Wipro Limited — Q4 FY26 earnings call

Call held 16 Apr 2026

Management summary

Wipro concluded FY26 with mixed results, reporting Q4 IT Services revenue of $2.65 billion and an operating margin of 17.3%. While order booking remained healthy at $3.5 billion, the company faces near-term challenges, particularly in Americas 2 and with margin pressures from wage hikes and strategic AI investments. A significant INR15,000 crore share buyback was announced, and Q1 FY27 revenue guidance points to a sequential decline or flat performance.

Highlights

  • Q4 IT Services revenue of $2.65 billion, reflecting a sequential growth of 0.2% in constant currency.

  • Q4 order booking was strong at $3.5 billion, growing 3.2% sequentially, with 14 large deals totaling $1.4 billion.

  • Full year FY26 operating margin expanded by 15 basis points to 17.2% compared to FY25.

  • Operating cash flow for FY26 was robust at 112.6% of net income.

  • The Board approved the largest buyback in Wipro's history, INR15,000 crores at INR250 per share, representing 5.7% of paid-up capital.

  • Capco continues to perform very well, achieving its highest revenues in several quarters and contributing significantly to AI advisory.

Concerns

  • Q4 IT Services revenue experienced a degrowth of 0.2% on a YoY basis in constant currency.

  • Operating margin contracted by 30 basis points sequentially in Q4 to 17.3%.

  • Order booking for Q4 saw a degrowth of 13.9% on a YoY basis.

  • Americas 2 declined 2.6% sequentially and 6.7% YoY in constant currency, primarily due to client-specific issues and delayed ramp-ups in the BFSI sector.

  • Q1 FY27 revenue guidance is projected at -2% to 0% sequential growth in constant currency, indicating near-term headwinds.

Key financials

2 periods

Headline

  • IT Services Revenue
    2.65 Bn
    YoY -0.2% QoQ +0.2%
  • Operating Margin
    17.3%
    YoY -0.2% QoQ -0.3%
  • Net Income
    35 Bn
    QoQ +3.7%
  • EPS
    ₹3.3

FY26

  • IT Services Revenue
    10.5 Bn
    YoY -1.6%
  • Operating Margin
    17.2%
    YoY +0.15%

What they filed

Q1 FY27: revenue up 10.6%, net profit up 0.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue22,302 22,319 22,504 22,135 22,697 +2%23,556 +6%24,236 +8%24,479 +11%
EBITDA4,503 4,540 4,624 4,233 4,372 −3%4,296 −5%4,909 +6%4,633 +9%
Net profit3,227 3,367 3,588 3,336 3,262 +1%3,145 −7%3,522 −2%3,356 +1%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Americas 1
    0.3% Growth2.9% Growth
  • Americas 2
    -2.6% Decline-6.7% Decline
  • Europe
    2% Growth0% Growth
  • APMEA
    3.1% Growth0.8% Growth
  • BFSI
    -1.3% Decline-0.5% Decline
  • Health
    -4.4% Decline0% Growth
  • Consumer
    1.7% Growth-2.9% Decline
  • Technology and Communication
    5.3% Growth10.4% Growth
  • EMR
    1.1% Growth-5.9% Decline

Order book

high confidence

Total value

$3.5 Bn

as of 2026-03-31 quantified

-13.9% YoY 3.2% QoQ

Inflow this quarter

$3.5 Bn

Composition

  • Large Deals (deal size) $1.4 Bn

Pipeline

deal pipeline tcv

Strong pipeline across markets and sectors

Order booking for Q4 was $3.5 billion, including 14 large deals totaling $1.4 billion, showing sequential growth but YoY degrowth. The company maintains a strong pipeline across all markets and sectors.

Source: Prepared remarks

Capital allocation

high confidence
  • Buyback ₹15,000 Cr Max ₹250/share
    Lastly, I'd like to share that in our recently concluded Board meeting, the Board of Directors have announced and approved a buyback of INR15,000 crores at a price of INR250 per share. This is the largest buyback that Wipro has announced, and we expect to buy back 5.7% of the paid-up capital. The buyback is expected to complete in Q1 '27 subject to shareholder approval.
  • M&A Olam Group Acquisition · Announced · Consideration $1 Bn (undisclosed)

    Strategic deal, largest engagement to date in APMEA, transformational

    Expected to exceed $1 billion in contract value with a committed spend of $800 million.

    A strong example is the strategic deal we announced recently with the Olam Group, expected to exceed $1 billion in contract value with a committed spend of $800 million. This is one of our largest engagements to date in APMEA.
  • Liquidity Cash $5.9 Bn Gross cash including investments was at $5.9 billion.
    Our gross cash including investments was at 5.9 billion.

Guidance & targets

Revenue

  • IT Services Revenue Revenue · Q1 FY27 · High confidence $2.597 billion to $2.651 billion
    In Q1, we are guiding for a sequential growth of minus 2% to 0% in constant currency terms. ... we expect our revenue from IT Services business segment to be in the range of $2.597 billion to $2.651 billion. This translates a sequential guidance of minus 2 to zero in constant currency terms.

    — Aparna Iyer

Profitability

  • Operating Margin Profitability · medium term · Medium confidence narrow band
    Having said that, our endeavour would be to maintain these margins in a narrow band in the medium term.

