Wipro Q4 results: Stock analysts cut share price targets; here's why
Wipro share price: Centrum Broking said the demand environment remains uncertain, with clients taking a cautious approach to discretionary spending and large transformation programs.
- Apr 17, 2025,
- Updated Apr 17, 2025 7:36 AM IST
Wipro shares are in focus today after the IT major reported a soft set of Q4 results, with Q1 revenue guidance coming in below the Street expectations, derailing its turnaround prospects. A couple of stock analysts have cut their FY26 earnings projections by 3-4 per cent, which resulted in downward revisions in their ratings and target prices on the Wipro stock.
The Wipro management has guided for (3.5 per cent) to (1.5 per cent) QoQ revenue degrowth for Q1FY26. Centrum Broking said the demand environment remains uncertain, with clients taking a cautious approach to discretionary spending and large transformation programs.
"While Capco delivered strong growth, softness persisted in key markets like Europe and APMEA. We anticipate this cautious sentiment to persist in the near term, potentially weighing on revenue growth as clients take a more measured approach to tech investment," it said.
Centrum Broking suggested a 'Reduce' rating on Wipro, with a revised target price of Rs 250 against Rs 291 earlier), valuing it at a PE of 18 times on March 2027 EPS.
Nuvama said Wipro posted soft Q4 results, with IT Services revenue coming in at $2,597 million, down 0.8 per cent QoQ in CC terms against the Street expectations of 0.4 per cent CC degrowth QoQ. IT Services EBIT margin was flat QoQ at 17.5 per cent, up 110 basis points YoY, in-line with expectations. Large deal TCV were strong at $1.8 billion, up 48 per cent YoY.
"Wipro’s weak Q1FY26 guidance, driven by elevated levels of macro uncertainty due to tariffs, makes it difficult for it to report positive growth in FY26 – thus derailing its turnaround thesis. We are trimming FY26/27 EPS on lower growth expectations. We now value Wipro at 20 times FY27 PE. Downgrade to ‘Hold’ with a target of Rs 260 (earlier Rs 300)," Nuvama said.
In overnight trading, Wipro ADRs fell 3.19 per cent to $2.730 on NYSE. In afterhours, they fell another 0.37 per cent.
MOFSL expects a 1.9 per cent YoY CC revenue decline in FY26, with operating margins at 17.2 per cent. It cut its FY26/FY27 EPS estimates by 4 per cent to account for weak 1QFY26 guidance and sustained demand softness in key verticals and regions.
"We reiterate our Sell rating on Wipro with a target of Rs 215, implying 17 times FY27 EPS," the brokerage said.
To factor in the near-term weakness and weak guidance, Nirmal Bang cut its FY26/27 dollar revenue estimates for Wipro by 3 per cent/2.4 per cent but maintained its margin projections.
"While margins are improving, sustained growth recovery and large deal ramp-ups will be key to a rerating. We maintain our Hold rating on Wipro," it said.
Wipro shares are in focus today after the IT major reported a soft set of Q4 results, with Q1 revenue guidance coming in below the Street expectations, derailing its turnaround prospects. A couple of stock analysts have cut their FY26 earnings projections by 3-4 per cent, which resulted in downward revisions in their ratings and target prices on the Wipro stock.
The Wipro management has guided for (3.5 per cent) to (1.5 per cent) QoQ revenue degrowth for Q1FY26. Centrum Broking said the demand environment remains uncertain, with clients taking a cautious approach to discretionary spending and large transformation programs.
"While Capco delivered strong growth, softness persisted in key markets like Europe and APMEA. We anticipate this cautious sentiment to persist in the near term, potentially weighing on revenue growth as clients take a more measured approach to tech investment," it said.
Centrum Broking suggested a 'Reduce' rating on Wipro, with a revised target price of Rs 250 against Rs 291 earlier), valuing it at a PE of 18 times on March 2027 EPS.
Nuvama said Wipro posted soft Q4 results, with IT Services revenue coming in at $2,597 million, down 0.8 per cent QoQ in CC terms against the Street expectations of 0.4 per cent CC degrowth QoQ. IT Services EBIT margin was flat QoQ at 17.5 per cent, up 110 basis points YoY, in-line with expectations. Large deal TCV were strong at $1.8 billion, up 48 per cent YoY.
"Wipro’s weak Q1FY26 guidance, driven by elevated levels of macro uncertainty due to tariffs, makes it difficult for it to report positive growth in FY26 – thus derailing its turnaround thesis. We are trimming FY26/27 EPS on lower growth expectations. We now value Wipro at 20 times FY27 PE. Downgrade to ‘Hold’ with a target of Rs 260 (earlier Rs 300)," Nuvama said.
In overnight trading, Wipro ADRs fell 3.19 per cent to $2.730 on NYSE. In afterhours, they fell another 0.37 per cent.
MOFSL expects a 1.9 per cent YoY CC revenue decline in FY26, with operating margins at 17.2 per cent. It cut its FY26/FY27 EPS estimates by 4 per cent to account for weak 1QFY26 guidance and sustained demand softness in key verticals and regions.
"We reiterate our Sell rating on Wipro with a target of Rs 215, implying 17 times FY27 EPS," the brokerage said.
To factor in the near-term weakness and weak guidance, Nirmal Bang cut its FY26/27 dollar revenue estimates for Wipro by 3 per cent/2.4 per cent but maintained its margin projections.
"While margins are improving, sustained growth recovery and large deal ramp-ups will be key to a rerating. We maintain our Hold rating on Wipro," it said.