Wipro (WIT) AI Stock Analysis

• Market Cap: $24.40B
• Dividend Yield: 2.78%
• Average Volume (3M): 9.48M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.90
• 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: 10,487,731,000
• 10 Day Avg. Volume: 10,470,996
• 30 Day Avg. Volume: 9,478,355
• PEG Ratio: 1.02
• Price to Book (P/B): 3.30
• Price to Sales (P/S): 3.04
• P/FCF Ratio: 17.73
• Enterprise Value/Market Cap: 94.41
• Enterprise Value/Revenue: 2.53
• Enterprise Value/Gross Profit: 8.54
• Enterprise Value/Ebitda: 11.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $2.50 ▼(-7.06% Downside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is supported primarily by solid financial quality (profitability and a conservative balance sheet) and favorable valuation (high dividend yield with a moderate P/E). These are partly offset by weak technical signals (price below key moving averages with negative MACD) and a mixed earnings outlook with modest near-term growth guidance and demand/timing headwinds.

Positive Factors

Strong Profitability and Margins

Sustained ~20% operating and ~15% net margins indicate durable operational efficiency and pricing power across services. This profitability funds R&D, platform buildouts and shareholder returns, and provides cushion versus cyclical revenue swings, supporting longer-term ROE stability.

Conservative Balance Sheet

Low-to-moderate leverage and a growing equity base give Wipro financial flexibility to invest in platforms, pursue tuck-in acquisitions, sustain dividends or buybacks, and absorb restructuring or demand shocks without materially straining liquidity or credit profiles over the medium term.

Strong Cash Generation and Liquidity

High cash conversion and a $6.5bn cash pile support continued investment in AI platforms, acquisitions and capital return programs. Robust liquidity reduces refinancing risk, enables opportunistic M&A, and underpins enduring operational flexibility amid uneven revenue cycles.

Negative Factors

Stagnant / Mixed Revenue Growth

Persistent flat or slightly negative organic revenue undermines operating leverage and constrains sustainable EPS growth. Over a multi-quarter horizon, reliance on near-term deal ramps and acquisitions to drive growth raises execution risk and reduces visibility into recurring topline expansion.

Vertical and Regional Softness

Declines in EMR, Consumer and certain Americas cohorts reflect sector-specific headwinds and client delays. Structural weakness in key verticals or regions can keep utilization and pricing under pressure, complicating cross-sell of platforms and slowing durable revenue recovery even as margins are managed.

Acquisition Dilution & One‑Time Charges

Restructuring charges and acquisition-related dilution/amortization can depress near-term earnings and cash conversion. Repeated reliance on acquisitions to offset organic softness risks margin dilution and integration execution drag that can persist for several quarters if synergies take time to realize.

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

Profitable model with healthy margins (about 20% operating margin and ~15% net margin) and a conservative balance sheet (low-to-moderate leverage and mid-teens ROE). Offsets include mixed/flat recent revenue growth and softer recent free-cash-flow momentum/conversion versus prior years.

Income Statement

Wipro shows solid profitability in TTM (Trailing-Twelve-Months), with healthy operating performance (about 20% operating margin) and a strong net margin (~15%). Profitability has improved versus FY2024, but top-line momentum is mixed: revenue growth is essentially flat in FY2025 and slightly negative in FY2024, with the TTM growth figure appearing unusually high versus the recent annual pattern. Overall, this is a profitable model with stable margins, but with a key watchpoint on sustained, consistent revenue growth.

Balance Sheet

The balance sheet looks conservative for an IT services business, with low-to-moderate leverage (debt-to-equity roughly 0.22–0.26 across recent periods) and a sizable equity base that has grown over time. Returns on equity remain healthy in the mid-teens in TTM (Trailing-Twelve-Months) and FY2025, though they are below the peak levels seen earlier (closer to ~19% in FY2021–FY2022). Overall strength is high, with limited balance-sheet risk and good capital efficiency.

Cash Flow

Cash generation remains solid, with free cash flow tracking close to earnings (TTM (Trailing-Twelve-Months) free cash flow is ~89% of net income), which supports earnings quality. However, cash flow conversion looks weaker versus prior years based on the provided coverage ratio, and free cash flow growth has turned negative in TTM (Trailing-Twelve-Months) and slightly negative in FY2025 after stronger growth in FY2023–FY2024. Bottom line: good underlying cash production, but recent momentum and cash conversion have softened.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	911.47B	901.34B	903.55B	924.69B	804.46B	611.74B
Gross Profit	269.82B	276.29B	267.87B	265.11B	239.08B	193.79B
EBITDA	209.44B	220.45B	193.64B	193.52B	190.66B	166.32B
Net Income	132.95B	132.90B	111.18B	115.99B	124.28B	106.61B
Balance Sheet
Total Assets	1.41T	1.29T	1.15T	1.18T	1.08T	831.43B
Cash, Cash Equivalents and Short-Term Investments	573.65B	532.37B	410.01B	401.87B	351.28B	346.12B
Total Debt	197.94B	192.03B	164.65B	174.67B	175.93B	104.51B
Total Liabilities	512.63B	456.07B	401.24B	394.07B	420.51B	276.84B
Stockholders Equity	894.13B	828.31B	749.88B	781.16B	658.16B	553.10B
Cash Flow
Free Cash Flow	137.39B	154.39B	165.71B	115.77B	90.64B	127.97B
Operating Cash Flow	155.05B	169.43B	176.22B	130.60B	110.80B	147.55B
Investing Cash Flow	-22.54B	-80.73B	11.68B	-84.06B	-224.50B	7.74B
Financing Cash Flow	-144.97B	-63.96B	-182.57B	-60.88B	46.59B	-128.84B

