Wipro Q4 guidance weak: Should you buy, hold or sell this IT stock?
JM Financial said Wipro’s Q3 results were lacklustre and highlighted persistent growth challenges, noting that strong last twelve month deal bookings were yet to translate into revenue.
- Jan 19, 2026,
- Updated Jan 19, 2026 8:57 AM IST
Wipro Ltd reported a mixed operating performance for the December quarter, with revenue and margins coming in steady. Its guidance for the March quarter came in below analyst estimates. Analysts said growth was impacted by a slower ramp-up of large deals and weakness in the EMR vertical.
JM Financial said Wipro’s December quarter results were lacklustre and highlighted persistent growth challenges, noting that strong last twelve month deal bookings were yet to translate into revenue. The brokerage cut its earnings per share estimates by 3 to 4.5 per cent but maintained its target price, citing the potential for a large capital return through a buyback, undemanding valuations of 19 times FY27, and expectations of an overall demand recovery.
Wipro has guided for 0-2 per cent sequential revenue growth in constant currency terms for Q4. This includes a 150 basis points contribution from Harman acquisition.
Nomura said it had expected Wipro to guide for 0-2 per cent QoQ growth organically. The management attributed the guidance to fewer working days in Q4 against Q3 and delayed ramp-ups in certain deals won in earlier quarters of FY26 in BFSI and Hitech verticals.
"We lower our FY26-28F EPS by 2-3 per cent. We lower our target to Rs 290 (from Rs 300), which we set at 22x (unchanged) 1HFY28F EPS. Our valuation methodology is discussed here . After the recent increase in the return of capital to shareholders under the revised capital allocation policy, Wipro’s FY27F dividend yield is 4 per cent. The stock currently trades at 20.8x FY27F EPS," it said.
MOFSL said Wipro's demand has continued to be driven mainly by cost optimization and vendor consolidation, rather than broad-based discretionary spending or large-scale AI-led programs. While the overall deal pipeline remains intact, it believes the pace of converting these deals into actual revenue has been slower than expected, which is keeping growth uneven.
"We think near-term revenue visibility will remain limited, as fewer working days in 4Q and delayed ramp-ups together weigh on growth. Given this, we now build in an organic revenue decline of 0.4 per cent and overall revenue growth of 0.5 per cent YoY CC in FY26," MOFSL said while keeping its 'Neutral' stance on the stock. MOFSL suggested a target of Rs 275 on Wipro.
Nirmal Bang said Wipro's total bookings for Q3 at $3,335 million for the quarter were down 29 per cent QoQ and 5 per cent YoY. Large deal bookings at $871 million were down 69.5 per cent and 9.4 per cent on QoQ and YoY basis, respectively.
This, it said, comes after two consecutive quarters of over $4.5 billion deal wins.
"Wipro has delivered a decent revenue and strong margin performance, but lower deal TCV reduces visibility going forward as caution prevails due to lower ACVs, as deal durations are longer and discretionary spends are lower along with macro uncertainty," Nirmal Bang said, as it suggested 'Hold' and a target of Rs 296 on the Wipro stock.
Wipro Ltd reported a mixed operating performance for the December quarter, with revenue and margins coming in steady. Its guidance for the March quarter came in below analyst estimates. Analysts said growth was impacted by a slower ramp-up of large deals and weakness in the EMR vertical.
JM Financial said Wipro’s December quarter results were lacklustre and highlighted persistent growth challenges, noting that strong last twelve month deal bookings were yet to translate into revenue. The brokerage cut its earnings per share estimates by 3 to 4.5 per cent but maintained its target price, citing the potential for a large capital return through a buyback, undemanding valuations of 19 times FY27, and expectations of an overall demand recovery.
Wipro has guided for 0-2 per cent sequential revenue growth in constant currency terms for Q4. This includes a 150 basis points contribution from Harman acquisition.
Nomura said it had expected Wipro to guide for 0-2 per cent QoQ growth organically. The management attributed the guidance to fewer working days in Q4 against Q3 and delayed ramp-ups in certain deals won in earlier quarters of FY26 in BFSI and Hitech verticals.
"We lower our FY26-28F EPS by 2-3 per cent. We lower our target to Rs 290 (from Rs 300), which we set at 22x (unchanged) 1HFY28F EPS. Our valuation methodology is discussed here . After the recent increase in the return of capital to shareholders under the revised capital allocation policy, Wipro’s FY27F dividend yield is 4 per cent. The stock currently trades at 20.8x FY27F EPS," it said.
MOFSL said Wipro's demand has continued to be driven mainly by cost optimization and vendor consolidation, rather than broad-based discretionary spending or large-scale AI-led programs. While the overall deal pipeline remains intact, it believes the pace of converting these deals into actual revenue has been slower than expected, which is keeping growth uneven.
"We think near-term revenue visibility will remain limited, as fewer working days in 4Q and delayed ramp-ups together weigh on growth. Given this, we now build in an organic revenue decline of 0.4 per cent and overall revenue growth of 0.5 per cent YoY CC in FY26," MOFSL said while keeping its 'Neutral' stance on the stock. MOFSL suggested a target of Rs 275 on Wipro.
Nirmal Bang said Wipro's total bookings for Q3 at $3,335 million for the quarter were down 29 per cent QoQ and 5 per cent YoY. Large deal bookings at $871 million were down 69.5 per cent and 9.4 per cent on QoQ and YoY basis, respectively.
This, it said, comes after two consecutive quarters of over $4.5 billion deal wins.
"Wipro has delivered a decent revenue and strong margin performance, but lower deal TCV reduces visibility going forward as caution prevails due to lower ACVs, as deal durations are longer and discretionary spends are lower along with macro uncertainty," Nirmal Bang said, as it suggested 'Hold' and a target of Rs 296 on the Wipro stock.