Wipro, a leading Indian IT services company, reported a disappointing performance for the first quarter, with analysts citing a significant fall in deal bookings and weak organic revenue growth guidance for the upcoming quarter. The news, released on July 17, 2026, led to a decline in Wipro's share price and prompted several institutional brokerages to revise their target prices downwards.
Q1 Performance and Weak Outlook
The June quarter results revealed a challenging environment for Wipro. Deal wins for the quarter came in below market estimates, signaling a slowdown in new business acquisition. Furthermore, the company's guidance for Q2 revenue growth was notably weak, projected at minus 1.5 per cent to 0.5 per cent sequentially in constant currency (CC) terms. This implies a potential organic decline for Q2 FY27, as management acknowledged ongoing macro uncertainty and geopolitical instability.
ICICI Securities noted that deal bookings also declined year-on-year, with some closures reportedly slipping into Q2. The IT services margin stood at 16 per cent, a 100 basis points quarter-on-quarter drop, attributed to annual salary increases, the ramp-up of large deals, and investments in AI-related initiatives.
Analyst Reactions and Revised Targets
Brokerages reacted swiftly to Wipro's Q1 performance and cautious outlook:
- HDFC Institutional Equities stated that Wipro's "growth engine remains challenged, well-below the peer average, with no near-term respite or acceleration visible." They cut earnings estimates by 5 per cent and lowered their target multiple, resulting in a revised target price of Rs 195.
- Choice deemed the risk-reward for Wipro "unfavourable," cutting its target to Rs 170 from Rs 185. Wipro shares fell 1.6 per cent to Rs 174.95 apiece following the announcement.
- Elara Securities anticipated continued weak performance in key sectors like BFSI, Consumer, and Energy through FY27, projecting a 1 per cent dollar revenue decline for both FY27 and FY28. They pared their target for Wipro to Rs 160 from Rs 180.
- ICICI Securities maintained a 'Reduce' rating, setting a target of Rs 153, citing Wipro’s revenue growth lagging large-cap IT peers and suggesting weak execution.
- Axis Securities maintained a 'HOLD' rating, valuing the company at 13 times March 2028E EPS, with a target price of Rs 190/share, implying an upside of 7 per cent from the current market price (CMP). They highlighted unfavourable macro conditions, increasing competitive intensity, and higher AI-led investments as potential contributors to uneven profitability.
Market Impact and Future Outlook
On Friday, Wipro shares experienced a significant drop, hitting a low of Rs 173.05 apiece on the BSE. The consensus among analysts points to limited upside potential for the stock in the near term. The company faces ongoing challenges from a tough macroeconomic environment, intensified competition, and the need for sustained investment in emerging technologies like AI, which may strain margins.
Investors will be closely watching Wipro's ability to navigate these headwinds, improve deal conversion rates, and demonstrate a clear path to accelerated organic revenue growth in the coming quarters.