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

Wipro (NYSE:WIT) announced 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 Trading Up 0.3%

Shares of NYSE WIT opened at $1.80 on Thursday. The firm has a market capitalization of $17.85 billion, a P/E ratio of 13.85, a P/E/G ratio of 4.11 and a beta of 0.97. The firm’s 50-day moving average price is $1.79 and its 200-day moving average price is $1.97. Wipro has a 1-year low of $1.59 and a 1-year high of $3.09.

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. JPMorgan Chase & Co. cut Wipro from a “neutral” rating to an “underweight” rating and decreased their target price for the stock from $2.20 to $1.70 in a research note on Wednesday, June 24th. CLSA lowered Wipro from a “hold” rating to an “underperform” rating in a research note on Wednesday, August 19th. 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. Based on data from MarketBeat, the stock presently has an average 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.