Wipro, a leading player in the IT sector, unveiled its earnings for the fourth quarter of the fiscal year, projecting a revenue decline between -3.5% to -1.5% for the first quarter of FY26, which concludes on June 20, 2025. The company’s latest regulatory filing indicates that the revenue from its IT services division is expected to range from $2,505 million to $2,557 million, highlighting the challenges ahead.

Insights from Q4FY25 Performance

In its Q4FY25 report, Wipro provided guidance that reflected a sequential revenue range of -1% to +1% in constant currency terms. The outcomes of this guidance reveal how well the company managed its financial goals amid fluctuating market conditions.

• Key Highlights:
  • Large deal bookings surged by 48.5% year-on-year, reaching $1,763 million.
  • Operating margins increased by 110 basis points year-on-year in Q4, and by 90 basis points for the entire fiscal year.
  • Net income saw a sequential growth of 6.4% in Q4, totaling an annual increase of 18.9%.

Financial Stability Amid Challenges

Aparna Iyer, Wipro’s Chief Financial Officer, emphasized the company’s commitment to maintaining operational excellence in a challenging environment. She noted, "Despite the softening revenue landscape, our focus on execution has led to steady margin expansion. We aim to keep margins within a narrow band in the upcoming quarters." Furthermore, Wipro’s net operating cash flow reached nearly $2 billion for FY25, reflecting 128.2% of its net income.

Strategic Focus and Future Outlook

Srini Pallia, CEO and Managing Director, highlighted two significant mega deals secured in FY25 and the growth in Wipro’s major accounts. He stated, "As we navigate through macroeconomic uncertainties, our emphasis remains on fostering close partnerships with clients while ensuring sustainable and profitable growth." The company’s investment in global talent and enhancement of consulting and AI capabilities signals a strategic focus on long-term growth.

Strong Q4 Results

In terms of profitability, Wipro achieved a remarkable 25.93% increase in quarterly profits, amounting to Rs 3,569.60 crore. The revenue from operations for this quarter stood at Rs 22,504.20 crore, marking a 1.33% rise compared to Rs 22,208.30 crore in the same period last fiscal year.

Market Response

Ahead of the earnings announcement, Wipro’s share price experienced a slight uptick of 1.48%, closing at Rs 247.60 on the National Stock Exchange. This reflects investor confidence in the company’s strategic initiatives and financial performance.

In summary, Wipro’s current fiscal outlook and solid performance indicators suggest a cautious yet optimistic approach as it navigates the complexities of the global IT landscape.