Wipro reported its Q4 FY26 and full-year FY26 financial results, highlighting steady revenue growth, robust large deal wins, and a strategic pivot toward AI-led services.
For the quarter ended March 31, 2026, Wipro posted gross revenue of $2.58 billion, registering a 2.9 percent sequential increase and 7.7 percent year-on-year growth. IT services revenue stood at $2.65 billion, growing 0.6 percent quarter-on-quarter and 2.1 percent annually, reflecting cautious enterprise spending. Total bookings reached $3.45 billion, with large deal bookings surging to $1.44 billion, driven by strong enterprise demand and strategic contract wins.
Profitability remained stable with operating margin at 17.3 percent, while net income rose 12.3 percent sequentially to $373 million and earnings per share reached $0.041. However, operating cash flow declined 15.3 percent year-on-year to $338 million, accounting for 90.1 percent of net income, indicating weaker quarterly cash conversion.
Attrition at Wipro remained stable at 13.8 percent, reflecting workforce stability.
For the full year FY26, Wipro delivered revenue of $9.9 billion, marking a 4.0 percent annual increase. IT services revenue stood at $10.48 billion, declining by 0.3 percent, highlighting pricing pressures. Despite this, total bookings grew 14 percent to $16.4 billion, and large deal bookings surged 45.4 percent to $7.8 billion, underscoring strong pipeline execution and long-term demand visibility.
Annual net income stood at $1.41 billion, increasing by 0.5 percent, while operating margins improved to 17.2 percent. Operating cash flow reached $1.59 billion, representing 112.6 percent of net income, demonstrating strong annual cash conversion despite quarterly softness.
Operationally, Wipro maintained a headcount of 242,156 employees, with utilization levels between 83.5 percent and 84.5 percent. Offshore revenue contribution remained above 60 percent, supporting cost efficiency.
Sector-wise, banking, financial services and insurance continued to lead with 34.1 percent share, followed by consumer at 18.4 percent and energy, manufacturing and resources at around 16–17 percent.
Geographically, the Americas remained dominant, contributing over 60 percent of revenue.
Customer metrics remained stable, with the top client contributing around 4–5 percent of revenue and the top 10 customers accounting for about 23 percent. Over 97 percent of revenue came from existing clients, while Wipro maintained a strong base of more than 1,200 active customers.
Looking ahead, Wipro expects IT services revenue for the June 2026 quarter to be in the range of $2.60 billion to $2.65 billion, implying a sequential decline of up to 2.0 percent in constant currency, reflecting near-term demand softness.
Wipro CEO Srini Pallia said AI is reshaping client priorities, with the company accelerating its shift toward an AI-first “services as software” model to capture emerging opportunities.
Wipro CFO Aparna Iyer highlighted disciplined margin management and strong shareholder returns, including a $1.8 billion buyback (₹15,000 crore), reinforcing Wipro’s focus on capital efficiency and long-term value creation.
“Wipro reported a steady Q4FY26, with gross revenue rising 2.9 percent quarter-on-quarter and 7.7 percent year-on-year. IT Services revenue saw a slight increase, reflecting ongoing caution in client spending. The company secured major deals worth $1.44 billion, up 65 percent from the previous quarter, mainly in AI and cost optimization projects,” Biswajit Maity, Senior Principal Analyst, Gartner, said.
Wipro’s strategy is shifting toward quality-led, AI-focused growth, moving away from traditional application outsourcing to higher-value transformation programs. Management’s emphasis on a consulting-led, AI-powered model, anchored by Wipro Intelligence, positions the firm to stay relevant as enterprise clients reprioritize their technology investments.
Looking ahead to FY27, the IT services sector is expected to recover gradually. Gartner forecasts robust growth in IT spending, increasing from $5,563.8 billion in 2025 to $6,316.5 billion in 2026 — an over 10 percent rise. Overall, the outlook for the IT sector remains positive, and Wipro’s strengths in consulting and technology should support its growth in this environment, Biswajit Maity said.
RAJANI BABURAJAN
