Wipro (NYSE:WIT – Get Free Report) released its earnings results on Thursday. The information technology services provider reported $0.03 EPS for the quarter, missing analysts’ consensus estimates of $0.04 by ($0.01), Zacks reports. The business had revenue of $2.58 billion during the quarter, compared to the consensus estimate of $2.58 billion. Wipro had a return on equity of 15.40% and a net margin of 13.93%.
Here are the key takeaways from Wipro’s conference call:
- Q2 IT services revenue was flat sequentially at $2.61 billion, up 0.6% year over year in constant currency. Growth was led by APMEA, Europe, consumer, and BFSI, while Americas 1 and healthcare declined.
- Operating margin expanded 50 basis points sequentially to 16.5%, supported by operational improvements and rupee depreciation, despite continued investments in AI and other growth initiatives. Operating cash flow remained strong at 166% of net income.
- Wipro guided for Q3 constant-currency revenue growth of -1.5% to +0.5%, reflecting seasonal furloughs and fewer working days. U.S. healthcare remains pressured by policy changes, slower membership growth, and tighter discretionary spending.
- Management reported a robust AI-led pipeline, including consulting-led transformations, industry-specific small-language-model deployments, and AI-native platforms. The company expects AI services spanning data centers, foundry services, physical AI, and design-to-manufacturing to create new growth opportunities.
- Q2 total contract value was $2.6 billion, with nine large deals, and management said two additional deals slipped because of delayed paperwork rather than lost demand. These deals, along with a strong Q3 pipeline, could support Q4 revenue conversion.
Wipro Stock Up 3.6%
Shares of WIT stock opened at $1.86 on Friday. Wipro has a 52 week low of $1.59 and a 52 week high of $3.09. The company has a market cap of $18.45 billion, a price-to-earnings ratio of 14.35, a price-to-earnings-growth ratio of 4.11 and a beta of 0.97. The firm has a 50 day moving average of $1.78 and a 200-day moving average of $1.97.
Wall Street Analysts Forecast Growth
A number of brokerages have issued reports on WIT. Weiss Ratings cut Wipro from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, October 2nd. CLSA downgraded Wipro from a “hold” rating to an “underperform” rating in a research report on Wednesday, August 19th. Finally, JPMorgan Chase & Co. cut shares of Wipro from a “neutral” rating to an “underweight” rating and cut their price target for the company from $2.20 to $1.70 in a research note on Wednesday, June 24th. Four equities research analysts have rated the stock with a Sell rating. According to MarketBeat.com, the stock currently has a consensus rating of “Strong Sell” and an average price target of $1.70.
View Our Latest Stock Report on Wipro
Wipro News Roundup
Here are the key news stories impacting Wipro this week:
- Positive Sentiment: Wipro reported second-quarter revenue of approximately $2.58 billion, in line with analyst expectations. The company also posted a 13.93% net margin and 15.40% return on equity, supporting the view that profitability remains solid. Wipro announces results for the Quarter ended September 30, 2026
- Positive Sentiment: The earnings call and results release provide investors with updated information on operating performance, margins, and management’s outlook following the quarter ended September 30, 2026. Wipro Q2 2027 Earnings Call Transcript
- Neutral Sentiment: Wipro’s quarterly earnings were broadly in line on revenue, but the company reported earnings per share of $0.03, below the $0.04 consensus estimate. The miss is relatively small but limits the positive impact of the revenue result. Wipro earnings report
- Negative Sentiment: Investors reacted negatively to Wipro’s third-quarter revenue guidance, which fell below forecasts. The weaker outlook appears to be the main pressure point for the stock, overshadowing the in-line second-quarter revenue result. Wipro shares decline as Q3 revenue guidance falls below forecasts
- Negative Sentiment: DBS maintained a “Sell” rating on Wipro, indicating continued analyst concerns about the company’s near-term growth or earnings outlook. DBS remains a Sell on Wipro
About Wipro
Wipro Limited (NYSE:WIT) is an India-based technology services and consulting company that helps businesses modernize operations, develop digital products and manage technology infrastructure. Its services include consulting, application development and management, cloud computing, cybersecurity, data and analytics, artificial intelligence, engineering, and business process services.
The company serves clients across industries including financial services, healthcare, consumer and retail, communications, energy, manufacturing, and technology.
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