Shares shifted sharply lower on Thursday as Wipro's stock fell 7.6% to $1.89 in pre-market trading, erasing a rally that had briefly lifted the stock to $2.05 on Monday. The retreat reveals just how fragile investor confidence is in a company caught between two forces: a broad software-sector lift that temporarily masked bad news, and a deepening structural threat from clients using artificial intelligence to bring work back in-house.
Meta Is Pulling Work In-House — and Wipro Isn't the Only One Losing Out. Meta cut $25 million a year from its outsourcing deal with Wipro after shutting down its digital marketing arm to focus more on AI.
Wipro now gets $75 million annually from Meta, down from $100 million. The cut isn't isolated: Concentrix, Teleperformance, and Accenture also experienced reductions after Meta scaled back outsourced digital marketing work.
Mark Zuckerberg said in April that Meta wants stronger internal tech and AI, so it's relying less on outside help. For shareholders, this signals a client philosophy change — not a one-time budget trim.
This Is the Second Major Client Loss in Six Months. Wipro has also lost up to $100 million in annual revenue after Estée Lauder shifted work to Accenture. Combined with the Meta reduction, that's roughly $125 million in annual revenue at risk — about 1.2% of the firm's $10.5 billion in total revenue, which was already down 0.3% year on year. The losses compound at a moment when Wipro can least afford them.
The Growth Outlook Was Already Weak Before These Blows Landed. For the current quarter ending September, Wipro guided revenue of $2.574 billion to $2.627 billion, translating to sequential growth of -1.5% to +0.5%.
Operating margin was 16%, down 1.2% year-on-year, impacted by salary increases, deal ramp-ups, and AI investments.
Wipro trades at roughly 13 times estimated fiscal 2028 earnings — a steep discount to the domestic IT peer median of about 21 times — reflecting concerns about an earnings growth rate of just 3.4% annually.
AI Is Quietly Rewriting the Outsourcing Business Model. The development highlights a broader shift as companies increasingly use artificial intelligence to redesign business processes and reassess external service contracts.
At least 200 Wipro employees on Meta projects now await reassignment. The risk for investors is structural: every major tech client building internal AI capabilities is a potential contract that shrinks — or vanishes.