Home / Business and Economy / Wipro Profit Dips Amidst TCS Q4 Triumph
Wipro Profit Dips Amidst TCS Q4 Triumph
17 Apr
Summary
- Wipro's Q4 net profit fell 2%, while TCS saw a 12% profit surge.
- TCS's annual AI revenue surpassed $2.3 billion in Q4 FY26.
- Wipro guides for negative revenue growth, TCS expects higher FY27 international growth.
In the fourth quarter of FY26, Wipro experienced a 2% decline in its consolidated net profit, reporting Rs 3,502 crore, while its revenue from operations increased by 8% year-on-year to Rs 24,236 crore. The company's board approved a significant Rs 15,000 crore share buyback.
Conversely, Tata Consultancy Services (TCS) announced robust financial results, with consolidated net profit climbing 12% year-on-year to Rs 13,718 crore and revenue from operations growing 10% year-on-year to Rs 70,698 crore. TCS's annual AI revenue exceeded $2.3 billion in Q4 FY26, and the company anticipates higher revenue growth in international markets for FY27.
Looking ahead to Q1 FY27, Wipro has provided guidance for a sequential revenue growth of -2% to 0% in constant currency. This forecast accounts for 80 basis points from recent strategic deals. Management attributed the cautious outlook to client-specific issues expected to resolve by the end of Q1.
TCS, however, expressed optimism, noting that Trailing Twelve Months' deal wins increased by 3.5% year-on-year. Despite macroeconomic headwinds, TCS sees sustained customer commitment to technology investments, particularly in modernization, data estate transformation, and cloud migration within the BFSI sector.
Wipro is investing in an AI-Native business unit to accelerate Agentic AI solutions and incubate AI-led businesses. TCS reported strong AI momentum, with management expecting AI to be net-accretive to revenue growth, reflecting a shift from experimentation to scaled deployment.
In terms of deal wins for Q4 FY26, Wipro secured deals worth $3.5 billion, a 13% year-on-year decrease. These wins were primarily in vendor consolidation, cost optimization, and AI-led transformation. TCS reported a total contract value (TCV) of $12 billion, including three mega deals across BFSI and retail segments.
Regarding share price performance over the last 12 months, Wipro's stock has declined 14%, while TCS's stock price has fallen 22%. In the past month, Wipro's shares gained 6.4%, and TCS's shares increased by 8%.
