Wipro (WIT) AI Stock Analysis

• Market Cap: $27.07B
• Dividend Yield: 2.78%
• Average Volume (3M): 6.39M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.86
• 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: 10,487,198,000
• 10 Day Avg. Volume: 9,229,804
• 30 Day Avg. Volume: 6,388,771
• 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: 94.21
• Enterprise Value/Revenue: 2.83
• Enterprise Value/Gross Profit: 9.41
• Enterprise Value/Ebitda: 11.58
• 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: 67 Neutral
• Price Target: $3.00 ▲(11.52% Upside)

Score is driven by solid financial quality (strong margins and low leverage) and a supportive dividend, tempered by weakening recent free-cash-flow trend and a mixed technical setup. Earnings-call guidance and commentary point to steady margins but limited near-term growth visibility, keeping the overall outlook balanced rather than strongly bullish.

Positive Factors

Strong profitability and margins

Consistently high gross and operating margins indicate durable delivery of higher-value services and pricing power across engagements. Sustained margins support reinvestment in capabilities, buffer cyclic demand swings, and underpin healthy returns on capital even if revenue growth moderates.

Conservative balance sheet and liquidity

Low leverage and substantial equity provide financial flexibility to fund acquisitions, weather downturns, and return cash to shareholders. A conservative capital structure reduces refinancing risk and gives management optionality for strategic investments or share buybacks over the medium term.

Strategic acquisition bolstering engineering and products

Acquiring HARMAN DTS and integrating engineering capabilities is a structural move to shift revenue mix toward productized, higher‑engineering services. This expands addressable markets, supports cross‑sell into automotive/connected services, and accelerates AI/engineering productization capacity.

Negative Factors

Weakening free cash flow trend

A marked decline in free cash flow growth and deteriorating cash conversion reduce internal funding for investments, dividends, or M&A. If working‑capital or collection timing issues persist, the company may face pressure on sustainable cash returns and balance‑sheet flexibility.

Soft organic revenue growth and limited near‑term visibility

Prolonged weak organic revenue constrains scale economics and slows margin leverage from higher fixed‑cost absorption. Limited near‑term visibility hampers resource planning and investment pacing, making multi‑quarter growth recovery and predictable earnings expansion less certain.

Deal timing, sector weakness and ramp‑up risks

Reliance on large, lumpy deals with delayed ramps and exposure to sector-specific headwinds (EMR, Consumer) increases revenue volatility and execution risk. Persistent timing delays can depress utilization, delay revenue recognition, and challenge sustaining margins across cycles.

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

Overall fundamentals are solid: strong profitability (TTM net margin ~15.1%, EBIT margin ~21.1%) and conservative leverage (debt-to-equity ~0.19). The main offset is softer cash-flow momentum (TTM free cash flow sharply down and weaker cash conversion), which reduces confidence in near-term quality and durability of results.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded strongly (+44.3% growth) after several years of flat-to-slightly down annual revenue growth (FY2023–FY2025). Profitability is a clear strength: TTM gross margin is ~30.1% and net margin is ~15.1%, with solid operating profitability (TTM EBIT margin ~21.1% and EBITDA margin ~24.7%). A key watch-out is that margins have moved around over time (net margin dipped into the ~12–15% range in recent years versus ~15.4% in FY2021), suggesting some cyclicality in demand and/or pricing and cost pressure.

Balance Sheet

The balance sheet looks conservatively financed with low leverage: TTM debt is ~161.6B versus equity of ~860.7B (debt-to-equity ~0.19), improving from FY2025 (~0.23) and broadly stable at moderate levels historically. Returns remain healthy for the sector, with TTM return on equity ~16.0% (similar to FY2025), indicating solid profitability relative to shareholder capital. Primary risk is not leverage but the reliance on sustaining strong operating performance to maintain returns, as ROE is below FY2021 levels (~18.6%).

Cash Flow

Cash generation is positive with TTM operating cash flow (~161.8B) and free cash flow (~145.9B), and free cash flow remains close to reported earnings (TTM free cash flow is ~90% of net income), which is supportive of earnings quality. However, near-term momentum is a concern: TTM free cash flow growth is sharply negative (-6.106), and cash conversion has weakened versus FY2024–FY2025 (operating cash flow is a smaller share of revenue than in prior years), pointing to potential working-capital or collection timing headwinds.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	900.02B	901.34B	903.55B	924.69B	804.46B	611.74B
Gross Profit	271.06B	276.29B	267.87B	265.11B	239.08B	193.79B
EBITDA	220.26B	220.45B	193.64B	193.52B	190.66B	166.32B
Net Income	135.47B	132.90B	111.18B	115.99B	124.28B	106.61B
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	410.01B	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: Negative
• Last Price: 2.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 2.69 is above the 20-day moving average (MA) of 2.66, below the 50-day MA of 2.73, and below the 200-day MA of 2.73, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 42.51 is Neutral, neither overbought nor oversold. The STOCH value of 28.33 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
INFY	80 Outperform	$70.64B	21.57	32.85%	2.58%	4.62%	1.06%
ACN	77 Outperform	$148.69B	19.98	25.35%	2.25%	6.58%	1.19%
EXLS	72 Outperform	$5.15B	21.13	25.96%	―	14.43%	29.86%
CTSH	71 Outperform	$37.02B	16.82	15.16%	1.46%	7.44%	-4.57%
JKHY	71 Outperform	$12.58B	24.95	24.28%	1.25%	7.75%	20.42%
WIT	67 Neutral	$27.07B	17.59	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 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.

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.

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.

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.

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.