Revenue from operations, meanwhile, increased 8% YoY to Rs 24,236 crore. However, the core IT services segment showed limited traction. Revenue stood at $2.65 billion, growing just 0.6% quarter-on-quarter and 2.1% year-on-year. On a constant currency basis, IT services revenue rose 0.2% sequentially but declined 0.2% annually, highlighting weak underlying demand.
Wipro Q4 results showed a sequential rise in profit, which was up 12% quarter-on-quarter. IT services operating margin came in at 17.3%, declining 0.3% sequentially and 0.2% YoY, indicating continued cost pressures and investment-led drag.
What are experts saying?
Wall Street major Morgan Stanley maintained an Underweight rating and cut its Wipro share price target to Rs 192 from Rs 242, a downside of nearly 9%. The brokerage flagged weak fourth-quarter performance, with revenue declining 1.3% QoQ in constant currency. It also pointed to a 1.6% YoY decline in FY26 revenue, reflecting underperformance versus peers. The outlook remains subdued, with 1QFY27 guidance indicating a further 1.5% to 2% QoQ decline.
While margins have held up so far, they are expected to fall short of the 17% to 17.5% band in FY27. The firm also noted the Rs 15,000 crore buyback as supportive of shareholder returns but has lowered its revenue growth and margin estimates for FY27 and FY28, expecting continued relative underperformance and a valuation discount to peers.
Goldman Sachs reiterated its Sell rating with a target price of Rs 187 on Wipro shares. It highlighted a weaker-than-expected Q4 performance and said the guidance points to continued revenue contraction in the near term. The brokerage expects FY27 to mark the fourth consecutive year of revenue decline for Wipro and has cut its revenue and earnings estimates following the results. It also noted that the commentary has a neutral read-across for the broader IT sector.
Nomura retained a more constructive stance with a Buy rating and raised its Wipro share price target to Rs 250 from Rs 240, describing Q4FY26 as a mixed quarter. Deal wins remained steady, with total bookings of $3.5 billion in Q4, down 13% YoY, including large deals worth $1.4 billion, down 18% YoY. The pipeline continues to be driven by vendor consolidation, cost optimisation and increasing demand for AI-led transformation. Nomura believes timely execution of these deals will be key to improving growth, and it expects USD revenue to grow 0.9% in FY27 and 4% in FY28.
Motilal Oswal maintained a Neutral rating on Wipro with a target price of Rs 215, implying a modest upside of around 2%. The brokerage expects constant currency revenue to grow about 1.0% YoY in FY27, factoring in a weak start to the year with 1QFY27 revenue likely to decline around 1.0% QoQ. It highlighted ongoing challenges such as delays in deal ramp-ups, a decline in contribution from top clients and weakness across key verticals. The firm also sees limited scope for margin expansion due to wage hikes, the ramp-up of lower-margin deals and continued investments in AI. It has largely kept its estimates unchanged.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
