Wipro Ltd.'s financial performance for the fourth quarter of financial year 2026 may have been in-line with street expectations, as the IT giant clocked an over 12% growth in its net profit.
However, the IT major stands on shaky ground concerning its revenue from IT services and projects a degrowth of up to -2% in constant currency.
Constant currency refers to a fixed exchange rate that excludes fluctuations when calculating financial performance figures.
The company projects that revenue from IT services will come in at a range of $2,597 million to $2,651 million, translating into a sequential guidance of -2.0% to 0%.
"We expect revenue from our IT Services business segment to be in the range of $2,597 million to $2,651 million. This translates to sequential guidance of -2.0% to 0% in constant currency terms," the company stated in a press release on Thursday.
While the company's gross CC revenue saw an uptick of 4% YoY to $9.9 billion for the year-ended March 31, 2026; there was a decline of 0.3% in its IT services segment revenue to $10,478.1 million.
Aparna C Iyer, the Chief Financial Officer (CFO), commented on the guidance and said that it remains soft as the first quarter of any financial year has traditionally been weaker. Besides, Wipro is also facing client issues in "Americas 2 region", which comprises businesses in Canada and select sectors in the US, such as banking and energy.
Moreover, she highlighted that the IT company expects wage hike increases and large deal ramp ups to be headwinds going forward.
Wipro's decline in dollar revenue comes after Tata Consultancy Services Ltd., another Indian IT major, posted its first ever year-on-year decline in CC revenue since 2004. For financial year 2026, TCS' US dollar revenue fell 0.5% compared with the previous year, according to its official earnings statement.
Apart from the IT services sector, weakness was also witnessed in the Banking, Financial Services, and Insurance (BFSI) sector. BFSI segment registered a 1.3% sequential decline in Q4, impacted by ramp up issue.
These issues have to do with bottlenecks, inefficiencies, or failures that occur when a company attempts to rapidly increase production, and ramp up operations. The impact will likely be visible in the first quarter performance of the firm, according to CEO and MD Srini Pallia.
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Wipro Q4 Results Highlights (Cons, QoQ)
- Net Profit up 12.3% at Rs 3,501 crore versus Rs 3,119 crore.
- Revenue up 2.9% at Rs 24,236 crore versus Rs 23,556 crore.
- Board approves buyback at Rs 250 per share, taking its value to Rs 15,000 crore.
Wipro Share Price
Wipro's stock closed 0.24% higher at Rs 210.26 apiece on the NSE, ahead of its financial results announcement. This compares to a 0.14% decline in the Nifty index on Thursday.
The stock has fallen over 20% year-to-date, and 15.10% in the last 12 months. Of the 45 analysts tracking the company on Bloomberg, 11 have a buy call on the stock, 19 suggest holding the stock, and 15 advise selling the shares.
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