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Wipro
(NYSE:WIT)
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Rating:74Outperform
Price Target:
$2.50
▲(32.98% Upside)
Action:Upgraded
Date:10/16/26
The score is driven primarily by solid financial quality (healthy margins, conservative leverage, dependable ROE and strong free-cash-flow conversion) and a supportive valuation (moderate P/E and high dividend yield). Offsetting factors are mixed technicals with the stock still below longer-term moving averages and a cautious near-term outlook from guidance that allows for sequential contraction, despite improving margins and a strong pipeline.
Positive Factors
Strong Cash Generation
Robust cash conversion supports earnings quality and gives Wipro financial flexibility to invest in AI, pursue acquisitions, return capital, and manage demand variability. The substantial cash position also strengthens resilience across the next several quarters.
Negative Factors
Limited Services Growth
Near-flat recent services revenue and guidance allowing sequential contraction point to limited organic momentum over the next few months. This can constrain operating leverage and makes sustained growth dependent on converting the pipeline and improving demand across weaker accounts.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Robust cash conversion supports earnings quality and gives Wipro financial flexibility to invest in AI, pursue acquisitions, return capital, and manage demand variability. The substantial cash position also strengthens resilience across the next several quarters.
Read all positive factors
Wipro (WIT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.01B
Dividend Yield4.23%
Average Volume (3M)9.45M
Price to Earnings (P/E)14.3
Beta (1Y)0.76
Revenue Growth0.38%
EPS Growth-8.33%
CountryUS
Employees240,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)12.77
Shares Outstanding9,905,343,000
10 Day Avg. Volume9,056,778
30 Day Avg. Volume9,450,236
Financial Highlights & Ratios
PEG Ratio49.36
Price to Book (P/B)2.34
Price to Sales (P/S)2.24
P/FCF Ratio15.52
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.05
Enterprise Value/Ebitda0.07
Forecast
1Y Price Target
$1.38Price Target Upside-26.60% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)0.14
Revenue Forecast (FY)$10.45B
Wipro Business Overview & Revenue Model
Company Description
Wipro Limited is a global enterprise that specializes in providing information technology (IT), consulting, and business process services. The company organizes its operations into three distinct divisions: IT Services, IT Products, and India Stat...
How the Company Makes Money
Wipro primarily makes money by delivering services to enterprise and institutional clients under contract, earning fees for professional services and managed services. Its revenue model is largely services-based and typically includes: (1) Project...
Wipro Earnings Call Summary
Earnings Call Date:Oct 15, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 13, 2027
Earnings Call Sentiment Positive
The call was cautiously optimistic. Current growth was modest and several segments, particularly Americas 1, technology and communications, EMR on a year-on-year basis, and healthcare, declined. Q3 guidance also includes sequential revenue contraction of -1.5% to +0.5% because of seasonal furloughs and lower working days. However, margin expanded to 16.5%, cash flow was strong, BFSI and several other markets showed growth, AI-related capabilities and deal activity are expanding, and management described the forward pipeline as extremely strong with potential Q4 benefit from delayed deal signings.Positive Updates
Resilient IT Services Revenue and Margin Expansion
Q2 IT services revenue was $2.61 billion, flat sequentially and up 0.6% year on year in constant currency. Operating margin was 16.5%, an improvement of 0.5% sequentially, supported by operational improvements and rupee depreciation.
Negative Updates
Limited Near-Term Revenue Growth
Q2 IT services revenue was flat sequentially in constant currency and increased only 0.6% year on year in constant currency.
Read all updates
Q2-2027 Updates
Positive
Negative
Resilient IT Services Revenue and Margin Expansion
Q2 IT services revenue was $2.61 billion, flat sequentially and up 0.6% year on year in constant currency. Operating margin was 16.5%, an improvement of 0.5% sequentially, supported by operational improvements and rupee depreciation.
