- Wipro shares fell nearly 4% after Q4 results and weak near-term revenue guidance
- The company announced a Rs 15,000 crore buyback to be completed by Q1 FY27
- Q4 IT services revenue declined 0.3% year-on-year to $10,478.1 million
Wipro Ltd. shares dropped nearly 4% during early trade on Friday after the company reported fourth quarter results that disappointed the street and gave a lacklustre near-term guidance. Additionally, the company has announced a buyback worth Rs 15,000 crore, which it expects to be completed by the first quarter.
The company projects revenue from IT services will come in at a range of $2,597 million to $2,651 million, translating into sequential guidance of -2.0% to 0% in constant currency terms. Notably, while the company's gross CC revenue saw an uptick of 4% YoY to $9.9 billion, for year-ended March 31, 2026; there was a decline of 0.3% in its IT services segment revenue to $10,478.1 million for the financial year under review.
Besides this, weakness was also witnessed in the Banking, Financial Services, and Insurance (BFSI) segment. BFSI segment registered a 1.3% sequential decline in Q4, impacted by hurdles in scaling up.
These hurdles 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 sustain the first quarter performance of the firm, CEO and MD Srini Pallia said in a post-earnings press conference.
ALSO READ: Wipro ADRs Sink Over 4% After IT Major Projects Degrowth In Q1 IT Services Revenue
Management Comments
Chief Financial Officer Aparna Iyer told NDTV Profit that the company does not currently see artificial intelligence as deflationary, as it is still in the early stages and Wipro is beginning to see early green shoots in AI adoption.
CEO Srini Pallia said the company has a strong pipeline in the BFSI segment, although it has struggled, particularly in the Americas. He noted that Wipro has a robust pipeline in the healthcare vertical as well.
He sees an opportunity to move forward by demonstrating AI capabilities, though clients in the Middle East are currently in a wait-and-watch mode due to uncertainties in the market.
The CEO also stated that the Americas and Europe have shown consistent quarter-on-quarter growth. Overall, Wipro has a secular order pipeline across businesses, with three out of four geographies recording quarter-on-quarter growth in the fourth quarter.
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.
Wipro Q4 Results Highlights (Consolidated, 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.
- Ebit up 19.7% at Rs 4,181 crore versus Rs 3,491 crore.
- EBIT margin at 17.3% versus 14.8%.
Wipro Share Price Movement
Wipro share price tanked as much as 3.7% to Rs 202.5 on the NSE, compared to a 0.2% decline in the benchmark Nifty 50. The stock was the second biggest loser on the blue-chip index.
The relative strength index was below 30, indicating the stock is oversold. The total traded volume stood at 22 times the 30-day average, according to Bloomberg data.
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