Wipro Ltd., India's fourth-largest IT services company, reported a 26% year-on-year increase in its fourth-quarter profit to Rs 3,569.6 crore, despite a challenging macroeconomic environment. The company's revenue for the quarter stood at Rs 22,504.2 crore, marking a slight increase from the previous year's Rs 22,208.3 crore. However, Wipro's guidance for the first quarter of FY26 indicates a projected revenue decline between 1.5% and 3.5% in constant currency terms, reflecting ongoing uncertainties related to tariffs and client spending. Following the announcement of these results, Wipro's shares experienced a significant drop, falling by as much as 6% in early trading. This decline was attributed to the company's weak guidance and the broader market's reaction to the tech sector's performance, influenced by a sell-off in U.S. tech stocks. Brokerages responded by downgrading Wipro's stock, with Nuvama Institutional Equities moving its rating to 'Hold' and reducing its target price to Rs 260 from Rs 300. The IT sector as a whole faced pressure, with the Nifty IT index dropping over 2% amid concerns over global economic conditions and tariff-related uncertainties. Wipro's management highlighted the impact of these factors on client behavior, noting a pause in large transformation projects and a shift towards cost-focused deals. Despite these challenges, Wipro reported an 83% quarter-on-quarter surge in large deals and emphasized a strong deal pipeline moving forward.