Read all positive updates
Company Guidance
For Q3, Wipro is guiding for IT services revenue of $2.571 billion to $2.625 billion, translating to sequential growth of -1.5% to +0.5% in constant currency; Q3 will remain impacted by seasonal furloughs, expected to be broadly in line with what we saw last year and baked into the guidance, along with lower number of working days. The 2 large deals are in the progress of being signed, management is confident of securing both the deals, and closing them is expected to have a positive impact on the quarter 4 outlook for revenue; health is expected to benefit on account of seasonality in quarter 3, though not to the extent seen in previous years. Management will continuously improve margins, would like to get back to the band as quickly as possible, but is not putting a timeline out there, and is trying to grow the business consistently, sequentially, in terms of the organic growth.Wipro Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
80
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 971.36B | 926.24B | 890.88B | 897.60B | 904.88B | 790.93B |
| Gross Profit | 280.47B | 270.05B | 273.08B | 266.11B | 259.43B | 235.06B |
| EBITDA | 203.54B | 216.14B | 213.78B | 189.54B | 188.88B | 187.51B |
| Net Income | 131.89B | 131.97B | 131.35B | 110.45B | 113.50B | 122.19B |
Balance Sheet | ||||||
| Total Assets | 1.36T | 1.42T | 1.29T | 1.15T | 1.18T | 1.08T |
| Cash, Cash Equivalents and Short-Term Investments | 436.54B | 543.63B | 532.37B | 410.01B | 401.87B | 351.28B |
| Total Debt | 221.06B | 202.91B | 192.03B | 164.65B | 174.67B | 175.93B |
| Total Liabilities | 563.96B | 531.38B | 456.07B | 401.24B | 394.07B | 420.51B |
| Stockholders Equity | 794.83B | 885.37B | 828.31B | 749.88B | 781.16B | 658.16B |
Cash Flow | ||||||
| Free Cash Flow | 155.21B | 133.71B | 154.39B | 165.71B | 115.77B | 90.64B |
| Operating Cash Flow | 172.35B | 149.32B | 169.43B | 176.22B | 130.60B | 110.80B |
| Investing Cash Flow | -6.71B | -33.42B | -80.73B | 11.68B | -84.06B | -224.50B |
| Financing Cash Flow | -206.58B | -141.26B | -63.96B | -182.57B | -60.88B | 46.59B |
Wipro Technical Analysis
Positive
1.88
Price Trends
1.79
Positive
1.91
Positive
2.08
Positive
Market Momentum
0.07
Negative
79.07
Negative
93.44
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WIT, the sentiment is Positive. The current price of 1.88 is above the 20-day moving average (MA) of 1.77, above the 50-day MA of 1.79, and below the 200-day MA of 2.08, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 79.07 is Negative, neither overbought nor oversold. The STOCH value of 93.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WIT.
Wipro Risk Analysis
Wipro disclosed 62 risk factors in its most recent earnings report. Wipro reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wipro Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $158.51B | 17.51 | 26.77% | 2.76% | 6.47% | 11.19% | |
75 Outperform | $48.39B | 15.25 | 32.90% | 4.14% | -0.64% | 5.69% | |
74 Outperform | $19.01B | 14.29 | 15.94% | 4.23% | 0.38% | -8.33% | |
74 Outperform | $30.71B | 14.63 | 14.94% | 1.91% | 5.64% | -5.39% | |
73 Outperform | $227.92B | 21.13 | 33.52% | 2.79% | 7.90% | 82.11% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $427.07M | 11.15 | 14.86% | ― | 11.10% | 10.19% |
* Technology Sector Average
WIT
Wipro
2.15
-0.48
-18.31%
ACN
Accenture
240.26
-0.50
-0.21%
CTSH
Cognizant
69.55
2.70
4.05%
INFY
Infosys
12.75
-4.19
-24.73%
IBM
International Business Machines
251.46
-28.77
-10.26%
VRRM
Verra Mobility
2.95
-21.84
-88.10%
Wipro Corporate Events
Wipro Board Clears Q2 and Half-Year FY2026 Financial Results
Oct 20, 2026
Wipro Limited said its Board of Directors met over October 14-15, 2026, in Bengaluru to consider and approve the audited standalone and consolidated financial results for the quarter and half year ended September 30, 2026, under both Ind AS and IF...
Wipro Q2 FY27 Results Show Margin Gain and Strong Cash Flow Amid Booking Slowdown
Oct 20, 2026
Wipro reported its IFRS results for the quarter ended September 30, 2026, showing modest topline growth but mixed operational trends. Gross revenue rose 1.1% sequentially and 9.1% year-on-year to ₹247.5 billion, while IT services revenue was...
Wipro Posts Q1 FY27 Revenue Growth and Boosts Large Deal Wins as AI-Led Strategy Gains Traction
Jul 22, 2026
On July 16, 2026, Wipro reported IFRS financial results for the quarter ended June 30, 2026, posting gross revenue of ₹244.8 billion, up 10.6% year-on-year, and modest growth in net income alongside strong operating cash flow at 98% of net i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.