Wipro (WIT) AI Stock Analysis

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Wipro

(NYSE:WIT)

Rating:71Outperform

Price Target:

$3.00

▲(11.94% Upside)

Wipro's overall stock score reflects strong financial foundations and strategic initiatives in AI and modernization. Challenges include revenue declines and macroeconomic uncertainties, particularly in Europe, which weigh on the outlook. Technical analysis indicates caution, but robust deal bookings and margin improvements offer potential for future growth.

Positive Factors

Client Base

WIPRO owns a strong client base with a diversified portfolio mix.

Global Presence

WIPRO is a prominent player in the IT service sector, with a wide-ranging portfolio that spans 66 countries, serving over 1,400 clients.

Negative Factors

Deal Timeline Delays

Strong deal wins are yet to translate into meaningful revenue growth due to longer deal timelines and delays.

Macroeconomic Challenges

Potential global recession and rising inflationary pressures will hurt IT services' spending as companies divert their focus to cost initiatives from growth initiatives.

Supply-Side Challenges

Supply-side challenges continue to keep margins under pressure.

Wipro (WIT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$29.35B

Dividend Yield3.09%

Average Volume (3M)7.50M

Price to Earnings (P/E)20.2

Beta (1Y)0.95

Revenue Growth-1.95%

EPS Growth62.75%

CountryUS

Employees234,000

SectorTechnology

Sector Strength92

IndustryInformation Technology Services

Share Statistics

EPS (TTM)0.04

Shares Outstanding10,482,777,000

10 Day Avg. Volume8,430,116

30 Day Avg. Volume7,501,668

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap0.93

Enterprise Value/Revenue0.03

Enterprise Value/Gross Profit0.10

Enterprise Value/Ebitda0.15

Forecast

1Y Price Target

$2.69

Price Target Upside0.37% Upside

Rating ConsensusModerate Sell

Number of Analyst Covering3

Wipro Business Overview & Revenue Model

Company DescriptionWipro 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 MoneyWipro makes money primarily through the provision of IT services and solutions. Its revenue model is based on a diversified portfolio of IT offerings including application services, digital operations, cloud services, and cybersecurity. The company charges its clients for these services through various billing models, such as time and materials, fixed-price contracts, and outcome-based pricing. Additionally, Wipro has a significant presence in the digital transformation space, offering consulting services that help businesses implement technology solutions. Key revenue streams also include managed services and technology outsourcing. Strategic partnerships with major technology providers and a broad customer base across numerous sectors also contribute significantly to its earnings.

Wipro Earnings Call Summary

Earnings Call Date:Jul 17, 2025

(Q1-2026)

% Change Since: -7.90%|

Next Earnings Date:Oct 15, 2025

Earnings Call Sentiment Neutral

Wipro has shown strong deal bookings and margin improvements, with significant focus on AI and modernization. However, it faces challenges with revenue declines, especially in Europe and key sectors, amid macroeconomic uncertainties.

Q1-2026 Updates

Positive Updates

Strong Deal Bookings

Wipro reported $5 billion in total contract value for the quarter, marking a 51% year-on-year growth. Large deal bookings reached $2.7 billion, up 131% year-on-year, including 16 large deals and 2 mega deals.

IT Services Margin Expansion

The IT Services margin was 17.3%, showing an expansion of 80 basis points year-on-year.

Net Income Growth

Net income grew by 10.9% year-on-year, even after absorbing a one-time restructuring cost of INR 246 crores.

Free Cash Flow

Free cash flow generation was robust, at 115% of net income.

Interim Dividend Declaration

The Board of Directors declared an interim dividend of INR 5 per share, with cash distributed in excess of $1.3 billion over the last 6 months.

AI and Modernization Initiatives

Wipro is focusing on AI-first initiatives and modernization, which have become essential for operations across industries.

Negative Updates

Revenue Decline

IT Services revenue declined by 2% sequentially and 2.3% year-on-year in constant currency terms.

Europe Revenue Challenges

Revenue in Europe declined 6.4% sequentially and 11.6% year-on-year, with ongoing headwinds.

Decline in Key Sectors

BFSI declined 3.8% sequentially; Consumer declined 4% sequentially; and Energy, Manufacturing, and Resources declined 0.7% sequentially.

Macro Uncertainty Impact

Significant macro uncertainties are affecting demand, leading to a cautious outlook with potential growth between -1% to +1% for the next quarter.

