Wipro (NYSE:WIT) outlined a cautious near-term revenue outlook while emphasizing large deal momentum and increased focus on AI-led delivery during its fourth-quarter earnings press conference for the period ended March 31, 2026.
Management frames demand environment and client behavior
CEO and Managing Director Srinivas Pallia said geopolitical and policy disruptions have become “the new normal,” pointing to changing trade rules, tighter immigration policies, and ongoing conflicts as sources of uncertainty. Despite those headwinds, he said IT spending has remained resilient, with cloud, data, and AI continuing to draw investment.
Q4 results: flat revenue, slight margin pressure, large deal activity
On performance, Pallia said Wipro’s IT services revenue in the fourth quarter was $2.65 billion, up 0.2% sequentially in constant currency and down 0.2% year-over-year in constant currency. Operating margin was 17.3%, a 30-basis-point sequential contraction.
Order bookings were $3.5 billion, up 3.2% sequentially and down 13.9% year-over-year, Pallia said. He noted Wipro signed 14 large deals totaling $1.4 billion in the quarter.
For the full year, Pallia said IT services revenue was $10.5 billion, a 1.6% year-over-year decline in constant currency. Full-year operating margin was 17.2%, up 15 basis points compared with the prior year.
Regional and sector performance: strength in APMEA and Tech/Comms, softness in Americas 2
Wipro’s results varied by geography and sector. Pallia said Americas 1 posted sequential and year-over-year growth driven by consumer, technology, and communications, while healthcare was impacted by “seasonality and policy changes.” Americas 2 declined sequentially and year-over-year, with Pallia citing delayed ramp-ups on earlier large deals and “certain client-specific issues” in BFSI.
CFO Aparna Iyer provided more detail (all in constant currency):
- Americas 1: +0.3% sequential, +2.9% year-over-year
- Americas 2: -2.6% sequential, -6.7% year-over-year
- Europe: +2.0% sequential, flat year-over-year
- APMEA: +3.1% sequential, +8.8% year-over-year
By sector, Iyer said technology and communications was a bright spot, up 5.3% sequentially and 10.4% year-over-year. BFSI declined 1.3% sequentially and 0.5% year-over-year, while healthcare declined 4.4% sequentially and was flat year-over-year.
During Q&A, Pallia attributed BFSI weakness to a “very specific client issue” and ramp delays on a large deal, saying he expects the ramp to progress and that BFSI pipeline traction remains good in Europe and APMEA.
AI strategy and notable deals, including Olam/Mindsprint
Pallia highlighted APMEA momentum and pointed to a strategic deal with Olam Group that he said is “expected to exceed $1 billion in contract value with a committed spend of $800 million.” As part of the agreement, Wipro is acquiring Mindsprint, Olam’s IT and digital arm. Pallia said the engagement will focus on end-to-end transformation “across farm-to-fork value chain,” and welcomed Mindsprint’s leadership and employees to Wipro.
He also cited two AI-related engagements with “global technology leaders,” including one to “run and improve their frontier AI models” by managing operations such as training, governance, and evaluation, and another with a “leading global semiconductor company” to provide engineering services across the lifecycle, incorporating “AI-driven analytics and automation.”
To support its AI positioning, Pallia said Wipro has launched a dedicated AI-Native Business & Platforms Unit aimed at expanding beyond a services-only model toward a “service-as-software approach.” He said the unit is intended to accelerate “enterprise-grade agentic AI solutions” and incubate AI-led businesses in collaboration with Wipro Ventures and partners.
When asked whether Wipro would disclose AI revenue separately, Pallia said the company is “not calling out AI revenue separately” at this time, adding that Wipro is pushing an “AI first” approach across new projects under the “Wipro Intelligence” branding.
Guidance, cash flow, buyback, and workforce commentary
For the first quarter, Pallia guided for sequential IT services revenue growth of -2% to 0% in constant currency. Iyer reiterated revenue guidance of $2.597 billion to $2.651 billion. She said guidance reflects the company’s visibility at the start of the quarter and includes the impact of two deals that are expected to contribute for “half the quarter” at the midpoint.
Iyer also cited headwinds moving into Q1, including the impact of recent large deal wins and “two incremental months of salary increase,” which she said could create quarterly volatility, though Wipro aims to keep margins in a “narrow band” over the medium term. On Q4 margins, Iyer attributed the 30-basis-point decline to a combination of two incremental months of the HARMAN DTS acquisition and wage increases effective March 1, offset by rupee depreciation and foreign exchange benefits.
Net income for the quarter was INR 35 billion, Iyer said, adding that adjusted for labor code changes, net income rose 3.7% sequentially. EPS was INR 3.3 for the quarter and INR 12.6 for the full year.
On capital returns, Iyer said Wipro’s board approved a buyback of INR 15,000 crores at INR 250 per share, which she described as the company’s largest buyback and equal to 5.7% of paid-up capital, subject to shareholder approval. The buyback is expected to be completed in Q1 FY27. She added that Wipro distributed $1.3 billion in dividends during FY 2026 and that the total payout ratio for the three-year block ending FY 2026 was 88%, above the company’s stated capital allocation policy.
Iyer reported operating cash flows of 112.6% of net income for FY 2026 and gross cash (including investments) of $5.9 billion.
On staffing, CHRO Saurabh Govil said Wipro hired 7,500 freshers in FY 2026, including “more than 3,000+” in Q4, but is not providing hiring targets for the next fiscal year due to a “very volatile environment.” He also said attrition for the quarter was a 20-quarter low at 13.8%. Govil said campus intake has “gradually coming down” over the last four years and described a longer-term industry shift toward revenue that is “less FT intensive,” noting that how quickly the change plays out remains uncertain.
Asked about geopolitical impacts related to the Middle East, Pallia said Wipro’s employees were safe and operations continued without delivery disruption, though he noted some clients may reassess spending and that a “couple of projects” were being slowed. He later said a client-specific issue affecting guidance is expected to be contained with “not have any continuing impact post Q1,” and is “not a result of the Middle East crisis.”
About Wipro (NYSE:WIT)
Wipro Limited (NYSE: WIT) is an Indian multinational corporation that provides information technology, consulting and business process services. Headquartered in Bengaluru, India, the company traces its origins to 1945 when it was founded as Western India Vegetable Products and later diversified into technology and IT services. Today Wipro positions itself as a provider of enterprise IT solutions and digital transformation services for large and mid-sized organizations across multiple industries.
The company’s service portfolio includes application development and maintenance, cloud and infrastructure services, data analytics and AI, cybersecurity, digital consulting, product engineering and research and development, as well as business process services.
