Wipro Share Price declines 2%. Company announces largest buyback worth ₹15,000 crore

17 Apr 2026 , 03:44 PM

Shares of Wipro Ltd. closed at 204.30, down 2.83% post announcing its results for Q4FY26 and FY26.

Wipro Ltd reported a mixed but broadly stable performance for the quarter ended March 2026 (Q4 FY26), reflecting steady execution in a challenging global IT services environment. While revenue and deal momentum showed bounce-back, profitability remained largely flat year-on-year, underscoring continued client caution and macroeconomic uncertainty in discretionary technology spending.

Financial Performance: Steady Revenue Growth, Marginal Profit Decline

For Q4 FY26, Wipro reported a net profit of ₹3,502 crore, marking a 2% decline year-on-year from ₹3,570 crore in Q4 FY25, but a 12% sequential increase from ₹3,119 crore in Q3 FY26. The sequential improvement indicates operational stability despite uneven demand conditions across markets.

Revenue for the quarter stood at ₹24,236 crore, reflecting a strong 8% year-on-year growth, driven by large deal conversions and continued demand for transformation-led services. On a broader tracking basis, gross revenue grew 2.9% quarter-on-quarter and 7.7% year-on-year, indicating sustained underlying business momentum.

In the IT services segment, revenue reached $2,651 million, up 0.6% sequentially and 2.1% year-on-year, highlighting slow but positive growth in constant currency terms.

Summary of Financial Performance – Q4FY26 (Quarter ended March 31, 2026)

Metric	Q4 FY26	QoQ Change	YoY Change	Notes
Gross Revenue	₹242.4 billion ($2,583.0M)	+2.9%	+7.7%	Broad-based revenue growth
IT Services Revenue	$2,651.0 million	+0.6%	+2.1%	Slow but positive growth
Non-GAAP Constant Currency IT Services Revenue	—	+0.2%	-0.2%	Flat-to-mild decline in constant currency terms
Total Bookings	$3,455 million	+3.2% (CC)	—	Improved deal inflow
Large Deal Bookings	$1,440 million	+65.1% (CC)	—	Strong acceleration in large deals
IT Services Operating Margin	17.3%	-0.3 ppt	-0.2 ppt	Slight margin pressure
Net Income	₹35.0 billion ($373.2M)	+12.3%	-1.9%	Strong QoQ recovery, slight YoY decline
EPS	₹3.34 ($0.04)	+12.1%	-2.1%	In line with net income trend
Adjusted Net Income (Labour Code impact)	₹34.9 billion ($371.5M)	+3.7%	—	Normalized earnings view
Adjusted EPS	₹3.33 ($0.04)	+3.7%	—	Reflects normalized profitability
Operating Cash Flow	₹31.7 billion ($338.2M)	—	-15.3%	Cash flow decline YoY
Cash Flow as % of Net Income	90.1%	—	—	Strong cash conversion
Voluntary Attrition	13.8% (TTM)	—	—	Workforce stability metric

Summary of Financial Performance – FY26 (Year ended March 31, 2026)

Metric	FY26	YoY Change	Notes
Gross Revenue	₹926.2 billion ($9.9B)	+4.0%	Moderate annual growth
IT Services Revenue	$10,478.1 million	-0.3%	Slight decline in core services
Non-GAAP Constant Currency IT Services Revenue	—	-1.6%	Marginal contraction
Total Bookings	$16.4 billion	+14.0%	Strong deal pipeline expansion
Large Deal Bookings	$7.8 billion	+45.4%	Significant growth in large contracts
IT Services Operating Margin	17.2%	+0.2 ppt	Stable margin performance
Net Income	₹132.0 billion ($1.406B)	+0.5%	Flat earnings growth
EPS	₹12.6 ($0.13)	+0.3%	Stable per-share earnings
Adjusted Net Income	₹134.3 billion ($1.431B)	+2.2%	Normalized earnings improvement
Adjusted EPS	₹12.8 ($0.14)	+2.1%	Slight improvement YoY
Operating Cash Flow	₹149.3 billion ($1.591B)	-11.9%	Lower cash generation YoY
Cash Flow as % of Net Income	112.6%	—	Strong annual cash conversion

Deal Wins and Demand Trends: Large Deals Drive Growth

A key highlight of the quarter was strong growth in large deal wins, which reached $1.44 billion, up 65% quarter-on-quarter. This surge indicates a shift in client spending patterns, where enterprises are consolidating vendors and prioritizing fewer but larger transformation contracts.

The growth is increasingly being driven by:

• AI transformation initiatives
• Enterprise cost optimisation programs
• Vendor consolidation strategies

Rather than broad-based volume expansion, revenue gains are being supported by higher-value, outcome-oriented engagements.

Strategic Shift: AI-First and Platform-Led Growth

Wipro management emphasized a clear strategic pivot toward an AI-first operating model. CEO Srini Pallia highlighted that artificial intelligence is fundamentally reshaping client priorities and the nature of IT demand.

The company is increasingly positioning itself for what it calls an “AI-first world,” with a transition toward a “services-as-a-software” model. This includes expanding its AI Native Business & Platforms unit, which is expected to play a central role in delivering scalable, automated, and platform-driven services.

A notable example of this approach includes large-scale AI-led partnerships such as the engagement with Olam Group, reflecting deeper, transformation-oriented client relationships.

Management also emphasized reinvestment of operational efficiencies into AI capabilities, aiming to strengthen long-term competitiveness even in a subdued demand environment.

Margin Stability and Cash Flow Strength

Despite macro pressures, Wipro maintained stable margins within a narrow range. CFO Aparna Iyer noted strong financial discipline and highlighted robust cash generation.

Operating cash flows stood at 112.6% of net income for FY26, underscoring efficient working capital management and strong cash conversion.

The company also continued to invest in:

• Client transformation programs
• Capability development
• Workforce upskilling

Outlook: Near-Term Softness, Gradual Recovery Expected

Wipro’s guidance for Q1 FY27 indicates continued near-term pressure, with IT services revenue expected between $2,597 million and $2,651 million, implying a -2% to 0% sequential growth range (constant currency).

Global IT spending is projected to rise from $5,563.8 billion in 2025 to $6,316.5 billion in 2026, representing over 10% growth, which may eventually translate into stronger enterprise IT demand.

Hiring Trends: Productivity Over Expansion

Wipro hired approximately 7,500 freshers in FY26, including around 3,000 in Q4. However, the company has not announced a hiring target for FY27, reflecting uncertainty in demand and increasing focus on AI-driven productivity improvements.

This signals a shift from traditional headcount-led growth to efficiency-led delivery models, where automation and AI reduce dependence on incremental hiring.

₹15,000 Crore Share Buyback

In a significant capital return move, Wipro announced its largest-ever share buyback worth ₹15,000 crore at ₹250 per share, subject to shareholder approval. This reinforces the company’s strong cash position and continued focus on shareholder returns.

The buyback follows a series of previous repurchase programs, including:

• ₹2,500 crore (2016)
• ₹11,000 crore (2017)
• ₹10,500 crore (2019)
• ₹9,500 crore (2020)
• ₹12,000 crore (2023)

 

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Stock prices are as of 17th April 2026 03:30 PM on NSE. Source for Financial Data – Wipro