Wipro

Wipro reported Q4 FY26 IT Services revenue of $2.65 billion, marking a sequential growth of 0.2% in constant currency, though experiencing a YoY degrowth of 0.2%. The operating margin for the quarter stood at 17.3%, a contraction of 30 basis points sequentially. For the full year FY26, IT Services revenue reached $10.5 billion, with a YoY degrowth of 1.6%, while the full year operating margin expanded by 15 basis points to 17.2%.

Order booking for Q4 FY26 was strong at $3.5 billion, representing a sequential growth of 3.2%, despite a YoY degrowth of 13.9%. The quarter saw 14 large deals totaling $1.4 billion. A significant strategic deal with the Olam Group was announced, expected to exceed $1 billion in contract value with a committed spend of $800 million, marking Wipro's largest engagement to date in APMEA.

Americas 1 delivered sequential and YoY growth, while Americas 2 experienced a decline of 2.6% sequentially and 6.7% YoY, primarily due to client-specific issues in the BFSI sector. Europe grew 2% sequentially and remained flat YoY, showing good traction in the UK and Germany. APMEA grew 3.1% sequentially and 0.8% YoY, driven by Southeast Asia. BFSI and Health sectors saw sequential declines of 1.3% and 4.4% respectively, while Technology and Communication grew 5.3% sequentially.

For Q1 FY27, Wipro guided for IT Services revenue in the range of $2.597 billion to $2.651 billion, translating to a sequential growth of minus 2% to 0% in constant currency terms. Management anticipates margin pressures in Q1 due to the full impact of salary increases (two incremental months), lower margins from competitive large deals, and continued investments in AI capabilities. However, the company aims to maintain margins within a narrow band in the medium term through operational improvements and cost takeout.

Wipro has made a deliberate strategic pivot towards AI, launching a dedicated AI-native business and platforms unit. This unit aims to expand beyond a services-only model to a 'services-as-a-software' approach, focusing on enterprise-grade agentic AI solutions. The company is partnering with global technology leaders to run and improve frontier AI models and provide engineering services for semiconductor companies, leveraging AI-driven analytics and automation.

The Board approved the largest buyback in Wipro's history, totaling INR15,000 crores at a price of INR250 per share, expected to buy back 5.7% of the paid-up capital and complete in Q1 FY27. For FY26, Wipro distributed $1.3 billion in dividends, resulting in a total payout ratio of 88% for the three-year block ending FY26, significantly above the minimum threshold of 70%. The company reported gross cash including investments of $5.9 billion.

Capco, Wipro's consulting arm, continued its strong performance, achieving its highest revenues in several quarters. It demonstrated very good sequential and YoY growth, playing a crucial role in AI advisory and consulting. Capco is proactively shaping client thought processes regarding geopolitics, trade, tariffs, and technology transitions, making a significant difference in Wipro's overall offerings.