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

Wipro (NYSE:WIT) announced its earnings results on Thursday. The information technology services provider reported $0.03 EPS for the quarter, missing the consensus estimate of $0.04 by ($0.01), Zacks reports. Wipro had a return on equity of 15.26% and a net margin of 13.58%. The business had revenue of $2.58 billion for the quarter, compared to the consensus estimate of $2.58 billion.

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

• Q2 IT services revenue was flat sequentially at $2.61 billion, up 0.6% year over year in constant currency. Growth was led by APMEA, Europe, consumer, and BFSI, while Americas 1 and healthcare declined.
• Operating margin expanded 50 basis points sequentially to 16.5%, supported by operational improvements and rupee depreciation, despite continued investments in AI and other growth initiatives. Operating cash flow remained strong at 166% of net income.
• Wipro guided for Q3 constant-currency revenue growth of -1.5% to +0.5%, reflecting seasonal furloughs and fewer working days. U.S. healthcare remains pressured by policy changes, slower membership growth, and tighter discretionary spending.
• Management reported a robust AI-led pipeline, including consulting-led transformations, industry-specific small-language-model deployments, and AI-native platforms. The company expects AI services spanning data centers, foundry services, physical AI, and design-to-manufacturing to create new growth opportunities.
• Q2 total contract value was $2.6 billion, with nine large deals, and management said two additional deals slipped because of delayed paperwork rather than lost demand. These deals, along with a strong Q3 pipeline, could support Q4 revenue conversion.

Wipro Trading Up 4.5%

WIT stock traded up $0.09 during mid-day trading on Friday, hitting $1.96. The stock had a trading volume of 9,949,234 shares, compared to its average volume of 9,192,584. Wipro has a 52 week low of $1.59 and a 52 week high of $3.09. The firm has a market capitalization of $19.34 billion, a P/E ratio of 15.04, a P/E/G ratio of 4.27 and a beta of 0.97. The firm has a fifty day simple moving average of $1.78 and a 200 day simple moving average of $1.96.

More Wipro News

Here are the key news stories impacting Wipro this week:

• Positive Sentiment: Wipro reported second-quarter operating margin of 16.5%, reflecting an expansion in profitability. IT-services revenue was reported at approximately $2.61 billion, a constructive result for investors focused on efficiency and margins. Wipro: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Management continues to invest in artificial intelligence, positioning AI-related services as a potential longer-term growth driver despite currently sluggish demand. The margin performance and AI strategy provide support for the stock’s valuation. Wipro Earnings Call: AI Bets Amid Sluggish Growth
• Neutral Sentiment: Second-quarter revenue was approximately $2.58 billion, broadly matching analyst expectations. However, adjusted earnings of $0.03 per share missed the consensus estimate of $0.04, limiting the positive impact of the in-line revenue result. Wipro Announces Results for the Quarter Ended September 30, 2026
• Negative Sentiment: Wipro’s third-quarter revenue guidance was below market forecasts. The weaker outlook suggests that near-term demand and growth remain pressured, which has caused shares to decline in reaction to the earnings update despite the company’s in-line quarterly revenue and improved margin. Wipro Shares Decline as Q3 Revenue Guidance Falls Below Forecasts
• Negative Sentiment: DBS maintained a Sell rating on Wipro, underscoring investor concerns about limited growth momentum and the risk that AI investments may take time to translate into material revenue gains. DBS Remains a Sell on Wipro

Analyst Ratings Changes

WIT has been the topic of a number of analyst reports. CLSA downgraded Wipro from a “hold” rating to an “underperform” rating in a research report on Wednesday, August 19th. JPMorgan Chase & Co. lowered Wipro from a “neutral” rating to an “underweight” rating and lowered their price objective for the stock from $2.20 to $1.70 in a research note on Wednesday, June 24th. Finally, Weiss Ratings cut Wipro from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, October 2nd. Four research analysts have rated the stock with a Sell rating. According to MarketBeat.com, Wipro has a consensus rating of “Strong Sell” and an average target price 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.