Wipro (WIT) AI Stock Analysis

• Market Cap: $28.76B
• Dividend Yield: 3.09%
• Average Volume (3M): 9.42M
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.94
• 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: 10,483,875,000
• 10 Day Avg. Volume: 10,136,525
• 30 Day Avg. Volume: 9,421,409
• PEG Ratio: 23.47
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 7.55
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.09
• Enterprise Value/Ebitda: 0.13
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $3.00 ▲(13.64% Upside)

Wipro's overall stock score reflects its strong financial foundation and reasonable valuation, tempered by mixed technical signals and challenges highlighted in the earnings call. The company's robust deal pipeline and margin improvements are positive, but revenue declines and sector-specific challenges pose risks.

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 segments, which consist of various offerings such as application development, infrastructure management, and digital transformation services. The company operates on a time-and-materials and fixed-price contract basis, allowing it to earn revenue based on the services rendered and project deliverables. Key revenue streams include project-based services, managed services, and long-term contracts with clients. Wipro also benefits from strategic partnerships with major technology providers like Microsoft, SAP, and Oracle, which enhance its service offerings and enable access to new markets. Additionally, the company has been focusing on expanding its presence in emerging technologies like artificial intelligence, machine learning, and cloud services, which are expected to drive future growth and profitability.

Wipro Financial Statement Overview

Summary

Wipro demonstrates strong financial health with robust profitability and a solid balance sheet. The company maintains a low debt-to-equity ratio and effective equity utilization. However, challenges in maintaining free cash flow growth slightly temper the overall financial performance.

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 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	892.59B	897.60B	890.88B	904.88B	790.93B	619.43B
Gross Profit	270.85B	266.11B	273.08B	259.43B	235.06B	196.22B
EBITDA	183.55B	193.83B	213.78B	189.38B	165.30B	168.41B
Net Income	134.69B	110.45B	131.35B	113.50B	122.19B	107.95B
Balance Sheet
Total Assets	1.31T	1.15T	1.29T	1.18T	1.08T	831.43B
Cash, Cash Equivalents and Short-Term Investments	―	407.79B	532.37B	401.87B	351.28B	346.12B
Total Debt	158.74B	164.65B	192.03B	174.67B	175.93B	104.51B
Total Liabilities	437.08B	401.24B	456.07B	394.07B	420.51B	276.84B
Stockholders Equity	868.90B	749.88B	828.31B	781.16B	658.16B	553.10B
Cash Flow
Free Cash Flow	155.43B	165.71B	154.39B	115.77B	90.64B	127.97B
Operating Cash Flow	170.59B	176.22B	169.43B	130.60B	110.80B	147.55B
Investing Cash Flow	-42.26B	11.68B	-80.73B	-84.06B	-224.50B	7.74B
Financing Cash Flow	-103.63B	-182.57B	-63.96B	-60.88B	46.59B	-128.84B

Wipro Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2.64 is below the 20-day moving average (MA) of 2.67, below the 50-day MA of 2.73, and below the 200-day MA of 2.95, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 42.93 is Neutral, 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
ACN	―	$157.11B	20.85	25.82%	2.40%	7.36%	6.18%
CTSH	―	$33.12B	13.77	16.69%	1.81%	6.34%	12.16%
INFY	―	$71.83B	22.15	29.15%	3.05%	4.62%	1.06%
EXLS	―	$6.70B	28.70	24.70%	―	15.15%	34.33%
WIT	―	$28.76B	17.85	16.39%	3.09%	-1.97%	48.61%
JKHY	―	$11.21B	24.73	22.94%	1.48%	7.21%	19.35%
Sector *	―	$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.

Wipro to Acquire Harman Connected Services for $375 Million

On August 21, 2025, Wipro Limited announced its agreement to acquire Harman Connected Services Inc. and its subsidiaries, collectively known as DTS, from Harman International Industries, Inc. The acquisition, valued at up to $375 million, is expected to be completed by December 31, 2025, and aims to enhance Wipro’s engineering and IT service capabilities. This strategic move is set to expand Wipro’s offerings in AI-powered digital engineering and device engineering, providing clients with a combination of specialized service and global reach. The acquisition requires anti-trust approvals under U.S. competition laws and is anticipated to strengthen Wipro’s market position in the ER&D and IT services industry.