Wipro (NYSE:WIT) Releases Quarterly Earnings Results, Meets Estimates

Wipro (NYSE:WIT) released its quarterly earnings results on Thursday. The information technology services provider reported $0.04 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.04, Zacks reports. Wipro had a return on equity of 15.35% and a net margin of 14.61%.

Here are the key takeaways from Wipro’s conference call:

• Wipro guided Q1 IT services revenue of -2% to 0% sequentially in constant currency
• The board approved a INR 15,000 crore buyback (INR 250/share) covering ~5.7% of paid-up capital, supported by a strong cash position of $5.9 billion and operating cash flow at 112.6% of net income.
• Management is pursuing an AI-led strategy—launching an AI-Native Business & Platforms Unit and closing several strategic AI and engineering deals (including a >$1bn Olam engagement and assignments to run frontier AI models), aiming to build service-as-software growth engines.
• Q4 IT services revenue was $2.65bn (flat sequentially, -0.2% YoY cc) and FY services revenue fell 1.6% cc, while Q4 operating margin slipped to 17.3% (down 30 bps sequentially), with margin pressure from recent acquisitions and salary increases.

Wipro Stock Down 1.5%

WIT opened at $2.24 on Thursday. The firm has a market cap of $23.41 billion, a P/E ratio of 16.11, a P/E/G ratio of 6.07 and a beta of 1.06. Wipro has a 52 week low of $2.05 and a 52 week high of $3.13. The business has a fifty day simple moving average of $2.25 and a 200-day simple moving average of $2.56.

Institutional Investors Weigh In On Wipro

A number of hedge funds have recently added to or reduced their stakes in the business. Morgan Stanley raised its position in Wipro by 65.0% in the 4th quarter. Morgan Stanley now owns 48,531,368 shares of the information technology services provider’s stock valued at $137,829,000 after purchasing an additional 19,114,904 shares in the last quarter. State Street Corp grew its holdings in Wipro by 0.8% during the 4th quarter. State Street Corp now owns 23,861,012 shares of the information technology services provider’s stock worth $67,765,000 after acquiring an additional 179,034 shares in the last quarter. Millennium Management LLC increased its position in shares of Wipro by 25.9% in the 3rd quarter. Millennium Management LLC now owns 21,305,291 shares of the information technology services provider’s stock valued at $56,033,000 after purchasing an additional 4,382,854 shares during the last quarter. Defiance ETFs LLC purchased a new stake in shares of Wipro in the 4th quarter valued at approximately $39,525,000. Finally, UBS Group AG raised its holdings in shares of Wipro by 165.0% in the 3rd quarter. UBS Group AG now owns 13,044,840 shares of the information technology services provider’s stock valued at $34,308,000 after purchasing an additional 8,122,275 shares in the last quarter. 2.36% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Separately, Morgan Stanley cut shares of Wipro to an “underweight” rating in a research report on Monday, January 19th. Two investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Reduce”.

About Wipro

Wipro Limited (NYSE: WIT) is an Indian multinational corporation that provides information technology, consulting and business process services. Headquartered in Bengaluru, India, the company traces its origins to 1945 when it was founded as Western India Vegetable Products and later diversified into technology and IT services. Today Wipro positions itself as a provider of enterprise IT solutions and digital transformation services for large and mid-sized organizations across multiple industries.

The company’s service portfolio includes application development and maintenance, cloud and infrastructure services, data analytics and AI, cybersecurity, digital consulting, product engineering and research and development, as well as business process services.

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