Wipro Stock Slips 2% As Muted Q1 Earnings, Weak September Guidance Disappoint Street Investors

Shares of Wipro Limited fell over 2% on Friday morning after India’s fourth-largest software services exporter reported disappointing operating margins and a cautious guidance band for the September quarter.

By 10:33 AM IST, Wipro was trading at ₹175.40 on the National Stock Exchange (NSE), down 1.32% from its previous close of ₹177.74. The IT stock opened weak at ₹173.55, which remained its intraday low for the first hour of trading.

The main reason for the stock's correction was a contraction in profit. Wipro’s IT services operating margin dropped by 130 basis points sequentially to 16%, down from 17.3% in the prior quarter. This marks the company's lowest operating margin configuration in nearly four years.

Chief Financial Officer Aparna Iyer stated that the compression stemmed heavily from annual employee wage hikes and investments for long-term digital growth. Management expects full margin recovery to take several quarters. Net profit for the June-ended quarter came in virtually flat, inching up just 0.6% year-on-year to ₹3,352 crore, missing standard Bloomberg and Reuters analyst estimates.

Subdued Q2 Revenue Guidance 

Compounding the margin stress, Wipro guided for constant-currency revenue growth between minus 1.5% and plus 0.5% for the July-September quarter. This outlook shows that global enterprise clients continue to hold back on discretionary tech spending amid macroeconomic uncertainties.

"Wipro's Q1 performance disappointed due to the 140-basis-point sequential decline in margins and revenue guidance that came in below expectations," brokerage firm Jefferies noted, adjusting its revenue and profit estimates downwards by 2-5% for the FY27-29 cycle.

Dividend Yield and Large Deal Order Book

Defending the company's capital allocation layout, Wipro’s board declared an interim dividend of ₹2 per equity share, establishing July 27, 2026, as the eligibility record date.

Despite a 2.4% sequential decline in overall bookings, large-deal inflows showed a bright spot. Large deal bookings increased by 12.9% quarter-on-quarter to secure $1.63 billion across 13 major client agreements. While research institutions like Nomura noted that a healthy 5% projected dividend yield will likely establish a hard technical floor for the stock price, near-term capital appreciation will remain capped until organic revenue lines pick up some pace.

Also read: Wipro Q1 Profit Flat At ₹3,356 Crore As Rising Expenses Hurt Margins