Wipro (WIT) AI Stock Analysis

• Market Cap: $30.21B
• Dividend Yield: 2.92%
• Average Volume (3M): 6.19M
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.92
• Revenue Growth: -1.97%
• EPS Growth: 48.61%
• Country: US
• Employees: 234,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.04
• Shares Outstanding: 10,484,424,000
• 10 Day Avg. Volume: 5,438,495
• 30 Day Avg. Volume: 6,188,975
• PEG Ratio: 1.03
• Price to Book (P/B): 3.30
• Price to Sales (P/S): 3.07
• P/FCF Ratio: 17.73
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.09
• Enterprise Value/Ebitda: 0.11
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.14
• Revenue Forecast (FY): $10.35B

• Rating: 74 Outperform
• Price Target: $3.00 ▲(11.52% Upside)

Wipro's overall stock score is driven by its strong financial performance, characterized by solid profitability and a robust balance sheet. The technical analysis indicates moderate bullish momentum, while the valuation suggests a fair price with an attractive dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Strong Deal Wins

Wipro's significant increase in large deal bookings indicates strong market demand and enhances its competitive position, supporting long-term revenue stability.

Operating Margin Expansion

Sustained margin expansion reflects operational efficiency and cost management, providing a buffer against market volatility and supporting profitability.

AI and Modernization Focus

Focus on AI and modernization positions Wipro at the forefront of tech innovation, driving future growth and maintaining relevance in a rapidly evolving industry.

Negative Factors

Revenue Decline

Declining revenue in core IT services suggests potential challenges in market demand or execution, impacting long-term growth prospects.

Challenges in Europe

Persistent challenges in Europe, a key market, could hinder Wipro's growth and necessitate strategic adjustments to mitigate regional risks.

BFSI Sector Decline

Decline in BFSI sector, a significant revenue contributor, indicates sector-specific challenges that could affect Wipro's financial performance.

Wipro Business Overview & Revenue Model

Company Description

Wipro Limited operates as information technology (IT), consulting, and business process services company worldwide. It operates through three segments: IT Services, IT Products, and India State Run Enterprise Services (ISRE). The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as healthcare and medical devices, consumer goods and life sciences, retail, transportation and services, communications, media and information services, technology products and platforms, banking, financial services and insurance, manufacturing, hi-tech, energy, and utilities. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the India market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The ISRE segment offers IT services to entities and departments owned or controlled by the Government of India and/or various Indian State Governments. The company was incorporated in 1945 and is based in Bengaluru, India.

How the Company Makes Money

Wipro generates revenue primarily through its IT services and consulting business. The company's revenue model is based on providing technology solutions and services to a diverse set of clients worldwide. Key revenue streams include project-based contracts, managed services, and time-and-material contracts, which provide flexibility to clients based on their specific needs. Additionally, Wipro has established significant partnerships with major technology companies such as Microsoft, SAP, and Oracle, which enhance its service offerings and market reach. The company also benefits from recurring revenue through long-term contracts and service agreements, contributing to a stable income base. Furthermore, Wipro invests in research and development to innovate and expand its service portfolio, which helps to attract new clients and retain existing ones.

Wipro Financial Statement Overview

Summary

Wipro demonstrates strong financial health with robust profitability, a solid balance sheet, and efficient cash flow generation. The income statement shows stable margins, and the balance sheet reflects low leverage and effective equity utilization. However, the decline in free cash flow growth presents a challenge.

Income Statement

Wipro has demonstrated strong profitability with a consistent gross profit margin of around 30% and a net profit margin that has improved over the past year to approximately 15%. The company shows a stable EBIT margin of 17% and a solid EBITDA margin of 24%. Revenue growth has been relatively modest, indicating a mature phase in its business cycle. Overall, Wipro's income statement reflects a profitable and stable operation with room for growth in revenue.

Balance Sheet

Wipro's balance sheet is robust with a low debt-to-equity ratio of 0.23, indicating prudent financial leverage. The return on equity stands at an impressive 15.86%, showcasing effective utilization of shareholder equity. The equity ratio of 64.4% suggests strong solvency, with significant shareholder equity in total assets. The company's financial position is stable, with a solid foundation for future growth.

