Wipro reports its fourth quarter results on Thursday, with brokerages flagging weak revenue growth, pressure in key verticals, and lacklustre near-term guidance, even as margins held steady and the company announced a sizeable buyback.
While Jefferies in its first reaction pointed out limited growth visibility, Morgan Stanley said the fourth quarter results were largely in-line with its expectations.
Here's what brokerages have to say:
Jefferies
According to analysts at Jefferies, the quarter was “weak,” with revenue growth of just 0.2% quarter-on-quarter in constant currency terms, coming in near the lower end of guidance and slightly below expectations. IT services revenue stood at $2.65 billion, while full-year FY26 revenues declined 1.6% year-on-year in constant currency.
Profitability, while stable, also disappointed on expectations. EBIT margins came in at around 17.2%–17.3%, broadly flat sequentially but slightly below estimates. Net profit at around Rs 3,500 crore declined 2% year-on-year, missing forecasts. The margin performance was impacted by higher employee costs, including wage hikes and the integration of the Harman acquisition, as well as increased subcontracting expenses. These were partly offset by favourable currency movement, lower depreciation and amortisation, and provision reversals.
Revenue performance was uneven across verticals and geographies. The BFSI and healthcare segments declined 1.3% and 4.4% sequentially, respectively, with weakness particularly visible in the payer segment. The Americas region remained a key drag, especially Americas 2, which saw a 2.6% sequential decline.
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Overall bookings declined 11% year-on-year in constant currency, with large deals down 20% and non-large deals falling 15%, reflecting continued weakness in discretionary IT spending.
The biggest concern flagged by analysts is limited growth visibility. Wipro has guided for -2% to 0% sequential revenue growth in constant currency for Q1 FY27. Management indicated that even this includes contributions from recent deals and acquisitions, implying that the core business could see further contraction. Delays in ramp-up of large deals and account-specific issues in the Americas were cited as key reasons.
Additionally, revenue from Wipro's top client fell sharply by 8% quarter-on-quarter. On the positive side, the technology vertical grew 5.3%, supported by the Harman contribution, while consumer and energy segments posted modest gains.
Morgan Stanley
Morgan Stanley also highlighted the "revenue miss", noting that organic growth was weaker than headline numbers suggest. However, deal wins were broadly in line with expectations. Total contract value (TCV) for the quarter stood at $3.455 billion, with large deal bookings at $1.44 billion marking a strong 65% sequential increase. This indicated some traction in large contracts.
On the operational side, attrition improved slightly to 13.8%, while net headcount addition remained modest at 135 employees in the quarter, signalling cautious hiring amid demand uncertainty.
Balancing the weak operating performance, Wipro announced a Rs 15,000 crore buyback at Rs 250 per share, a 19% premium to the current market price, broadly in line with previous buybacks. This comes in addition to a dividend payout of Rs 11 per share for FY26, underlining the company's continued focus on shareholder returns.
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