Wipro Limited reported fourth‑quarter results for the year ended March 31, 2026, with revenue of $2.651 billion and earnings per share of $0.041, matching the consensus estimate of $0.04. The revenue figure was slightly above the $2.620 billion estimate but fell short of the $2.61 billion consensus reported by some analysts, indicating a modest miss in market expectations.
The quarter’s revenue was down 0.3% year‑over‑year to $2.651 billion, compared with $2.581 billion in the same period a year earlier. The IT services segment, which accounts for the bulk of the company’s top line, generated $2.651 billion, a 0.3% decline from $2.678 billion in the prior quarter. The decline was driven by a 1.6% drop in constant‑currency revenue for the segment, reflecting pricing pressure and a shift in client mix toward lower‑margin projects.
Operating margin for the quarter was 17.3%, a 0.3 percentage‑point decline from 17.6% in the prior quarter and 0.2 percentage‑point lower than the 17.5% margin reported a year earlier. The compression was attributed to higher labor costs and the impact of recent acquisitions, while revenue growth remained modest. Net income fell to $388 million from $410 million a year earlier, reflecting the margin squeeze and a higher cost base.
Management guided for the quarter ending June 30, 2026 (Q1 FY27) with IT services revenue in the range of $2.597 billion to $2.651 billion, implying a sequential constant‑currency decline of 2.0% to 0%. The guidance represents a cautious outlook amid macro‑economic uncertainty and competitive pricing pressures, signaling management’s concern about near‑term demand momentum.
CEO Srini Pallia emphasized the company’s pivot to an AI‑first, services‑as‑a‑software model through its AI‑Native Business & Platforms unit, noting that “advancements in AI are reshaping client priorities and creating new opportunities.” CFO Aparna Iyer highlighted continued investment in clients, capabilities, and people, while maintaining margins within a narrow band and reporting strong cash conversion with operating cash flows at 112.6% of net income for FY26.
Investor reaction focused on the revenue miss and the conservative guidance, with analysts noting that the slight revenue shortfall and the potential for a near‑term decline in constant‑currency terms may temper enthusiasm for the company’s growth trajectory, despite the strong large‑deal booking momentum and the strategic AI focus.
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