Infosys vs Wipro Q4 FY26

IN

Infosys

Q4 FY26 · Diversified

Infosys reported Q4 FY26 revenue growth of 4.1% YoY in constant currency, with full-year growth of 3.1%. Large deal TCV reached $15 billion for FY26, up 24% YoY, with Q4 at $3.2 billion. Operating margin was 20.9%, down 30bps sequentially due to acquisition amortization and compensation costs, partly offset by currency and Project Maximus benefits. Management guided FY27 revenue growth of 1.5%-3.5% CC and operating margin of 20%-22%, citing AI services momentum but also headwinds from a European manufacturing client ramp-down and onsite mix shift. Key risks include competitive intensity driving productivity pass-throughs and macro uncertainty delaying discretionary spending.

Guidance read

FY27 Revenue Growth 1.5%-3.5% CC: Constant currency revenue growth guidance for FY27, including contributions from recent acquisition Status but excluding others. FY27 Operating Margin 20%-22%: Operating margin guidance for FY27, with headwinds from wage hikes, productivity pass-throughs, and AI investments offset by Project Maximus. Fresher Hiring ~20,000 in FY27: Plan to onboard approximately 20,000 college graduates in FY27, similar to FY26, with flexibility based on demand. Effective Tax Rate 29%-32% for FY27: Expected effective tax rate range for FY27, reflecting normal operations.

Risk read

Key risks include Productivity Pass-Throughs from AI — Competitive intensity may force Infosys to pass AI-driven productivity gains to clients, compressing revenue growth.; European Manufacturing Client Ramp-Down — A large European manufacturing client is reducing spend due to macro challenges and Infosys' decision to walk away from a low-return deal, impacting FY27 growth by 75-100bps.; Onsite Mix Shift Impacting Revenue — Continued reduction in onsite mix (40-50bps exit trajectory) will lower reported revenue growth, partly offset by offshore benefits.; Macro Uncertainty and Tariff Risks — Geopolitical conflicts and trade policy shifts could delay client decision-making and discretionary spending, especially in manufacturing and retail..

Promise ledger

Of 2 tracked promises, management 0 met, 0 close, 2 missed.

WI

Wipro

Q4 FY26 · Diversified

Wipro's Q4 FY26 IT services revenue of $2.65B declined 2% YoY in constant currency, with operating margin contracting 30bps to 17.3%. Sequential growth of 2% was driven by Americas1, Europe, and APMEA, but Americas2 declined sharply due to client-specific issues and delayed ramp-ups in BFSI. Large deal bookings totaled $3.5B, including a $1B+ Olam deal. Management guided Q1 revenue between $2.597B-$2.651B, implying -2% to 0% sequential growth, absorbing wage hikes and deal ramp-up costs. Margins are expected to remain in a narrow band medium-term, but near-term volatility from investments in the new AI-native unit and large deal transitions poses risk. The key risk is sustained weakness in Americas2 BFSI if client issues persist beyond Q1.

Guidance read

Q1 FY27 Revenue Guidance: -2% to 0% sequential CC: IT services revenue expected between $2.597B and $2.651B, reflecting seasonal weakness and client-specific issues. Medium-term margin band maintained: Management aims to keep operating margins in a narrow band despite wage hikes, deal ramp costs, and AI investments. Buyback of ₹15,000 crore at ₹250/share: Largest buyback in Wipro's history, expected to complete in Q1 FY27, subject to shareholder approval.

Risk read

Key risks include Sustained weakness in Americas2 BFSI — Client-specific issues and delayed ramp-ups may persist beyond Q1, impacting growth in a key market unit.; Margin pressure from large deal ramp-ups — New large deals won competitively may have lower initial margins, adding to near-term margin volatility.; Geopolitical and tariff disruptions — Clients in manufacturing and auto sectors are cautious due to tariffs, potentially delaying IT spending decisions..

Promise ledger

Scorecard data is being built as historical quarters are processed.