Wipro Dips Over 8% on Soft Q4 Guidance, IT Stocks Cautious
Wipro Dips Over 8% on Soft Q4 Guidance, IT Stocks Cautious
Wipro slides more than 8% after a tepid Q4 outlook, while revenue climbs modestly; analysts split on the stock's near-term trajectory.
Mumbai—Wipro shares slid more than 8% on Monday after the IT services firm issued a cautious fourth-quarter growth outlook. The company reported revenue from operations of ₹23,556 crore for the quarter ended December 31, with a 3.8% sequential and 5.5% year-on-year rise, while framing guidance that fell short of market expectations amid the Harman acquisition’s impact.
Analysts were divided on the stock’s prospects following the soft guidance and a series of headwinds. Sushovon Nayak of Anand Rathi Institutional Equities attributed the sharp move to the 0-2% Q4 growth outlook and noted delays in large deal ramp-ups, alongside a 5% quarterly decline in the manufacturing vertical. Some brokers downgraded the stock or trimmed targets, while others maintained more positive views despite the softer tone. At the close, Wipro’s NSE price stood at ₹245.5, down 8.2%, even as its ADRs rose about 2.18% intraday.
Guidance for the fourth quarter projects 0-2% revenue growth, factoring in the Harman integration and ongoing mix of large deal timelines. This outlook underwhelmed a segment of the market, contributing to the equity’s retreat while the company emphasizes execution and margin discipline as key levers going forward.
On the management front, Wipro reiterated its focus on an execution-led growth path and an AI-first approach to win deals. Margin improvements remain a priority, with the company also signaling adjusted hiring plans—campus hiring tightening in some areas while lateral hiring continues based on project needs—aimed at preserving profitability in a challenged near term.