    — Aparna Iyer

What to watch in Q1 FY27

Americas 2 BFSI Sector Performance

next quarter
Current Declined 2.6% QoQ and 6.7% YoY (CC) in Q4 FY26 due to client-specific issues and delayed ramp-ups.
Target Recovery in sequential and YoY growth, indicating resolution of client-specific issues and ramp-up of delayed deals.

Why it matters

Americas 2 BFSI is a significant segment, and its recovery is crucial for overall growth, as management expects issues to resolve in Q1.

Americas 2 decline sequentially and on a YoY basis. The BFSI sector was impacted by delayed ramp-ups on some large deals that were closed earlier this year and by certain client-specific issues. ... So as far as this particular client is concerned, it will end in quarter 1, Sandeep, and there is no further impact for us materially.

Risks & concerns

  • Client-specific issues and delayed ramp-ups in Americas 2 BFSI

    medium

    Americas 2 BFSI sector impacted by delayed ramp-ups on large deals and certain client-specific issues, leading to sequential and YoY decline.

    Both acknowledged

  • Geopolitical and policy disruptions

    medium

    Geopolitical and policy disruptions have become the new normal, creating headwinds for IT spending decisions.

    Management acknowledged

  • Margin pressure from wage hikes, large deals, and AI investments

    medium

    Q1 FY27 will see headwinds from two months of salary increases, lower margins from competitive large deals, and significant investments in AI-native platforms.

    Management acknowledged

  • Manufacturing sector pressure from tariff flood disruptions and input costs

    low

    Manufacturing clients are under pressure from tariff flood disruptions and are closely watching input costs, leading to tightening budgeting.

    Management acknowledged

Q&A highlights

4 direct
Reasons for delays in large deals and impact on Q1 guidance Partial
This has been a combination of both client-specific issue and delayed ramp-up that that you're talking about. The reason for the delay is a very client specific, but we see opportunity coming up sooner than later, and that will give us the growth in that particular account and that particular sector.

Analyst questioned why large deal wins weren't translating into better guidance, revealing client-specific issues and delayed ramp-ups as key factors impacting near-term growth.

Asked by Sandeep Shah

Decline in top clients and its temporary nature Direct
Ravi, if you look at it, our top client has been producing a healthy growth for us a fairly long time, right? This kind of one-off quarter volatility is not something that we are unduly concerned about. The relationship remains very strong, and you should continue to see it bounce back.

Analyst highlighted a sharp decline in top client revenue, and management reassured it was a temporary 'one-off quarter volatility' for a long-standing strong relationship.

Asked by Ravi Menon

Sustainability of margins given wage hikes and HARMAN integration Direct
Yes, there are three areas where we are going to be investing in. We've already rolled out the wage hike effective first March. So we will have 2 months incremental impact, which will have to be absorbed, right, in Q1. Two, we are winning some of these large deals and they are one in a competitive environment. They will come with their share of lower margins, especially as we start these deals, right? Second, there is certainly around capabilities. We've acquired the DTS HARMAN connected services fees, which is also putting pressure on margins. And as I look ahead, we will continue to actually accelerate investments, especially around Wipro Intelligence, the platform unit that we have announced. And it will need a lot of investment that we will work through and share with you transparently as we go through the process as we form our strategy around it, that will also be an area of focus for investment.

Analyst questioned margin sustainability, and management detailed multiple headwinds (wage hikes, large deal margins, HARMAN integration, AI investments) that will pressure Q1 margins but reiterated commitment to medium-term narrow band.

Asked by Vibhor Singhal

Consistency of client-specific issues in Americas 2 over multiple years Partial
Yes. I think this quarter, as well as last quarter, it was something that we called out as well, very specifically for the two reasons like you mentioned in your question itself. But 1 is the specific client ramp-up that has not happened upon I talked in detail about that. But we feel and I also answered that question, we feel fairly confident that clients come back because there was some directional change, and they wanted to pause before they had the clarity around that.

Analyst probed if Americas 2 issues were a persistent trend rather than isolated incidents, indicating deeper structural concerns, which management attributed to specific client ramp-up delays and strategic pauses.

Asked by Prateek Maheshwari

Wipro's strategy and partnerships for AI Direct
You're right, AI is a central strategy for Wipro. Two quarters back, we had launched Wipro Intelligence, which is a combination of industry and cross industry and functional platforms and solutions. And this quarter, rather the last quarter, we announced the formation of AI native business and platform unit.

Analyst asked about Wipro's AI strategy compared to peers, leading management to detail their internal AI-native business unit and platform approach rather than just external partnerships.

Asked by Prateek Maheshwari

Outlook for US BFSI sector Direct
So I think from an overall see I think the best way for me to reflect, Prateek, in your question is the kind of pipeline that we have. And I need to talk about having a very secular pipeline across industries and across markets. And your question specifically to BFSI, if you were to look at Americas and Europe and APMEA. And also the Capco question that came up. We continue to see very good traction. We continue to see a very good pipeline.

Analyst sought clarity on the US BFSI outlook, given softness in Americas 2, and management responded with confidence in a strong, secular pipeline across geographies and Capco's contribution.

Asked by Prateek Maheshwari

3 min read 7 chapters

Detailed narrative

Q4 FY26 Performance Overview

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 and Large Deal Momentum

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.

Geographical and Sectoral Performance

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.

Q1 FY27 Revenue Guidance and Margin Outlook

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.

Strategic AI Investments and AI-Native Unit

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.

Capital Allocation and Shareholder Returns

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 Performance and Contribution

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.

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