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India’s fourth-largest software exporter, Wipro, on Thursday reported a 1.6% fall in revenue for fiscal 2026 in constant currency terms, in line with market leader Tata Consultancy Services, as geopolitical uncertainties, AI-led disruptions and slow deal ramp-ups weighed on its performance.
The Bengaluru-headquartered company posted revenue of $10.48 billion for the year ended March 31.
For the fourth quarter, revenue grew 7.7% from a year earlier and 2.9% sequentially to Rs 24,236 crore. Net profit fell 1.9% on year to Rs 3,502 crore but rose 12.2% from the prior three-month period.
As the outlook for discretionary spending remains uncertain, Wipro issued a tempered forecast for the ongoing quarter, despite having made two acquisitions that are due to be closed halfway through the quarter.
For the first quarter ending June, Wipro projected revenue to be in the range of $2.59 billion to $2.65 billion, or 2% lower to flat compared with the January-March period in constant currency.
The acquisition of Mindsprint and Alpha Net Consulting are expected to be closed at the midpoint of this quarter, Wipro said.
Analysts at Jefferies said Wipro’s organic business, which excludes these acquisitions, will likely shrink in Q1.
“Geopolitical and policy disruptions have become the new normal, and tighter immigration policies and conflicts continue to create uncertainties for industries and economies. Despite these headwinds, IT spending has shown resilience; cloud, data and AI continue to attract investments,” said Wipro chief executive Srini Pallia.
The company’s board approved a Rs 15,000 crore share buyback alongside its financial results. This is its sixth share repurchase and the first after 2023.
In dollar terms, Wipro met its own guidance by posting 0.2% sequential growth in revenue at $2.65 billion. Its outlook for Q4 was in the range of $2.63 billion to $2.68 billion.
An ET poll of brokerages had forecast a 4.3% sequential increase in revenue and 10.4% expansion in net profit.
For the March quarter, 4.9% sequential growth in the Asia Pacific, Middle East, India and Africa market, and 2.6% expansion in the Europe region contributed to growth. Revenue grew 0.3% in Americas 1 and shrank 2.6% in Americas 2. The Americas are its largest markets.
Among verticals, technology and communications led gains with 5.4% sequential growth, followed by the consumer vertical. Its largest vertical, banking, financial services and insurance, which accounts for 34% of its revenue, posted a 0.8% fall in revenue.
“The BFI sector was impacted by delayed ramp-ups on some large deals that were closed earlier this year and by certain client-specific issues,” Palia said.
Total deal bookings expanded 13.9% year-on-year to $3.5 billion in FY26. Large deal bookings rose 18.5% to $1.4 billion.
The management insisted on no material impact on revenue from the West Asia war.
“The Wipro results reflect a mixed operating environment, shaped by cautious market conditions and pauses in discretionary spending across several of its core industries. While not a significant business, Wipro does have relatively higher exposure to Middle East-driven programs than some peers,” said Gaurav Parab, principal research analyst at NelsonHall
“At the same time, continued traction in large deal bookings suggests that pipeline momentum remains intact, even as revenue conversion timelines remain extended,” he added.
Wipro’s NYSE-listed American Depositary Receipts traded 1% lower in early trading after the results.
TCS last week reported its first annual revenue decline since going public at 2.4% in constant currency terms, dented by AI-led disruption.
While companies have not yet recorded any major revenue impact due to the ongoing West Asia war, some caution is baked in, in case it continues.
Wipro’s operating margin, a key metric for IT firms, dropped to 17.2% from 17.6% in the December quarter and 17.5% a year earlier.
Headcount
Attrition went down to 13.8% from 14.2% in the fourth quarter. After a net addition of 6,529 employees in the December quarter, Wipro added just 136 employees between January and March, taking the total headcount to 242,156. The company now hires only as per project demand.
The company in the December quarter had reduced its fresher hiring target to 7,500-8,500 for FY26 from 10,000.
While it hired 7,500 freshers in the year, no hiring targets were given for FY27, citing “a volatile environment”.
