2,834.6 crore in the same quarter of the previous year. Revenue from operations increased by 1.3% to ₹22,504.2 crore compared to ₹22,208.3 crore in Q4 FY24, reflecting steady business growth despite global uncertainties.

In summary, while Wipro demonstrated strong financial results and growth in FY25, it remains cautious about the near-term outlook due to external risks such as trade protectionism, tariff hikes, and tightening immigration norms. These challenges could impact its revenue and growth trajectory, particularly given its significant exposure to the U.S. and European markets. The company’s strategy to counter these risks includes enhancing local hiring and securing visa pipelines to maintain operational flexibility and talent availability. Wipro’s continued focus on navigating geopolitical and regulatory challenges will be critical in sustaining its growth momentum in the evolving global market landscape.