Q4 Revenue and Sequential Growth
IT Services revenue for Q4 was $2.65 billion, with sequential growth of +0.2% (constant currency) and reported growth of +0.6%.
April 16th, 2026
Summary
- Earnings Call Date:
- 2026-04-16
- Change Since:
- +1.39%
- Next Earnings Date:
- 2026-07-16
Earnings Call Sentiment
NeutralThe call presented a mixed picture: solid cash generation, strategic AI and platform investments, large deal wins (including a >$1B APMEA engagement), a strong buyback and sector-level strength in Technology & Communications are positives. Offsetting these are year-on-year revenue declines, a meaningful slowdown in Americas 2/BFSI driven by delayed ramp-ups and client-specific issues, weaker YoY order bookings, and near-term margin headwinds from wage increases, deal ramp characteristics and integration/investment costs. Management reiterated a cautious near-term revenue outlook (Q1 guidance -2% to 0% CC) but emphasized medium-term margin discipline and continued strategic investment in AI and platforms.
Company Guidance
Wipro guided IT Services revenue for Q1 to $2.597–$2.651 billion, which implies sequential constant‑currency growth of −2% to 0%; management said the midpoint of the range assumes the two recently announced strategic deals begin contributing roughly 1.5 months of revenue (i.e., start mid‑quarter) and that HARMAN/DTS is already in the run‑rate, while calling out headwinds from two months of recently implemented salary increases and early‑stage, competitively priced ramp‑ups that could cause quarter‑to‑quarter volatility. Management reiterated an objective to keep operating margins in a narrow band (Q4 margin was 17.3%; FY26 margin 17.2%, +15 bps YoY) even as it accelerates investments in AI‑native platforms and absorbs deal start‑up effects.
Full-Year Revenue and Margin Resilience
FY '26 IT Services revenue of $10.5 billion (constant currency) declined -1.6% year-on-year, while full-year operating margin expanded ~15 basis points to 17.2%, demonstrating margin resilience.
Strong Cash Generation and Balance Sheet
Operating cash flow was 112.6% of net income for FY '26. Gross cash and investments were approximately $5.9 billion and accounting yield on India investments was 7.3%.
Large Deal Wins and Order Bookings
Q4 order bookings were $3.5 billion (seq +3.2%). The company closed 14 large deals in the quarter totaling $1.4 billion, including strategic engagements with a global technology leader and a leading semiconductor company.
Major APMEA Strategic Engagement
Announced a strategic APMEA deal expected to exceed $1 billion in contract value with a committed spend of $800 million — one of the largest engagements for Wipro in the region.
AI-Native Business & Platform Strategy
Launched a dedicated AI-native business and platforms unit to transition beyond services to services-as-software, including invest/build/partner approach and focused leadership to accelerate enterprise-grade agentic AI solutions.
Sector-level Strength in Technology & Communications
Technology & Communication sector grew +5.3% sequentially and +10.4% year-on-year (constant currency), representing a strong vertical performance.
Shareholder Returns — Largest Buyback Announced
Board approved a buyback of INR 15,000 crores (~INR 250 per share) to buy back ~5.7% of paid-up capital — the largest buyback announced by the company; FY '26 dividends of $1.3 billion and a 3-year payout ratio of ~88%.
Capco and Consulting Momentum
Capco reported strong sequential and year-on-year revenue performance, contributing to consulting and advisory momentum, particularly in AI and BFSI engagements.
Operator
Ladies and gentlemen, good day, and welcome to Wipro Limited Q4 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded and the duration for today's call will be for 45 minutes. I now hand the conference over to Mr. Abhishek Jain, Vice President, Corporate Treasurer and Head of Investor Relations. Thank you, and over to you.
Abhishek Jain
Yes, [ Sashi ]. Thank you. Warm welcome to our Q4 FY '26 earnings call. We'll begin the call with business highlights and overview by Srinivas Pallia, our Chief Executive Officer and Managing Director, followed by updates on financial overview by our CFO, Aparna Iyer; we also have our CHRO, Saurabh Govil; and our Chief Strategist and Technology Officer, Hari Shetty on this call. Afterwards, the operator will open the bridge for Q&A with our management team. Before Srini starts, let me draw your attention to the fact that during this call, we may make certain forward-looking statements within the meaning of the Private Securities Litigation Reforms at 1995. These statements are based on management's current expectations and are associated with uncertainties and risks, which may cause the actual results to differ materially from those expected. The uncertainty and risk factors are explained in our detailed filings with the SEC.
Wipro does not undertake any obligation to update the forward-looking statements to reflect events and circumstances after the date of filing. The conference call will be archived and a transcript will be available on our website. With that, I would like to turn over the call to S...
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