In light of the controversy around workplace conduct at TCS, Govil said its Prevention of Sexual Harassment committee operates independently and does not report to any individual within the organisation.
The Bengaluru-headquartered company posted revenue of $10.48 billion for the year ended March 31.
For the fourth quarter, revenue grew 7.7% from a year earlier and 2.9% sequentially to Rs 24,236 crore. Net profit fell 1.9% on year to Rs 3,502 crore but rose 12.2% from the prior three-month period.
As the outlook for discretionary spending remains uncertain, Wipro issued a tempered forecast for the ongoing quarter, despite having made two acquisitions that are due to be closed halfway through the quarter.
For the first quarter ending June, Wipro projected revenue to be in the range of $2.59 billion to $2.65 billion, or 2% lower to flat compared with the January-March period in constant currency.
The acquisition of Mindsprint and Alpha Net Consulting are expected to be closed at the midpoint of this quarter, Wipro said.
Analysts at Jefferies said Wipro’s organic business, which excludes these acquisitions, will likely shrink in Q1.
“Geopolitical and policy disruptions have become the new normal, and tighter immigration policies and conflicts continue to create uncertainties for industries and economies. Despite these headwinds, IT spending has shown resilience; cloud, data and AI continue to attract investments,” said Wipro chief executive Srini Pallia.
The company’s board approved a Rs 15,000 crore share buyback alongside its financial results. This is its sixth share repurchase and the first after 2023.
In dollar terms, Wipro met its own guidance by posting 0.2% sequential growth in revenue at $2.65 billion. Its outlook for Q4 was in the range of $2.63 billion to $2.68 billion.
An ET poll of brokerages had forecast a 4.3% sequential increase in revenue and 10.4% expansion in net profit.
For the March quarter, 4.9% sequential growth in the Asia Pacific, Middle East, India and Africa market, and 2.6% expansion in the Europe region contributed to growth. Revenue grew 0.3% in Americas 1 and shrank 2.6% in Americas 2. The Americas are its largest markets.
Among verticals, technology and communications led gains with 5.4% sequential growth, followed by the consumer vertical. Its largest vertical, banking, financial services and insurance, which accounts for 34% of its revenue, posted a 0.8% fall in revenue.
“The BFI sector was impacted by delayed ramp-ups on some large deals that were closed earlier this year and by certain client-specific issues,” Palia said.
Total deal bookings expanded 13.9% year-on-year to $3.5 billion in FY26. Large deal bookings rose 18.5% to $1.4 billion.
The management insisted on no material impact on revenue from the West Asia war.
“The Wipro results reflect a mixed operating environment, shaped by cautious market conditions and pauses in discretionary spending across several of its core industries. While not a significant business, Wipro does have relatively higher exposure to Middle East-driven programs than some peers,” said Gaurav Parab, principal research analyst at NelsonHall
“At the same time, continued traction in large deal bookings suggests that pipeline momentum remains intact, even as revenue conversion timelines remain extended,” he added.
Wipro’s NYSE-listed American Depositary Receipts traded 1% lower in early trading after the results.
TCS last week reported its first annual revenue decline since going public at 2.4% in constant currency terms, dented by AI-led disruption.
While companies have not yet recorded any major revenue impact due to the ongoing West Asia war, some caution is baked in, in case it continues.
Wipro’s operating margin, a key metric for IT firms, dropped to 17.2% from 17.6% in the December quarter and 17.5% a year earlier.
Headcount
Attrition went down to 13.8% from 14.2% in the fourth quarter. After a net addition of 6,529 employees in the December quarter, Wipro added just 136 employees between January and March, taking the total headcount to 242,156. The company now hires only as per project demand.
The company in the December quarter had reduced its fresher hiring target to 7,500-8,500 for FY26 from 10,000.
While it hired 7,500 freshers in the year, no hiring targets were given for FY27, citing “a volatile environment”.
In light of the controversy around workplace conduct at TCS, Govil said its Prevention of Sexual Harassment committee operates independently and does not report to any individual within the organisation.
