Synopsis
Wipro reported a 1.6% decline in annual revenue in fiscal year 2026 in constant currency terms, in line with its larger rival, Tata Consultancy Services, as geopolitical uncertainties, AI-led disruptions and slow deal ramp-ups weigh on its performanceListen to this article in summarized format
The Bengaluru-headquartered company posted an annual revenue of $10.48 billion in FY26. In the fourth quarter, revenue grew by 7.7% year-on-year and 2.9% quarter-on-quarter to Rs 24,236 crore. While Wipro reported a 12.2% sequential gain in net profit to Rs 3,502 crore, on a year-over-year basis, the fourth quarter net profit declined by 1.9%.
As the outlook for discretionary spending remains uncertain, the Bengaluru-based software services exporter reduced its guidance compared with the previous quarter, despite having made two acquisitions that are due to be closed in the first quarter of FY27.
For the first quarter ending June, Wipro projects revenue to be in the range of $2.59 billion to $2.65 billion, translating into a sequential -2%-0% growth in constant currency (CC) terms.
The company's $375 million acquisition of Mindsprint and Alpha Net Consulting for $70.8 million are expected to be closed at the midpoint of the first quarter, the company said.
Noting that the acquisition will contribute to revenue only at the midpoint of the quarter, analysts at global brokerage Jefferies said in a note that it implied that organic business will likely de-grow 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 Srini Pallia, chief executive officer at Wipro.
The company's board has also approved a Rs 15,000 crore buyback alongside its financial results. This is the company's sixth such share buyback event, having undertaken its last one in 2023.
For the March quarter, revenues were helped by 4.9% sequential growth in the Asia Pacific, Middle East, India, and Africa (APMEA) market, and 2.6% growth in the Europe region. Its largest geographies, Americas 1 and Americas 2, however, grew 0.3% and degrew by 2.6%, respectively. Among verticals, technology and communications led gains with a 5.4% sequential growth, followed by the consumer vertical.
