TCS and Wipro revenue dip in FY26 despite bigger contracts
Even though TCS and Wipro landed bigger contracts this year, both saw a 2.4% constant-currency decline in annual revenue in FY26: TCS by 2.4% and Wipro by 1.6%.
It's actually Wipro's third year in a row of declining revenue, even as its contract values jumped to $16.4 billion (up 14%), and TCS's hit $40.7 billion (up 3.2%).
Delayed payments and AI price cuts
Analysts point to two main culprits: longer waits for money to come in from deals, and steep discounts as companies compete with AI-powered rivals.
As Everest Group's Akshat Vaid put it, intense pricing pressure from AI is forcing IT firms to slash prices just to stay in the game, which is eating into their earnings.
Plus, contract values for application development and management dropped by 20% earlier this year, showing how tough things have gotten for these tech giants.