Wipro Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.69 is above the 20-day moving average (MA) of 2.46, above the 50-day MA of 2.66, and below the 200-day MA of 2.71, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 34.02 is Neutral, neither overbought nor oversold. The STOCH value of 8.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WIT.

Wipro Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFY	80 Outperform	$61.18B	19.39	32.85%	2.58%	4.62%	1.06%
ACN	77 Outperform	$137.59B	18.49	25.35%	2.25%	6.58%	1.19%
JKHY	77 Outperform	$11.46B	22.79	24.28%	1.25%	7.75%	20.42%
EXLS	72 Outperform	$4.90B	20.60	25.96%	―	14.43%	29.86%
CTSH	71 Outperform	$31.95B	14.65	15.16%	1.46%	7.44%	-4.57%
WIT	66 Neutral	$24.40B	15.81	15.82%	2.78%	-1.97%	48.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Wipro Corporate Events

Wipro Posts Margin Expansion and Strong Cash Flows in Q3 FY26 as AI-Led Deals Offset Softer Bookings

On January 16, 2026, Wipro announced its financial results for the quarter ended December 31, 2025, reporting gross revenue of ₹235.6 billion, up 3.8% quarter-on-quarter and 5.5% year-on-year, while IT services segment revenue grew 1.2% sequentially and 0.2% year-on-year to $2.64 billion. IT services operating margin improved to 17.6%, its best in recent years, even as reported net income declined 3.9% sequentially and 7.0% year-on-year to ₹31.2 billion and earnings per share fell similarly; adjusted for labour code changes, however, net income and EPS showed modest growth. Total deal bookings for the quarter were $3.3 billion with large deal bookings of $0.9 billion, both lower year-on-year in constant currency, but operating cash flow remained strong at 135.4% of net income, supporting an interim dividend of ₹6 per share. Wipro also highlighted a series of renewed and expanded multi-year strategic deals across technology, health insurance, manufacturing, and facilities management, underscoring growing client adoption of its Wipro Intelligence AI platforms and AI-led delivery models, which management positioned as key differentiators in an environment of moderated booking growth but improving profitability and cash generation.

The most recent analyst rating on (WIT) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Wipro stock, see the WIT Stock Forecast page.

Wipro Reshapes Stakeholders Relationship Committee, Inducts Independent Director Päivi Rekonen

On January 16, 2026, Wipro’s board approved a reconstitution of its Administrative and Shareholders/Investors Grievance Committee, which also functions as the Stakeholders Relationship Committee, signaling a governance-focused adjustment to its board structures. Effective April 1, 2026, independent director Päivi Rekonen will join the committee as a member, replacing independent director Dr. Patrick J. Ennis, with the post‑reconstitution line‑up comprising chairman Deepak M. Satwalekar, member Rishad A. Premji and Rekonen. The move, formally communicated to stock exchanges in India and the NYSE and recorded in a Form 6‑K filed on January 21, 2026, underscores Wipro’s ongoing refresh of board committee composition to oversee shareholder and investor grievance matters, a domain closely watched by regulators and minority shareholders.

The most recent analyst rating on (WIT) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Wipro stock, see the WIT Stock Forecast page.

Wipro Board Clears Q3 FY26 Results, Declares ₹6 Interim Dividend

At a board meeting held over January 15–16, 2026, Wipro Limited’s directors approved the audited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, which have been prepared under Ind AS and IFRS and cleared by the company’s independent auditors. The board also declared an interim dividend of ₹6 per equity share of face value ₹2, payable to shareholders on record as of January 27, 2026, with payment to be made on or before February 14, 2026, underscoring Wipro’s continued capital return to investors and providing income visibility for its global shareholder base.

The most recent analyst rating on (WIT) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Wipro stock, see the WIT Stock Forecast page.

Wipro Completes Acquisition of Harman Connected Services

Wipro Limited announced the completion of its acquisition of Harman Connected Services Inc. and its subsidiaries, collectively known as DTS, from Harman International Industries, Inc. The acquisition, initially announced on August 21, 2025, was finalized on December 1, 2025. This strategic move is expected to enhance Wipro’s capabilities in the connected services domain, potentially strengthening its market position and offering expanded services to its clients.

The most recent analyst rating on (WIT) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Wipro stock, see the WIT Stock Forecast page.