Wipro (NYSE:WIT) Posts Quarterly Earnings Results, Hits Expectations

Wipro (NYSE:WIT) released its quarterly earnings results on Thursday. The information technology services provider reported $0.03 earnings per share for the quarter, hitting the consensus estimate of $0.03, Zacks reports. The business had revenue of $2.54 billion for the quarter, compared to the consensus estimate of $2.60 billion. Wipro had a net margin of 13.93% and a return on equity of 14.80%.

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

• Wipro’s Q1 IT services revenue rose 0.9% year over year in constant currency to $2.61 billion, but declined 1.2% sequentially, while operating margin came in at 16%.
• Management said order bookings were healthy at $3.4 billion, including $1.6 billion of large deal bookings across 13 large deals, and emphasized a strong pipeline in BFSI, technology, communications, and parts of Europe and APMEA.
• The company guided Q2 IT services revenue to -1.5% to +0.5% sequential growth in constant currency, signaling that the demand environment remains soft and decision cycles are still slow.
• Margins were pressured by salary increases, ramp-up costs on prior large deals, and continued AI-related investment, with management saying it aims to return to its 17%–17.5% narrow band over time.
• Wipro highlighted its AI-led strategy, including new wins and offerings through Wipro Intelligence, WINGS, and its AI-Native Business & Platforms Unit, as it positions AI as a structural growth opportunity rather than just a productivity tool.

Wipro Price Performance

Shares of WIT opened at $1.85 on Friday. Wipro has a 1-year low of $1.80 and a 1-year high of $3.09. The firm has a market capitalization of $19.43 billion, a PE ratio of 14.27, a price-to-earnings-growth ratio of 3.98 and a beta of 0.97. The company’s fifty day moving average price is $2.07 and its 200-day moving average price is $2.27.

Analyst Ratings Changes

A number of equities research analysts have issued reports on WIT shares. JPMorgan Chase & Co. lowered shares of Wipro from a “neutral” rating to an “underweight” rating and cut their price objective for the company from $2.20 to $1.70 in a report on Wednesday, June 24th. Weiss Ratings lowered shares of Wipro from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday. One equities research analyst has rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Strong Sell” and an average target price of $1.70.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in WIT. Morgan Stanley grew its position in shares of Wipro by 65.0% in the fourth 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 during the period. State Street Corp boosted its position in shares of 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 valued at $67,765,000 after acquiring an additional 179,034 shares during the last quarter. Millennium Management LLC increased its holdings in shares of Wipro by 25.9% during the 3rd quarter. Millennium Management LLC now owns 21,305,291 shares of the information technology services provider’s stock worth $56,033,000 after buying an additional 4,382,854 shares during the last quarter. Defiance ETFs LLC purchased a new stake in Wipro in the fourth quarter valued at $39,525,000. Finally, UBS Group AG lifted its position in Wipro by 165.0% in the third quarter. UBS Group AG now owns 13,044,840 shares of the information technology services provider’s stock valued at $34,308,000 after buying an additional 8,122,275 shares during the last quarter. Hedge funds and other institutional investors own 2.36% of the company’s stock.

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.