Cash Flow

The cash flow analysis reveals a strong operating cash flow to net income ratio of 1.29, indicating efficient cash generation relative to net income. However, the free cash flow has seen a decline, with a free cash flow growth rate of -6.84% year-over-year. Despite this, the free cash flow to net income ratio remains strong at 1.18, suggesting good cash profitability. Overall, Wipro's cash flow position is solid but faces challenges in maintaining free cash flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	896.55B	890.88B	897.60B	904.88B	790.93B	619.43B
Gross Profit	270.02B	273.08B	266.11B	259.43B	235.06B	196.22B
EBITDA	208.60B	213.78B	193.83B	189.38B	187.51B	168.41B
Net Income	135.06B	131.35B	110.45B	113.50B	122.19B	107.95B
Balance Sheet
Total Assets	1.31T	1.29T	1.15T	1.18T	1.08T	831.43B
Cash, Cash Equivalents and Short-Term Investments	510.25B	532.37B	407.79B	401.87B	351.28B	346.12B
Total Debt	161.64B	192.03B	164.65B	174.67B	175.93B	104.51B
Total Liabilities	448.06B	456.07B	401.24B	394.07B	420.51B	276.84B
Stockholders Equity	860.71B	828.31B	749.88B	781.16B	658.16B	553.10B
Cash Flow
Free Cash Flow	145.94B	154.39B	165.71B	115.77B	90.64B	127.97B
Operating Cash Flow	161.77B	169.43B	176.22B	130.60B	110.80B	147.55B
Investing Cash Flow	37.24B	-80.73B	11.68B	-84.06B	-224.50B	7.74B
Financing Cash Flow	-176.85B	-63.96B	-182.57B	-60.88B	46.59B	-128.84B

Wipro Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 2.69 is below the 20-day moving average (MA) of 2.71, above the 50-day MA of 2.68, and below the 200-day MA of 2.83, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 70.70 is Negative, neither overbought nor oversold. The STOCH value of 95.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WIT.

Wipro Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACN	80 Outperform	$165.32B	21.94	25.82%	2.28%	7.36%	6.18%
CTSH	79 Outperform	$38.96B	18.71	14.50%	1.54%	7.44%	-4.57%
EXLS	77 Outperform	$6.46B	27.58	25.96%	―	14.43%	29.86%
JKHY	77 Outperform	$13.15B	27.60	23.45%	1.28%	7.75%	20.42%
INFY	76 Outperform	$74.47B	22.90	29.15%	2.70%	4.62%	1.06%
WIT	74 Outperform	$30.21B	18.99	16.39%	2.92%	-1.97%	48.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Wipro Corporate Events

Wipro Reports Strong Q2 2025 Financial Results with Significant Deal Growth

On October 16, 2025, Wipro Limited announced its financial results for the quarter ended September 30, 2025, reporting a significant increase in large deal bookings by 90.5% year-over-year, reaching $2.9 billion. The company’s gross revenue grew by 2.5% quarter-over-quarter, while net income saw a year-over-year increase of 1.2%. Despite a slight contraction in IT services operating margin due to a customer bankruptcy provision, the adjusted margin expanded by 0.4% year-over-year. Wipro’s strategic focus on AI and cloud solutions has led to several key engagements, including modernization projects with European financial institutions and U.S. healthcare companies, positioning the company strongly in the global market.

Wipro Announces Financial Results for September 2025 Quarter

On October 16, 2025, Wipro Limited announced the approval of its financial results for the quarter and half-year ended September 30, 2025, during a Board meeting held over October 15-16, 2025. The results, which include audited standalone and consolidated financial statements under Ind AS and IFRS, reflect Wipro’s ongoing commitment to transparency and regulatory compliance. This announcement is significant for stakeholders as it provides insights into the company’s financial health and performance, potentially impacting investor confidence and market positioning.