Restructuring Costs

A one-time restructuring cost of INR 246 crores was absorbed during the quarter.

Company Guidance

In the recent earnings call for Q1 FY26, Wipro Limited provided financial guidance, projecting IT Services revenue to be in the range of $2.56 billion to $2.612 billion, implying a sequential growth of minus 1% to plus 1% in constant currency terms. The company reported an IT Services revenue of $2.59 billion for the quarter, reflecting a quarter-on-quarter decline of 2% in constant currency, but remaining within the guided range. Operating margin for Q1 stood at 17.3%, marking an 80 basis point expansion year-on-year. Additionally, the company highlighted significant deal wins, with total contract value bookings of $5 billion, representing a 51% growth year-on-year, and large deal bookings reaching $2.7 billion, up 131% year-on-year. Despite macroeconomic uncertainties, Wipro remains optimistic about the second half of the year, driven by a strong pipeline and strategic focus on consulting-led AI-powered solutions.

Wipro Financial Statement Overview

Summary

Wipro demonstrates solid financial health with a strong balance sheet, low leverage, and efficient equity utilization. The income statement reflects stable profitability, though growth is modest. Cash flow generation is robust, but the decline in free cash flow growth is a concern. Overall, the company is well-positioned for stability and potential growth.

Income Statement

Positive

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

Very Positive

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

Positive

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	890.88B	897.60B	904.88B	790.93B	619.43B
Gross Profit	273.08B	266.11B	259.43B	235.06B	196.22B
EBITDA	213.78B	193.83B	189.38B	165.30B	168.41B
Net Income	131.35B	110.45B	113.50B	122.19B	107.95B
Balance Sheet
Total Assets	1.29T	1.15T	1.18T	1.08T	831.43B
Cash, Cash Equivalents and Short-Term Investments	532.37B	407.79B	401.87B	351.28B	346.12B
Total Debt	192.03B	164.65B	174.67B	175.93B	104.51B
Total Liabilities	456.07B	401.24B	394.07B	420.51B	276.84B
Stockholders Equity	828.31B	749.88B	781.16B	658.16B	553.10B
Cash Flow
Free Cash Flow	154.39B	165.71B	115.77B	90.64B	127.97B
Operating Cash Flow	169.43B	176.22B	130.60B	110.80B	147.55B
Investing Cash Flow	-80.73B	11.68B	-84.06B	-224.50B	7.74B
Financing Cash Flow	-63.96B	-182.57B	-60.88B	46.59B	-128.84B

Wipro Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.68

Price Trends

50DMA

2.90

Negative

100DMA

2.89

Negative

200DMA

3.13

Negative

Market Momentum

MACD

-0.06

Positive

RSI

31.65

Neutral

STOCH

3.98

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WIT, the sentiment is Negative. The current price of 2.68 is below the 20-day moving average (MA) of 2.86, below the 50-day MA of 2.90, and below the 200-day MA of 3.13, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 31.65 is Neutral, neither overbought nor oversold. The STOCH value of 3.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WIT.

Wipro Risk Analysis

Wipro disclosed 60 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

Overall Rating

UnderperformOutperform

Sector (69)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFY	75 Outperform	$69.11B	20.95	30.46%	3.09%	4.52%	-0.22%
CTSH	74 Outperform	$34.14B	14.19	16.69%	1.73%	6.34%	12.16%
WIT	71 Outperform	$29.35B	20.18	16.50%	3.09%	-1.95%	62.75%
G	71 Outperform	$7.41B	14.42	22.21%	1.52%	7.31%	-15.86%
ACN	70 Outperform	$153.89B	19.66	27.27%	2.32%	6.21%	14.87%
Sector *	69 Neutral	¥233.80B	14.88	7.64%	2.58%	9.19%	5.56%
EPAM	65 Neutral	$8.46B	21.15	11.57%	―	4.72%	-3.06%

* Technology Sector Average

Performance Comparison

WIT

Wipro

2.68

-0.14

-4.96%

ACN

Accenture

247.07

-63.10

-20.34%

CTSH

Cognizant

69.90

-2.72

-3.75%

EPAM

Epam Systems

149.33

-41.83

-21.88%

Genpact

42.37

10.44

32.70%

INFY

Infosys

16.20

-4.49

-21.70%

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.Date of analysis: Jul 25, 2025