Overview:

• Wipro's Q2 FY26 profit increased 1.15% YoY to Rs. 3,246 crore, as revenue grew 2% to Rs. 22,697 crore.

• Big-ticket deal bookings reached $2.85 billion, beating FY25's total in six months.

• Analysts are still divided, Nomura remains bullish at Rs. 280, while Jefferies sees limited upside at Rs. 220.

Wipro share price fell sharply by 5.5% to Rs. 239.84 on October 17 at press time. The price dip came despite the IT giant recording a modest quarterly profit and strong deal wins for the second quarter of FY26. Wipro stock opened at Rs. 250 and hit an intraday low of Rs. 239.75 before closing near the day's bottom. The selling was despite mixed investor sentiment in the wake of muted revenue guidance for the December quarter. Let’s dive into a Wipro share price analysis based on Moneycontrol data. 

Wipro Q2 Results: Fractional Profit Growth, Strongest Bookings

Wipro's consolidated profit after tax for the quarter ended September 2025 rose 1.15% YoY to Rs. 3,246 crore from Rs. 3,209 crore in the corresponding period of the previous year, reports CNBC-TV18. Revenue from operations grew 2% YoY to Rs. 22,697 crore, below CNBC-TV18's estimate of Rs. 22,700 crore.

CEO Srini Pallia pointed out that Wipro's revenue momentum is strengthening on the back of growth recovery in APMEA and Europe. He further mentioned that operating margins have been stable at a tight range and bookings in the first half of FY26 crossed $9.5 billion, evidencing robust deal traction.

Pallia further stated that Wipro's strategic emphasis continues to be on AI-led transformation, spearheaded by its ‘Wipro Intelligence’ suite. The suite is a collection of artificial intelligence-based platforms and solutions to drive enterprise automation and resilience.

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Guidance and Operational Highlights

For the December 2025 quarter, Wipro is guiding its IT Services segment revenue to be between $2,591 million and $2,644 million, representing a sequential growth of (-0.5%) to (+1.5%) in constant currency terms. The guidance does not include any contribution from its most recent acquisition, Harman Digital Transformation Solutions.

CFO Aparna Iyer noted that three of Wipro's four strategic market units recorded sequential growth in the quarter. She also noted good operating cash flows, strong margins, and sustained large deal momentum. Wipro's large deal bookings for Q2 were $2.85 billion compared to $2.67 billion for Q1, and overall bookings for the first half of FY26 crossed the full-year performance for FY25.

Analyst Responses: Consensus View

Brokerages are yet divided on Wipro shares near-term horizon. Nomura has retained a 'Buy' call with a price target of Rs. 280 based on robust deal wins, managed margin control, and increasing operational stability. The brokerage said that Wipro's FY27 dividend yield of 4% and 19.8x PE valuation make it a compelling bet for long-term investors.

On the other hand, Jefferies reiterated an 'Underperform' rating with a target of Rs. 220, implying limited upside. It noted that, excluding a Rs. 120-crore one-off charge, Wipro's results were largely in line. Jefferies warned that margin pressure could emanate from continued deal ramps and new deals. It estimates a modest 3% EPS CAGR and 3% dividend yield FY26–28, implying a less attractive risk–reward profile despite better deal momentum.

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Valuation Parameters and Industry Outlook

At the price of Rs. 239.84, the Wipro share price has a market capitalization of Rs. 2.51 lakh crore. The stock is available at a TTM PE of 18.68 and P/B of 3.06, both of which are less than the sector average PE of 27.86, indicating relatively modest valuations. Dividend yield for Wipro stock is at 2.5%, and book value per share is at Rs. 78.57.
Wipro share price chart on Moneycontrol shows a loss of 5.45% as of 1.45 PM:

Although having strong fundamentals, investor sentiment is still defensive in the face of lackluster IT spending worldwide and macroeconomic uncertainty. The stock is trading near its 52-week low of Rs. 228, analysts believe Wipro's performance in future quarters, more so, margin expansion and AI-driven transformation. Thus, this will be the deciding factor in whether or not the stock is able to maintain upward momentum.

FAQs

1. Why did the Wipro share price decline after registering profit growth?

Even though it reported a rise in profit, Wipro's revenue growth and December quarter guidance were lower than anticipated. Market participants responded negatively to the subdued outlook, providing selling pressure.

2. What were Wipro's Q2 FY26 results' main highlights?

Wipro reported a Rs. 3,246 crore profit and Rs. 22,697 crore revenue, up 1.15% and 2% YoY, respectively. Wipro won strong deal wins worth $2.85 billion, indicating improved demand momentum.

3. What was Wipro's guidance for the upcoming quarter?

For Q3 FY26, Wipro is guiding IT services revenue of $2.59 billion to $2.64 billion, reflecting -0.5% to +1.5% sequential growth. This excludes its newly acquired Harman Digital Transformation Solutions.

4. What are the current analyst views on Wipro stock?

Analysts are divided: Nomura has a ‘Buy’ rating with a Rs. 280 target, highlighting strong deal wins, while Jefferies maintains an ‘Underperform’ with a Rs. 220 target, citing margin concerns and limited upside potential.

5. What should investors watch for in Wipro’s upcoming quarters?

Investors will watch how Wipro implements its AI-driven ‘Wipro Intelligence’ strategy, maintains operating margins, and achieves growth in strategic markets such as Europe and APMEA in the face of global IT spending vagueness.