Wipro (NYSE:WIT) Issues Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• Wipro missed quarterly earnings estimates, reporting $0.03 EPS versus the $0.04 consensus. IT services revenue was flat sequentially and increased 0.6% year over year in constant currency to $2.61 billion.
• Operating margin improved to 16.5%, but Q3 revenue guidance ranges from a 1.5% decline to 0.5% growth sequentially, reflecting seasonality and continued healthcare weakness.
• Bookings fell to $2.6 billion, a 19-quarter low, while analysts have grown more bearish: Wipro carries a “Strong Sell” consensus rating and a $1.70 average price target. Management nevertheless highlighted growing demand for AI-led transformation.

Wipro (NYSE:WIT - Get Free Report) issued its quarterly earnings data on Thursday. The information technology services provider reported $0.03 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.04 by ($0.01), Zacks reports. Wipro had a net margin of 13.93% and a return on equity of 15.40%.

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

• Q2 IT services revenue was flat sequentially and rose 0.6% year over year in constant currency to $2.61 billion. Growth was led by APMEA, Europe, consumer, and BFSI, while Americas I and healthcare remained weak.
• Operating margin improved 50 basis points sequentially to 16.5%, supported by operational improvements, rupee depreciation, and productivity gains from AI-enabled fixed-price programs. Management is targeting a return to its 17%–17.5% sustainable margin range.
• Q3 guidance calls for revenue of $2.571 billion to $2.625 billion, or -1.5% to +0.5% sequential growth in constant currency, due partly to seasonal furloughs and continued healthcare softness.
• Total contract value bookings fell to $2.6 billion, described as a 19-quarter low, although management said several awarded deals were delayed by paperwork and should be signed in Q3. Competitive intensity remains elevated amid vendor consolidation and cost-takeout projects.
• Wipro reported growing demand for AI-led transformation, including agentic AI, AI-native platforms, physical AI, and silicon design. Its AI-native unit now has more than 2,000 engineers, while BFSI, engineering, and mid-market opportunities are showing strong pipeline momentum.

Wipro Stock Performance

Shares of NYSE WIT opened at $1.80 on Thursday. The company has a market capitalization of $17.85 billion, a P/E ratio of 13.85, a price-to-earnings-growth ratio of 4.11 and a beta of 0.97. Wipro has a 52-week low of $1.59 and a 52-week high of $3.09. The company's 50 day moving average price is $1.79 and its 200-day moving average price is $1.97.

Analysts Set New Price Targets

A number of research firms have weighed in on WIT. JPMorgan Chase & Co. cut shares of Wipro from a "neutral" rating to an "underweight" rating and decreased their price target for the company from $2.20 to $1.70 in a research report on Wednesday, June 24th. CLSA downgraded shares of Wipro from a "hold" rating to an "underperform" rating in a research note on Wednesday, August 19th. Finally, Weiss Ratings downgraded shares of Wipro from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, October 2nd. Four investment analysts have rated the stock with a Sell rating. Based on data from MarketBeat.com, the company currently has a consensus rating of "Strong Sell" and an average price target of $1.70.

Wipro Company Profile

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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