Wipro Shares Fall After Cautious Q1 Revenue Outlook

Wipro shares declined between 2.3% and 3.3% on Friday after the company reported its June quarter results and issued a cautious outlook for the September quarter. Wipro Ltd reported a consolidated net profit of Rs 3,352 crore and revenue of Rs 24,479 crore, an 11% year-on-year increase that nevertheless missed analyst estimates of Rs 24,776 crore. The company's board approved an interim dividend of Rs 2 per share.

Despite total bookings of $3.37 billion, IT services revenue fell 1.4% sequentially to approximately $2.61 billion. Wipro projected that IT services revenue for the September quarter would range between a 1.5% decline and a 0.5% increase in constant currency. Management attributed this outlook to macroeconomic uncertainty and geopolitical instability.

Brokerages including Jefferies, Citi, BofA, and Motilal Oswal lowered their target prices, citing slow organic growth and uneven recovery across verticals. Motilal Oswal maintained a Neutral rating and reduced its FY27 earnings per share estimate by approximately 3.5% due to weak margin performance.

CEO Srini Pallia noted a shift in client behavior, stating that customers are moving away from basic technology modernization and toward AI-enabled operating models to improve productivity and resilience.