Wipro (NYSE:WIT) outlined steady fourth-quarter execution amid what management called an increasingly disruptive global backdrop, while also flagging near-term revenue pressure in its guidance and announcing its largest-ever share repurchase. Executives emphasized continued client interest in cloud, data, and AI-related programs, alongside more outcome-based spending decisions.
Quarter and full-year performance
CEO and Managing Director Srinivas Pallia said geopolitical and policy disruptions “have become the new normal,” but noted that “IT spending has shown resilience,” with cloud, data, and AI continuing to attract investment. Against that backdrop, he reported that Wipro’s IT services revenue in Q4 was $2.65 billion in constant currency, up 0.2% sequentially and down 0.2% year-over-year. Operating margin was 17.3%, down 30 basis points sequentially.
Chief Financial Officer Aparna Iyer added that Q4 IT services revenue increased 0.6% in reported currency, while maintaining that margins stayed in a “narrow band” even after absorbing “two incremental months of DTS Harman” and implementing salary increases effective March 1.
Bookings and large deals
Pallia reported Q4 order bookings of $3.5 billion, up 3.2% sequentially but down 13.9% year-over-year. He said the company signed 14 large deals totaling $1.4 billion during the quarter.
He also pointed to momentum in Asia Pacific, Middle East and Africa (APMEA), citing a strategic deal with the Olam Group that he said is “expected to exceed $1 billion in contract value” with a “committed spend of $800 million.” Pallia described it as one of Wipro’s largest engagements to date in APMEA.
In addition to regional wins, Pallia highlighted two examples of engagements tied to AI and engineering services:
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A “leading global technology company” engaged Wipro to “run and improve its frontier AI models,” covering training, governance, evaluation, and domain-specific validation through a specialized global delivery platform, with the goal of making models “more accurate, reliable and safe” at scale.
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A “leading global semiconductor company” selected Wipro for engineering services spanning product development through performance testing, aimed at “faster resolution management, higher yield, and improved governance with AI-driven analytics and automation.”
Regional and sector trends
Management pointed to mixed performance across market units, with particular weakness in the Americas 2 business. In Q4, Pallia said Americas 1 delivered sequential and year-over-year growth driven by consumer, technology, and communications, while healthcare was impacted by “seasonality and policy changes.” Americas 2 declined both sequentially and year-over-year, which he attributed to BFSI issues including “delayed ramp-ups on some large deals that were closed earlier this year” and “certain client-specific issues.” Europe grew sequentially and was flat year-over-year, with “good traction” in the U.K. BFSI market and “strong deal momentum in Germany.” APMEA grew sequentially and year-over-year, driven by Southeast Asia.
Iyer quantified the constant-currency regional performance as:
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Americas 1: +0.3% sequentially, +2.9% year-over-year
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Americas 2: -2.6% sequentially, -6.7% year-over-year
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Europe: +2.0% sequentially, flat year-over-year
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APMEA: +3.1% sequentially, +8.8% year-over-year
By sector, Iyer said BFSI declined 1.3% sequentially and 0.5% year-over-year, while technology and communication grew 5.3% sequentially and 10.4% year-over-year.
On the repeated analyst questions about delayed deal ramp-ups in Americas 2 BFSI, Pallia said the softness was tied to a combination of “client-specific issue and delay in ramp-ups.” He characterized the delay as “very client specific,” saying the opportunity was expected to emerge “sooner than later.” He later added that for the particular client issue in question, “it will end in quarter one.” Iyer also said the client-specific issue in Americas 2 had an impact in both Q4 and Q1, “and there won’t be a continuing impact of that going forward.”
AI strategy and investment focus
Pallia said Wipro is making a “deliberate strategic pivot” as “intelligence becomes industrialized and widely accessible.” He described the launch of a dedicated AI-native business and platforms unit aimed at expanding beyond a services-only model toward “services-as-a-software.” The unit is intended to accelerate “enterprise-grade agentic AI solutions” and incubate AI-led businesses through an “invest build partner approach,” alongside collaboration with Wipro Ventures and ecosystem partners.
In Q&A, Pallia said AI is “a central strategy for Wipro,” referencing “Wipro Intelligence” and the firm’s delivery platforms, including WINGS for run-and-operate and WEGA for software development lifecycle work. He said Wipro has seen “very good traction” and that clients are focused on security, reliability, and responsible guardrails, as well as productivity benefits on existing and new engagements.
Guidance, cash flow, and buyback
For Q1, management guided to IT services revenue of $2.597 billion to $2.651 billion, which Iyer said implies -2% to 0% sequential growth in constant currency. Pallia reiterated the same constant-currency growth range.
Iyer said Q1 faces headwinds from “two months of salary increase” and the dynamics of large-deal ramps, and cautioned that “volatility could be there in our quarterly performance,” while still aiming to keep margins in a narrow band in the medium term. She also pointed to planned investments, including around “Wipro Intelligence,” as an area that “will need a lot of investment.”
On cash flow and balance sheet metrics, Iyer said operating cash flow for FY 2026 was 112.6% of net income, gross cash including investments totaled $5.9 billion, and the accounting yield on average investments held in India was 7.3%. She also said the effective tax rate was 23.5%. Regarding a quarterly increase in unbilled revenue, Iyer described it as “more a quarterly aberration” that “should correct itself,” while noting DSO remained “flattish” year-over-year.
The company also announced a shareholder return action. Iyer said Wipro’s board approved a buyback of INR 15,000 crores at INR 250 per share, which she called “the largest buyback that Wipro has announced,” and said it is expected to repurchase 5.7% of paid-up capital. The buyback is expected to complete in Q1 FY 2027, subject to shareholder approval. Iyer added that Wipro distributed $1.3 billion in dividends in FY 2026, bringing the total payout ratio for the three-year block ending FY 2026 to about 88%, above the company’s stated minimum threshold of 70% under its capital allocation policy.
On client concentration questions, Iyer acknowledged sequential volatility in the top client but said the relationship remains strong and that, year-over-year, the top client was “largely flattish” in constant currency, while top five grew 0.2% and top 10 grew 1.5% year-over-year in constant currency.
About Wipro (NYSE:WIT)
Wipro Limited (NYSE: WIT) is an Indian multinational corporation that provides information technology, consulting and business process services. Headquartered in Bengaluru, India, the company traces its origins to 1945 when it was founded as Western India Vegetable Products and later diversified into technology and IT services. Today Wipro positions itself as a provider of enterprise IT solutions and digital transformation services for large and mid-sized organizations across multiple industries.
The company’s service portfolio includes application development and maintenance, cloud and infrastructure services, data analytics and AI, cybersecurity, digital consulting, product engineering and research and development, as well as business process services.
