Wipro ADR slips over 2% after Q4 FY26 results; what's driving the move?

Wipro Ltd's American Depository Receipt (ADR) declined in pre-opening trade on the New York Stock Exchange (NYSE) after the IT major reported its fourth quarter (Q4 FY26) results. At last check, the ADR was down 2.20 per cent at $2.22.

The negative reaction comes primarily on the back of a cautious revenue outlook. Wipro has guided for sequential revenue growth in the range of (-)2.0 per cent to 0 per cent in constant currency (CC) terms for the quarter ending June 30, 2026, indicating weak demand visibility in the near term.

On the financial front, the company reported a net income of Rs 3,500 crore for the March 2025 quarter, marking a decline of 1.9 per cent year-on-year (YoY). However, gross revenue rose 7.7 per cent YoY to Rs 24,240 crore.

IT services operating margin came at 17.3 per cent in Q4 FY26, slightly down by 0.2 per cent YoY.

Srini Pallia, CEO and Managing Director, said, "Advancements in AI are reshaping client priorities and creating new opportunities for us to partner more deeply to deliver value-driven outcomes. To strengthen our position in an AI-first world, we are pivoting to a services-as-a-software model through the AI Native Business & Platforms unit. Our strategic deal with the Olam Group further reflects the decisive investments we are making to capture opportunities at scale."

Management noted that cash conversion remained robust during the year.

Aparna Iyer, Chief Financial Officer, said, "We have continued to invest in our clients, capabilities and people and maintained our margins in narrow band. Our cash conversion continues to remain strong with operating cash flows at 112.6 per cent of net income for FY'26. During the year we have returned substantial portion of our cash generated to shareholders in the form of dividend."

She added, "The Board of Directors announced buyback of Rs 15,000 crore at a price of Rs 250, subject to shareholder approval."