Wipro saw a reduction in its annual revenue from Meta as the social media giant ended its digital marketing outsourcing contract, cutting Wipro's revenue from about $100 million to $75 million in fiscal year 2026, according to livemint.com. The IT services company reported a slight 0.3% year-on-year revenue decline to $10.5 billion in FY26 and expects Q2 FY27 revenue to trend toward the lower end of its guidance range.
Meta’s decision to trim its outsourcing engagement with Wipro reflects a broader industry shift driven by artificial intelligence adoption. The move away from traditional IT outsourcing for digital marketing is part of Meta’s internal overhaul to integrate AI capabilities directly, reducing reliance on external vendors. This change has impacted Wipro’s position, as Meta was among its top 20 clients, generating significant revenue from this segment.
The reduction in Meta’s outsourcing contract highlights the disruptive impact of AI on the IT services sector, where automation and AI-driven solutions are reshaping client relationships and service models. This trend aligns with concerns raised by other industry leaders, such as Zoho’s Sridhar Vembu, who noted that AI investments and data center infrastructure are slowing traditional IT hiring and transforming job structures across the sector.
Wipro’s revenue guidance for Q2 FY27 anticipates a decline toward the lower end of a -1.5% to 0.5% range, reflecting the ongoing challenges posed by AI-driven changes in client engagements. The company’s FY26 revenue stood at $10.5 billion, underscoring the scale of its operations amid evolving market dynamics.