Wipro shares fall 3.6%: Key takeaways beyond ₹15,000 crore buyback from Q4 FY26

IT major Wipro on Thursday reported a consolidated net profit of ₹3,501.8 crore for the March quarter of FY26, down 1.89% from ₹3,569.6 crore a year ago.

The dip in profit comes against the backdrop of a challenging macroeconomic environment, which Wipro CEO and MD Srini Pallia described during the earnings call as the "new normal" marked by geopolitical and policy disruptions, though he noted that overall IT spending has shown resilience.

Wipro’s board has also approved a mega ₹15,000 crore share repurchase programme, proposing to buy back more than 5% of its equity, or up to 60 crore shares, from shareholders at ₹250 per share.

The share buyback price reflects a premium of 19 per cent over Thursday's closing price of ₹210.26 per share on the NSE.

Other key metrics

The Bengaluru-headquartered firm’s revenue rose 7.6% to ₹24,236.3 crore in Q4 FY26, as compared to ₹22,504.2 crore in Q4 FY25.

Quarter-on-quarter, Wipro’s profit and revenue rose by 12.2% and 2.8%, respectively.

The company's flagship IT Services segment recorded a revenue of $2,651 million in Q4 FY26, marking a sequential uptick of 0.6% and a year-on-year (YoY) rise of 2.1%.

For the quarter ending June 30, 2026, Wipro expects revenue from its IT services business to be in the range of $2,597-$2,651 million. This translates to a sequential guidance of (-) 2.0% to 0% in constant currency (CC) terms.

Addressing the muted guidance for the upcoming quarter, Pallia attributed the softness to a specific client issue in the Americas and delayed ramp-ups on a deal. He also noted that Q1 has traditionally been a weaker quarter for Wipro due to seasonality.

What leading analysts said

Most analysts note that buybacks can provide near-term support to the stock, but guidance implies continued revenue contraction in the near term.

Morgan Stanley

Morgan Stanley said both Q4 FY26 organic revenue growth and Q1 FY27 revenue guidance fell short of expectations. While resilient margins and strong capital allocation may limit downside, it expects Wipro’s valuation multiple to remain at a discount relative to peers.

Nomura

Analysts at Nomura have termed the quarter a “mixed bag".

The investment firm noted that while guidance for Q1 FY27 missed estimates, deal wins remain steady. It expects margins to stay within a tight band despite near-term headwinds. Nomura also highlighted that the large buyback brings Wipro’s capital allocation in line with peers and raised its FY27-28 EPS estimates by 1-2%, with dividend yield likely to support the stock.

JPMorgan

JPMorgan has described the quarter as mixed, with a revenue miss but a margin beat. The investment firm flagged a client-specific issue in the US BFSI segment and delays in deal ramp-ups as near-term headwinds. It also cautioned that margin support from provision write-backs may not be sustainable, even as the company continues to target a 17–17.5% margin band.

CLSA

CLSA has cited “more negatives than positives".

Key concerns include continued revenue leakage, weak deal wins on a year-on-year basis, delayed ramp-ups, and slowing momentum in the BFSI vertical. CLSA also noted that FY26 marks the third consecutive year of negative organic constant currency revenue growth. While margins remained stable and the buyback was a positive, it cut FY27 growth estimates but raised margin assumptions.

HSBC

Analysts at HSBC note that the expectations of a recovery are fading after another weak quarter and outlook. While the buyback may support the stock in the near term, there are concerns regarding ongoing underperformance and AI-related uncertainties.

Goldman Sachs

It has flagged a sharper-than-expected revenue decline in Q4 and said guidance points to continued contraction in the near term. Goldman expects FY27 to mark the fourth consecutive year of revenue decline and has cut its revenue and earnings estimates post-results. It also sees a neutral read-across for the broader IT sector.

Overall takeaway

Analysts broadly agree that while margins and capital allocation (via the buyback) offer some support, weak revenue growth, delayed deal ramp-ups, and an uncertain demand environment continue to weigh on sentiment around Wipro.