Wipro Limited has provided revenue guidance for Q4 FY26 while reporting strong bookings performance in Q3, alongside declaring an interim dividend of ₹6 per equity share. The IT services major's latest updates reflect cautious optimism about near-term business prospects while maintaining its commitment to shareholder returns despite facing operational challenges.

Q4 FY26 Revenue Guidance and Q3 Bookings

Wipro has set its IT services revenue guidance for Q4 FY26 in the range of $2,635 million to $2,688 million, indicating management's expectations for the upcoming quarter. The company also reported total bookings of $3,335 million for Q3, demonstrating continued client engagement and deal closure capabilities.

The revenue guidance range suggests a flat to modest growth trajectory, with the lower end matching the current quarter's IT services revenue of $2,635 million.

Q4 Margin Outlook

During the earnings press conference, a company executive stated that the goal for Q4 is to keep margins in the same range achieved in recent quarters. This guidance indicates management's focus on maintaining operational efficiency and profitability levels despite ongoing market challenges.

Interim Dividend Declaration

Wipro's Board maintained their dividend commitment by approving an interim dividend of ₹6 per equity share during their meeting held on January 15-16, demonstrating the company's focus on consistent shareholder returns.

In the past 12 months, Wipro has declared total equity dividends amounting to ₹11 per share, resulting in a dividend yield of 4.11% at the current share price of ₹267.60.

Q3 Financial Performance

The company's latest quarterly results show challenging performance with revenue growth offset by substantial margin pressures. Wipro posted revenue of ₹23,550.00 crore against market estimates of ₹23,580.00 crore, while net profit dropped to ₹3,120.00 crore from the previous quarter's ₹3,250.00 crore.

IT Services Segment Performance

The core IT services segment continues to face headwinds with revenue of $2,635.00 million, showing modest growth patterns. The Q3 total bookings of $3,335 million indicate a healthy pipeline for future revenue conversion.

The constant currency metrics highlight persistent pricing and volume challenges in major markets, while the strong bookings performance provides a foundation for future growth. The Q4 FY26 guidance range of $2,635-2,688 million reflects management's cautious approach amid ongoing market uncertainties.

Wipro shares gained significant momentum ahead of its December quarter results, rising 3.7% intraday to hit a high of ₹269.80 on the BSE. The rally reflects investor optimism as the IT major prepares to announce its Q3 earnings, with the market watching for updates on margins, deal wins, and the impact of recent acquisitions.

Brokerage Expectations for Q3FY26

According to an average of estimates from six brokerages, Wipro's financial performance for Q3FY26 is expected to show modest growth amid challenging market conditions.

The subdued growth expectations reflect cautious client spending patterns and challenging macroeconomic conditions affecting the IT services sector.

Sequential Growth Outlook

Brokerages expect sequential growth to remain sluggish, with IT services revenue projected to grow between 0.5% and 1.2% quarter-on-quarter in constant currency terms. The growth is expected to be supported by contributions from recent acquisitions, particularly the Harman integration.

However, while the Harman acquisition is expected to provide a one-month revenue boost this quarter, it is also likely to dilute near-term margins due to integration costs and ramp-up expenses.

Detailed Brokerage Projections

HSBC projects around 0.5% constant currency growth, translating to a 1.2% sequential increase in dollar revenue. The brokerage has flagged a 30 basis point currency headwind and warned of subdued margins due to furloughs and integration costs.

Centrum Broking sees 1.2% quarter-on-quarter growth in constant currency, including 0.5% organic growth and 0.7% from Harman. The brokerage expects EBIT margins to decline by 22 basis points sequentially, largely due to the ramp-up costs of large deals.

Nomura echoed similar expectations, projecting 0.5% revenue growth in constant currency and a modest 20 basis points drop in margins, partially offset by currency gains. Nuvama anticipates similar revenue growth and estimates a 1% contribution from Harman integration, but expects margins to remain flat on a sequential basis, citing ongoing integration-related costs.

Key Focus Areas for Investors

As Wipro prepares to release its earnings, investors will be looking for several key indicators:

• Forward-looking guidance on deal momentum and pipeline strength
• Cost optimization initiatives and their impact on profitability
• Clarity on the margin trajectory amid ongoing macro pressures
• Progress on integration of recent acquisitions, particularly Harman
• Management commentary on client spending patterns and demand outlook

The market's attention will be particularly focused on how the company navigates the challenging macroeconomic environment while managing integration costs from recent acquisitions.