The Wipro ADRs ended 3% lower at $2.73 on Wednesday, April 16, after the company announced its Q4 results. They plunged as much as 6.7%, hitting an intraday low of $2.63 before recovering slightly. The selloff was primarily on the back of the weak outlook for the upcoming quarter. Wipro has guided to a weak revenue guidance for the April–June quarter.
On the Indian stock exchanges, Wipro’s shares price had closed 1.39% higher at Rs 247.5 on the BSE before the results were announced.
Here are four key reasons behind the fall in Wipro’s ADRs:
1. Weak revenue guidance for Q1 FY26
Wipro’s guidance for the April-June 2025 quarter remains muted. The company expects IT services revenue to decline by 1.5% to 3.5% in constant currency terms, translating to a revenue range of $2,505 million to $2,557 million. This comes after a flat guidance in the previous quarter.
2. Impact of global tariff worries
The management pointed to increasing global trade uncertainties especially tariff-related tensions as one of the key reasons for muted client spending. Wipro CEO Srini Pallia said, “Recent tariff announcements have only added to the uncertain demand environment.” With fears of inflation and a potential slowdown in the US economy, clients are taking a cautious approach, delaying decisions on tech investments.
3. Muted growth in core IT services
Although Wipro posted a 26% year-on-year (YoY) jump in net profit at Rs 3,570 crore, its core IT services business remained under pressure. The segment saw a 1.2% sequential and 2.3% annual decline in revenue. The operating margin in this segment stayed flat QoQ at 17.5%.
4. Uncertain macro environment
The broader outlook for India’s $283 billion IT industry remains cloudy. Like its bigger rival TCS, Wipro flagged concerns about slowing demand and client hesitation amid macroeconomic turbulence. While digital transformation remains a priority for clients, projects are being staggered and budgets trimmed.
Deal wins and profit growth
Despite the weak outlook, Wipro did post some bright spots in its Q4 numbers. The company reported a 6.6% sequential rise in net profit, beating analysts expectations. It also saw a growth in large deal bookings, which stood at $1.76 billion, a sharp 48.5% jump year-on-year. Total bookings for the quarter came in at $3.96 billion, up 13.4% QoQ.
Wipro’s headcount also remained stable, rising slightly to 2,33,346 employees, compared to 2,32,614 in the same period last year.