Wipro (NYSE:WIT) Posts Earnings Results, Meets Expectations

Wipro (NYSE:WIT) announced its quarterly earnings data on Thursday. The information technology services provider reported $0.03 EPS for the quarter, meeting analysts’ consensus estimates of $0.03, Zacks reports. Wipro had a return on equity of 14.97% and a net margin of 14.25%.

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

• Wipro reported Q1 IT services revenue of $2.61 billion, up 0.9% year over year but down 1.2% sequentially, with an operating margin of 16.0%. Management said the quarter was within guidance, though margins were pressured by salary hikes and AI-related investments.
• Management guided Q2 IT services revenue to decline sequentially by -1.5% to +0.5% in constant currency, reflecting continued macro uncertainty and cautious client spending. Americas remained soft, while energy, manufacturing and resources also stayed weak.
• The company said its pipeline remains healthy and highlighted $3.4 billion in order booking for the quarter, including $1.6 billion in large deals. It also pointed to improving momentum in BFSI in the Americas and strong growth in APMEA and parts of Europe.
• Wipro emphasized its shift toward a consulting-led, AI-powered strategy, including new wins tied to Wipro Intelligence, WINGS, and VINX. Management said clients are increasingly seeking AI-enabled operating models that improve productivity, resilience, and cost efficiency.
• Management said margins should recover over the next few quarters as salary impacts fade and deal ramps, aided by traditional levers, utilization improvement, overhead control, and AI-driven productivity. The company also reiterated that it is not giving fresh hiring targets and did not hire freshers in Q1.

Wipro Stock Performance

WIT opened at $1.84 on Thursday. Wipro has a 1 year low of $1.80 and a 1 year high of $3.12. The firm has a 50 day moving average price of $2.08 and a 200 day moving average price of $2.28. The company has a market cap of $19.33 billion, a PE ratio of 13.18, a price-to-earnings-growth ratio of 3.96 and a beta of 0.97.

Institutional Investors Weigh In On Wipro

Institutional investors have recently bought and sold shares of the business. Axxcess Wealth Management LLC acquired a new position in shares of Wipro during the 4th quarter valued at $29,000. Guggenheim Capital LLC acquired a new stake in Wipro in the 4th quarter valued at $29,000. Curi Capital LLC purchased a new position in Wipro in the second quarter valued at about $31,000. CW Advisors LLC acquired a new position in shares of Wipro during the second quarter worth about $39,000. Finally, Blair William & Co. IL acquired a new position in shares of Wipro during the third quarter worth about $39,000. 2.36% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

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

Wipro Company Profile

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.