India's IT bellwethers, Tata Consultancy Services (TCS) and Wipro, delivered insightful signals in their fourth quarter results, reflecting how scale, demand recovery, and emerging technologies are reshaping the sector.
However, tariffs and the ongoing Iran war have left their impact on the sector. Here's how the giants have performed in the last quarter.
Dollar Revenue
In terms of dollar revenue, TCS reported a first-ever decline on full-year basis. Fiscal year 2026 revenue fell 0.5% year-on-year to $30,017 million and dropped 2.4% in constant currency terms. Wipro, in comparison, saw a 0.3% decline in IT services revenue to $10,478.1 million, even as its gross revenue (in rupee terms) rose 4% to Rs 92,620 crore, indicating relatively better stability.
Revenue
In reported revenue terms, Wipro posted Rs 24,236 crore in Q4, up 3% sequentially, broadly in line with expectations, while also delivering a strong bottom-line performance with net profit at Rs 3,501 crore. TCS' revenue rose 5.4% quarter-on-quarter to Rs 70,698 crore from Rs 67,087 crore, comfortably beating analyst estimates. In constant currency terms, revenue grew 1.2% sequentially, indicating stable underlying demand despite macro uncertainty.
ALSO READ: TCS Q4 Results: Profit Soars 29%; Revenue Beats Estimates
EBIT
Wipro stood out with a 19.7% sequential jump in earnings before interest and taxes to Rs 4,181 crore, with margins expanding significantly to 17.3% from 14.8%. TCS, on the other hand posted 6% rise in EBIT to Rs 17,870 crore from Rs 16,889 crore in Q3 FY26. EBIT margin stood at 25.3%, compared to 25.2% in the third quarter.
AI Commentary
On AI commentary, TCS clearly leads the narrative. Its Q4 performance was marked by strong traction in AI-led services, with annualised AI revenue crossing $2.3 billion. The company also deepened partnerships with global technology leaders such as OpenAI, Nvidia, and Cisco, signalling aggressive positioning in next-gen technologies.
Wipro, while also pivoting toward AI, highlighted its shift to a “services-as-software” model through its AI Native Business & Platforms unit, alongside strategic deals such as the one with Olam Group.
Employee Additions
In terms of employee additions, TCS added over 2,000 employees sequentially in Q4, taking its total headcount to 5,84,519. However, on a yearly basis, it reduced workforce due to restructuring, even as attrition ticked up slightly to 13.7%. Wipro, on the other hand, hired over 3,000 freshers in Q4 and about 7,500 during FY26, but flagged a cautious stance ahead, with no hiring guidance for FY27 amid volatile demand.
Outlook
The outlook further highlights the contrast. Wipro guided for IT services revenue in the range of $2,597 million to $2,651 million for the next quarter, implying a -2% to 0% sequential growth band in constant currency, reflecting continued uncertainty. TCS refrained from giving a tight numerical guidance but pointed to sustained demand recovery, especially in segments like Energy, Resources and Utilities, which grew 6.1% sequentially.
Deal Pipelines
When it comes to deal pipelines, TCS remains far ahead in scale. It reported a Q4 total contract value (TCV) of $12 billion, taking FY26 TCV to $40.7 billion, including three mega deals. Wipro reported bookings of $3,455 million, up 3.2% sequentially, with large deals at $1,440 million, steady but significantly smaller in comparison.
Dividend Vs Buyback
On the capital allocation front, both companies rewarded shareholders but with different approaches. Wipro announced a Rs 15,000 crore buyback, slightly lower than its 2023 buyback, alongside a final dividend of Rs 11 per share. TCS maintained its dividend-heavy strategy, proposing a final dividend of Rs 31 per share and delivering a total shareholder payout of Rs 39,571 crore for FY26.
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