The fourth quarter of FY25 turned out to be a solid one for Wipro, marking a notable recovery in profitability. The IT services major reported a net profit of ₹3,588 crore, registering a 25.5% year-on-year jump from ₹2,858 crore in Q4FY24. The company’s profit before tax rose to ₹4,743 crore, while revenue from operations increased to ₹22,504 crore, up from ₹22,208 crore in the year-ago period. With total income touching ₹23,693 crore and basic earnings per share climbing to ₹3.41 (vs ₹2.71 in Q4FY24), Wipro's performance showcased resilience in the face of a still-uncertain macro environment. Despite these positive numbers, the company maintained a cautious tone for the quarters ahead, with brokerages issuing mixed reactions.
Looking ahead, Wipro’s guidance for Q1FY26 suggests further caution, with revenue expected to decline between -3.5% to -1.5% quarter-on-quarter in constant currency terms, lower than analysts' expectations of a -2% to 0% range. On a positive note, the company announced deal wins totaling $4 billion, including a significant $650 million deal with Phoenix Group.
Following the results, multiple brokerage houses have weighed in with a more cautious stance. Bank of America (BofA) has maintained its Underperform rating while cutting the target price to ₹225 from ₹260. BofA cited disappointing Q4 revenue and a weak Q1 outlook, adding that the pressure to catch up may continue well into FY26.
Citi has also taken a bearish view, maintaining a Sell rating and reducing its target price to ₹215 from ₹240. Citi noted that the Q1 guidance was well below expectations, and added that management’s commentary around tariffs indicates ongoing client uncertainties. Several key segments such as manufacturing, consumer, BFS, and Europe have been impacted.
Bernstein, too, has maintained an Underperform rating with a target price of ₹200, pointing to a still-uncertain global macro environment that continues to impact client spending.
Meanwhile, Morgan Stanley (MS) reiterated its Underweight stance with a target price of ₹265. MS highlighted that IT services revenue declined 0.8% QoQ, landing at the lower end of the guidance band and missing expectations. Margins were soft and the Q1FY26 guidance was once again below analyst estimates.
With declining growth and cautious guidance ahead, analysts believe that Wipro might face continued pressure in the near term, with any recovery likely to be gradual through FY26.
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