Wipro Q4 Results Review: The real truth about Wipro, weak numbers, but will buybacks save or sink it? Let's find out.

News Topical, Digital Desk : A Delhi-based investor named Rajesh (fictitious name) was reviewing his portfolio this morning and stopped short when he spotted Wipro. He had been holding the stock for the past few quarters, but this year's results made him reconsider. He first looked at the earnings figures. The company's dollar revenue for the fourth quarter was $2,651 million. Compared to the previous quarter, this represents a mere 0.6% increase. While it did rise 2.1% year-over-year, this growth isn't very strong.

Rajesh further examined the company's growth for the full year. The data shows that revenue grew -1.6% in FY26 in constant currency terms.

Previously, there was a decline of -2.3% in FY25 and -4.4% in FY24. This marks the third consecutive year of negative growth for the company. This clearly indicates that Wipro is still struggling with growth, even if the pace of decline is slowing. Rajesh then tried to understand the fourth quarter's growth in more detail. The company reported that Q4 growth on a constant currency basis was only 0.2%, while the market had expected 0.4% to 0.5%. Here, an important point emerged: according to UBS estimates, the Harman DTS acquisition contributed approximately 1.5% to growth. This means that if this deal is excluded, the company's organic growth was negative. 

Rajesh now understood the company's real challenge. Management also clearly stated that some client projects had been delayed and some client-specific issues had arisen, which had impacted growth. He then turned his attention to the guidance. The company has provided guidance of -2% to 0% for the first quarter. This clearly means that rapid growth cannot be expected in the coming months. Client issues, particularly in the US business segment—Americas 2—will continue to impact the company. While the company expects two large deals to provide some relief, they will not impact the entire quarter as their contribution will only be for a partial period. Rajesh then focused on margins. The company's operating margin in Q4 was 17.3%, down from 17.6% in the previous quarter. Looking at the overall trend, margin fluctuations are clearly visible—16.4% in Q4 FY24, 16.5% in Q1 FY25, 16.8% in Q2, 17.5% in Q3, 17.5% in Q4, 16.1% in Q1 FY26, 16.7% in Q2, 17.6% in Q3, and now 17.3% in Q4. 

Now, concerns arise about the future. Motilal Oswal estimates that margins could decline to around 16.4% in Q1 FY27. Three major reasons are behind this: the impact of two months' salary hike, the launch of new deals with lower margins, and continued investment in artificial intelligence platforms. However, the company aims to maintain a range of 17% to 17.5% in the medium term. 

Now, Rajesh looks at the deal pipeline, which indicates the company's future. Total contract value (TCV) in Q4 was $3,455 million. 

Looking at previous quarters, it was $4,971 million in Q1 FY26, $2,853 million in Q2, and $3,335 million in Q3. This means the deal flow is consistent, but fluctuating. 

Large deals , however, were valued at $1,440 million in Q4, compared to $2,666 million in Q1, $2,853 million in Q2, and just $871 million in Q3. This shows that even large deals are not stable. 

Now, Rajesh encountered a turning point that changed his mind: a buyback. The company's board approved a buyback of ₹15,000 crore, with a share price of ₹250. This represents a premium of approximately 19% over the market closing price.
Rajesh thought, " If the company is buying its own shares at such a high price, it must be confident in its value." Most importantly, this time the promoters are also participating in the buyback. This is usually rare. In contrast, the promoters did not participate in the Infosys buyback in September 2025.

Now, Rajesh put together all the data . A slight increase in dollar revenue, but weak organic growth. A three-year decline. Margin pressure. Weak guidance. But on the other hand, a large buyback, promoter confidence, and a continued deal pipeline.

Will a buyback really save me?
Then he found the answer himself. A buyback will definitely support the stock in the short term, as it will increase demand and directly benefit investors. But if the company's revenue and profit growth are not strong, the stock will not rise much in the long term solely on the basis of a buyback.

Finally, Rajesh decided to seek the opinion of a leading fundamental analyst. He would not rush to sell the stock. He would hold it. He now clearly understood that Wipro wasn't a strong stock at the moment, but it wasn't completely weak either.

In other words, this was the true reality of Wipro: weak numbers, but buybacks were a strong support. It was now up to the investor to consider this a threat or an opportunity.

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