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

Wipro (NYSE:WIT) announced its quarterly earnings results on Thursday. The information technology services provider reported $0.03 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.03, Zacks reports. Wipro had a net margin of 14.25% and a return on equity of 14.97%. The firm had revenue of $2.54 billion for the quarter, compared to the consensus estimate of $2.60 billion.

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 Stock Performance

WIT stock opened at $1.86 on Friday. The firm has a market cap of $19.54 billion, a PE ratio of 13.32, a P/E/G ratio of 3.96 and a beta of 0.97. Wipro has a one year low of $1.80 and a one year high of $3.12. The firm’s fifty day moving average is $2.07 and its 200 day moving average is $2.27.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada lifted its position in Wipro by 19.8% in the first quarter. Royal Bank of Canada now owns 120,431 shares of the information technology services provider’s stock valued at $369,000 after buying an additional 19,901 shares during the last quarter. NewEdge Advisors LLC boosted its stake in shares of Wipro by 87.0% in the 1st quarter. NewEdge Advisors LLC now owns 270,702 shares of the information technology services provider’s stock valued at $828,000 after buying an additional 125,967 shares during the period. Goldman Sachs Group Inc. grew its holdings in Wipro by 22.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 10,354,002 shares of the information technology services provider’s stock worth $31,683,000 after acquiring an additional 1,864,943 shares in the last quarter. Jane Street Group LLC increased its holdings in Wipro by 184.9% in the first quarter. Jane Street Group LLC now owns 224,438 shares of the information technology services provider’s stock valued at $687,000 after buying an additional 145,658 shares during the last quarter. Finally, Geode Capital Management LLC lifted its stake in Wipro by 14.3% during the second quarter. Geode Capital Management LLC now owns 107,021 shares of the information technology services provider’s stock worth $323,000 after purchasing an additional 13,363 shares during the last quarter. Hedge funds and other institutional investors own 2.36% of the company’s stock.

Analyst Ratings Changes

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

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.