Wipro Stock Plummets 3% Amid Disappointing Q4 Earnings and Cautious Growth Projections
Wipro Shares Decline Amid Mixed Q4 FY26 Results and Soft Guidance
Wipro Ltd shares experienced a decline in early trade on Friday following the company's Q4 FY26 results and subdued near-term guidance, which drew mixed reactions from brokerages. The stock was trading at Rs 203.84 in early morning deals, down 3.05 percent, reversing the mild gains seen ahead of the results announcement.
The IT major reported a mixed set of Q4 FY26 numbers, with revenue missing estimates while margins came in slightly ahead. More importantly, its Q1 FY27 guidance of -2 percent to 0 percent constant currency growth signaled a weak demand environment, which appears to have weighed on investor sentiment.
Brokerages broadly flagged the combination of revenue miss and soft guidance as key negatives for the stock. Analysts highlighted weak growth visibility as the key concern, pointing to the revenue miss, muted guidance, deal delays, and client-specific issues. They also noted continued underperformance across segments, slow deal ramp-ups, and weak traction in key verticals. Some cautioned that the stock may continue to trade at a discount to peers amid persistent execution challenges and limited recovery visibility.
Despite the weak growth outlook, some positives were highlighted. Margins remained resilient at 17.3 percent, slightly above estimates, though partly aided by one-offs, according to JPMorgan. The company has guided for margins in the 17-17.5 percent range going ahead.
More notably, Wipro announced a Rs 15,000 crore buyback at Rs 250 per share, a 19 percent premium to the pre-result closing price. Analysts said the buyback and stable margins may provide near-term downside support to the stock, though this does not materially alter the medium-term growth outlook.
| Brokerage | Revenue Growth Expectation (Q4 FY26) | Revenue Growth Expectation (Q1 FY27) |
|---|---|---|
| Analysts | - | -2% to 0% (constant currency) |
Note: The table above is not applicable in this case as there is no comparison between brokerages.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Investor Takeaway
Investors should be cautious about Wipro's weak growth prospects and revenue miss.
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