📉 Wipro Shares Downgraded After Weak Q1 Guidance: Analysts Turn Cautious

Wipro, one of India’s leading IT service providers, is in the spotlight again—but this time for not-so-positive reasons. After announcing its March quarter earnings, several brokerages downgraded the stock and cut their price targets, citing weak guidance for the upcoming quarter and cautious client behavior.

📊 What’s Happening With Wipro?

On Wednesday, April 16 (post-market hours), Wipro released its Q4 FY25 results. While the company’s constant currency revenue growth was within its guided range, it still missed analysts' expectations. Wipro posted a 0.8% revenue decline in constant currency terms, compared to a 0.2% decline expected by the Street.

Looking ahead, Wipro expects its revenue for Q1 FY26 to fall between $2,505 million and $2,557 million, signaling a decline of 1.5% to 3.5%. This cautious forecast has prompted a wave of concern from analysts.

📉 What Analysts Are Saying

🔹 Nuvama Institutional Equities

• Rating: Downgraded to Hold

• Price Target: Cut from ₹300 to ₹260
  Nuvama initially upgraded Wipro due to hopes of discretionary IT spending recovery and low valuations. However, with the macroeconomic outlook weakening and Wipro’s valuation now in line with peers like TCS and Infosys, they no longer see these advantages holding up.

🔹 Emkay Global

• Rating: Reduce

• Price Target: ₹260
  Emkay appreciated Wipro's deal intake and margins but flagged concerns about revenue miss and weak guidance. They also noted delays and pauses in client projects due to global uncertainties.

🔹 Bernstein

• Rating: Underperform

• Price Target: ₹200
  Bernstein believes the cautious client spending and Wipro’s underwhelming Q4 performance suggest a challenging year ahead. Their view is that Q1 FY26 guidance might indicate negative growth for the full fiscal year.

🔹 Nomura

• Rating: Buy

• Price Target: Cut to ₹280
  While still bullish, Nomura is also wary. They flagged that macro headwinds are impacting client decisions and margin expansion may not happen anytime soon.

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📈 Analyst Overview

Out of 45 analysts covering Wipro:

• 11 recommend Buy

• 15 say Hold

• 19 suggest Sell

The stock closed at ₹247.5 on Wednesday, up 1.5%, but is still down 23.5% from its 52-week high of ₹323. Over the last month alone, it has dropped 5%.

💡 What Does This Mean for Investors?

Wipro’s earnings show a company navigating tough times. Clients are holding back on spending, and the macroeconomic environment—especially in the US—is filled with uncertainty. While some brokerages are still optimistic in the long term, most agree that the near-term outlook is weak.

For retail investors, this is a signal to stay cautious. While Wipro’s dividend yield remains attractive at 4% for FY27, growth potential in the short term seems limited.

📢 Final Thoughts

Wipro's latest earnings report serves as a reminder that even tech giants are not immune to global uncertainties. Whether you're already invested or considering buying, this might be a good time to wait and watch.

Reference from:-https://www.cnbctv18.com/market/wipro-share-price-gets-a-downgrade-price-target-cuts-weak-q1-guidance-clients-cautious-q4-results-19590094.htm