Wipro (NYSE:WIT) Announces Earnings Results

Wipro (NYSE:WIT) posted its quarterly earnings results on Thursday. The information technology services provider reported $0.04 earnings per share for the quarter, meeting 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 Performance

Shares of WIT stock opened at $2.24 on Thursday. The stock’s 50-day moving average is $2.25 and its two-hundred day moving average is $2.56. Wipro has a 1 year low of $2.05 and a 1 year high of $3.13. The firm has a market cap of $23.41 billion, a price-to-earnings ratio of 16.11, a PEG ratio of 6.07 and a beta of 1.06.

Wall Street Analyst Weigh In

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

Institutional Trading of Wipro

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

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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