Wipro sees flat to negative growth in Q1FY27; full year revenue decline persists

Bengaluru-headquartered Wipro reported a third consecutive year of revenue decline in FY26. For Q4FY26, the company posted revenue of $2.6 billion, up 0.6% sequentially. However, for the full year, its IT services revenue stood at $10.4 billion, marking a decline of 0.3% year-on-year.

That said, the company saw strong momentum in deal wins. Large-deal bookings rose 45.4% year-on-year to $7.8 billion, while total bookings increased 14% to $16.4 billion. Profitability also improved during the year.

“Our full-year operating margin stands at 17.2%, an expansion of 15 basis points year-on-year. We maintained margins within a narrow band even after absorbing two incremental months of DTS HARMAN. We also rolled out salary increases effective March 1,” said Aparna Iyer, CFO, during the company’s earnings call.

For Q1FY27, Wipro expects IT services revenue to be in the range of $2,597 million to $2,651 million, implying a sequential growth of -2% to 0% in constant currency terms.

Commenting on the weak outlook, CEO and MD Srinivas Pallia said it is driven by both client-specific and sectoral challenges, particularly in the BFSI segment, where delays in ramp-up of large deals have weighed on growth, even as the pipeline remains strong.

“From a broader technology spending perspective, there are two key areas clients are focusing on. One is AI—it is front and centre of what clients are trying to achieve, not just in terms of productivity and experience, but also in creating new business opportunities. Tech budgets, as far as we are concerned, remain strong across industries and markets,” he said during a media briefing.

While the company expects headwinds from two months of salary hikes and volatility in a few large deals to impact Q1FY27, it plans to continue investing, particularly in Wipro Intelligence.

“We may see some quarter-on-quarter volatility, but our endeavour is to drive productivity and cost optimisation over the medium term, and deliver on the promise of AI in improving execution of fixed-price programmes. We will also continue to optimise overheads,” Iyer added.