Brokerages Diverge on Wipro Stock Following Q4 Revenue Miss

Wipro's Q4 FY26 Results Leave Analysts Divided

Wipro Ltd's stock outlook remains sharply divided after its Q4 FY26 quarter results, with brokerages flagging weak growth visibility despite acknowledging support from margins and a Rs 15,000 crore buyback announced at a premium.

The company reported Q4 revenue of Rs 24,017 crore, below the CNBC-TV18 poll of Rs 24,343 crore. In dollar terms, revenue stood at $2,651 million versus estimates of $2,666 million, growing 0.6 percent sequentially. EBIT margins came in at 17.3 percent, slightly above expectations but lower than the previous quarter. The company guided for constant currency growth of -2 percent to 0 percent for Q1FY27, indicating a weak near-term demand environment.

Brokerage views on the stock diverged significantly across the board, reflecting varying perspectives on Wipro's growth challenges and capital allocation strategy. Nomura maintained a buy rating on Wipro shares with a target price of Rs 250, citing steady deal wins and the company's ability to maintain tight margins. JPMorgan, on the other hand, retained a neutral rating with a target price of Rs 200, flagging client-specific issues and deal delays as risks to near-term growth.

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Kotak Institutional Equities took a more cautious stance with a sell rating and a target price of Rs 190, citing continued underperformance across segments, client churn, weak execution, and persistent market share losses. CLSA and HSBC maintained hold ratings with target prices of Rs 194 and Rs 210, respectively, highlighting weak revenue performance, soft deal wins, and delays in deal ramp-ups. Morgan Stanley reiterated an underweight rating and cut its target price to Rs 194, stating that both Q4 growth and Q1 guidance missed expectations.

A key positive highlighted across brokerages is the Rs 15,000 crore buyback at Rs 250 per share, implying a 19 percent premium to the pre-result closing price of Rs 210.15. Analysts said the buyback, along with stable margins, may provide near-term downside support to the stock, though it does not materially change the medium-term growth outlook.