Wipro Q1 Results Preview: Analysts See Muted Growth, Margin Pressure Likely

Wipro Ltd. is set to announce its financial results for the first quarter of the financial year ending March 2026 on Thursday, with analysts expecting subdued performance amid weak client spending and macro uncertainties. The focus will be on its revenue trajectory, margin movement, and Q2 guidance.

Most brokerages expect Wipro to report a sequential decline in revenue and operating performance, in line with the lower end of its earlier guidance of -3.5% to -1.5%. Analysts anticipate a soft quarter, driven by persistent weakness in European markets and limited demand recovery. Price sensitivity from clients, headwinds from vendor consolidation, and ongoing project ramp-downs are also expected to weigh on topline growth.

Guidance for Q2 will be closely watched, with most firms expecting a narrow range of -1.5% to +0.5% sequential revenue growth. Analysts also see potential downside risks to margins due to lower utilisation and limited pricing power in the current environment.

Wipro Q1 Results Preview (Bloomberg Estimates) (Consolidated, QoQ) 

• Revenue seen down 2% to Rs 22,094 crore from Rs 22,504 crore

• EBIT seen down 4% to Rs 3,779 crore from Rs 3,931 crore

• EBIT margin expected at 17.1% versus 17.4%

• Profit seen down 9% to Rs 3,252 crore from Rs 3,570 crore

Here is what analysts are expecting from Wipro in its Q1 results:

Goldman Sachs | Stock Rating: Sell | Price Target: Rs 247

• Expect Q1 revenue growth to be marginally higher compared to the mid-point of the guidance of -3.5% to -1.5% as we have seen no further deterioration in the macro

• Wipro mentioned in Q4 that weakness in Europe is likely to continue in Q1, but ramp-up of the Phoenix deal in H2 will likely aid growth

• Expect company to provide Q2 revenue guidance of -1.5% to +0.5% on a sequential basis

• Expecting margin to marginally decline due to revenue headwinds

• Expect headcount to decline, in line with the weakness in topline growth

JPMorgan | Stock Rating: Neutral | Price Target: Rs 260

• Expect soft quarter supported by FX with limited chances of guide-ups

• While signings are likely to remain tight, pressure from AI deflation is likely to filter through client demand for price cuts that is likely to keep revenue conversion light

• Revenues expectations raised by 2% due to cross-currency tailwinds driving 2% earnings upgrades across the financial years through financial year ending March 2028

• Continue to expect Wipro to lag peers on growth

PhillipCapital | Stock Rating: Neutral | Price Target: Rs 225

• Expect IT services CC revenue to decline by 2.7% on a sequential basis, within its guided range

• Expect margins to slightly moderate in Q1 due to weak topline and largely optimised levers

• Expect Wipro to guide revenue in constant currency terms at around 0.5–1.5% quarter-on-quarter

• Watch out for Q2 guidance, consulting outlook, deal win to revenue conversion comments, vertical outlook and margin outlook

HSBC | Stock Rating: Hold | Price Target: Rs 250

• Expect constant currency growth for Wipro at mid-range of its guidance

• Constant currency impact of positive 150 basis points should provide some cushion for dollar revenue

• Expect EBIT margin to fall by 45 basis points on a sequential basis, adversely impacted by lower utilisation and rupee appreciation

• Key focus areas would be the outlook on Europe, Capco business amid the policy uncertainty in the US and Wipro's large-deal pipeline will be the key

Motilal Oswal | Stock Rating: Sell | Price Target: Rs 230

• Expect 2.5% decline in revenue in constant currency terms in IT service business as deterioration in client spends was observed as of Q4

• Margin is likely to stay in a tight range at around 17.5%, with potential pressure arising from a challenging revenue environment and pricing constraints in vendor consolidation engagements

• Ongoing client-specific challenges and project ramp-downs may keep Europe under pressure

• New leadership execution and a major deal ramp-up in H2 may offer some respite