Wipro, India's fourth-largest software company, has reported better-than-expected revenue for the second quarter, driven by a resurgence in spending from its U.S. clients in the communications sector. Despite a 1% decline in consolidated revenue to 223.02 billion rupees ($2.65 billion) for the July-September quarter, the figure surpassed analysts' average estimate of 222.58 billion rupees, according to LSEG data. This performance highlights Wipro's resilience in a challenging market environment.

In addition to revenue, Wipro's net profit saw a significant increase. The company reported a 6.2% sequential rise in net profit to Rs 3,227 crore, exceeding the consensus estimate of Rs 3,009 crore. This growth was achieved despite a marginal decline in revenue from operations compared to the previous year, which stood at Rs 22,301.6 crore, slightly down from Rs 22,515.9 crore. Analysts had anticipated revenue to be around Rs 22,250 crore with a net profit of Rs 3,000 crore.

Wipro's performance is part of a broader trend among Indian IT companies, with peers like Infosys, HCLTech, and TCS also reporting strong quarterly results. Infosys, for instance, posted a net profit of ₹6,506 crore, marking a 4.7% year-on-year increase, while HCLTech reported a 10.5% jump in net profit to ₹4,235 crore.

Despite the positive financial results, Wipro's share price fell by 0.64% to close at ₹528.75 on Thursday, reflecting broader market trends as the benchmark Sensex also ended the day lower. The company's outlook remains cautiously optimistic, with expectations for IT Services revenue to range between $2,607 million and $2,660 million, translating to a sequential guidance of -2.0% to 0.0% in constant currency terms.