Wipro share price drops 5% on sharp cut in revenue guidance; stock trades 28% lower from 52-week high levels

Shares of Wipro opened nearly 5% lower on Thursday after posting a weak set of numbe₹for Q4FY26. The shares traded at ₹239 apiece on the NSE at 9:20 am. The shares are currently trading 28% lower than the record high levels touched in February 2025.

Wipro on Wednesday reported a 25.9% year-on-year rise in consolidated net profit for the March quarter to ₹3,569.6 crore, but warned of a weak quarter ahead with up to 3.5% expected drop in IT services revenue for Q1FY26, amid global uncertainties. The company's revenues for Q4 came in at ₹22,504.2 crore, a marginal increase of 1.3% from ₹22,208.3 crore in Q4 FY24.

The Americas 1 strategic market unit contributed 32.8 % of revenue in Q4, growing 6 % year-over-year in cc. Europe, contributing 26.1 % of Q4 revenue, experienced a 6.9 % decline year-over-year in constant currency terms.

Wipro CEO and MD Srini Pallia said clients remain cautious in the face of macroeconomic uncertainty, but Wipro is focused on partnering closely with them while keeping its gaze on consistent and profitable growth.

The real disappointment for investors came from the sharp cuts in the revenue guidance for the upcoming quarter. For Q1FY26, the firm sees its IT services business revenue between USD 2,505 million and USD 2,557 million, a drop of 1.5-3.5 % in constant currency (cc) terms on a sequential basis.

"The guidance is baked into all the uncertainties that we see, but I think the most important thing is what's happening in the macro environment. Today, in addition to the geopolitics this year, macro environment in the context of tariffs has created a lot of uncertainties to our clients, and this uncertainty varies from country to country, market to market, secto₹by sector," Pallia said during the company's earnings conference.

Over the past weeks, US' on-now, off-now tariff moves have roiled global markets and many IT analysts fear that a bitter trade war and a possible slowdown in the American economy could take a toll on IT decision-making or curtail tech demand and spending from specific verticals.

The USD 280-billion IT services company derives a large chunk of its revenue from US clients.

Pallia acknowledged that the recent tariff announcements have added to the global uncertainties.