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Wipro Q4 Results Review: Price Target Cuts Mount After Q1 FY26 Revenue Guidance Cut
- Wipro's Q4 results showed a rise in net profit to Rs 3,588 crore, exceeding estimates, while the revenue guidance for Q1 FY26 was lowered to a degrowth of -3.5% to -1.5% amid macro uncertainties.
- Following the revenue outlook cut, several brokerages, including Goldman Sachs, CLSA, JPMorgan, and Jefferies, reduced their price targets on Wipro.
- Citi maintained a 'sell' rating on Wipro, citing uncertainties due to tariffs and challenging outlook for fiscal 2026, affecting segments like manufacturing, consumer, BFS, and Europe.
- BofA retained its 'underperform' rating on Wipro, emphasizing that the Q4 revenue and Q1 outlook were below expectations, with a focus on improving market shares in European segments.
- Investec reiterated a 'hold' rating on Wipro, forecasting a revenue decline in fiscal 2026, with healthcare being a major detractor and Europe contributing significantly to the revenue fall.
- Overall, Wipro's performance and outlook have led to price target reductions by various major brokerages, reflecting concerns about the company's growth trajectory in the near term.
- The uncertainties in the macro environment, along with challenges in discretionary spending and revenue declines across sectors, have impacted Wipro's stock outlook, prompting caution among analysts.
- Wipro's cash conversion remained strong, but the company's outlook for fiscal 2026 raises concerns about revenue growth and margin expansion, prompting adjustments in earnings estimates by analysts.
- Despite the positive net profit growth reported in Q4, Wipro's lower revenue guidance for the upcoming quarter has raised concerns among investors and analysts, leading to a reevaluation of price targets.
- The industry-wide uncertainties and challenges have contributed to a cautious sentiment towards Wipro's stock, prompting revisions in target prices and ratings by leading brokerages.
- The forecasted revenue decline, coupled with uncertainties in key segments and regions, has led to a mixed outlook on Wipro's performance, with analysts closely monitoring the company's market positioning and growth strategies.
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