Wipro shares slip over 2% on muted Q1 show; check what analysts said

Wipro shares were trading in negative territory in the early deals on Friday, July 17, a day after the IT services company reported subdued numbers for the quarter ended June 30, 2026 (Q1 FY27).

The stock slipped as much as 2.35% to ₹173.55 on the NSE.

Analysts offer mixed views on Wipro following its June quarter (Q1 FY27) earnings amid concerns over weak growth and margin pressure.

Nomura said the company's revenue guidance for the September quarter was marginally below its estimates, while deal wins during the quarter remained weak.

However, the investment firm expects Wipro to gradually return to its target operating margin band of 17-17.5% over time. It also noted that the stock's FY27 estimated dividend yield of around 5% is likely to provide support.

Meanwhile, Jefferies said Wipro's Q1 performance disappointed due to a 140-basis-point sequential decline in margins and revenue guidance of -1.5% to +0.5% quarter-on-quarter in constant currency for the September quarter, which came in below expectations.

Jefferies also highlighted that Wipro has struggled to deliver organic revenue growth over the past three years and believes FY27 is unlikely to mark a turnaround. Reflecting the weaker outlook, it cut its FY27-FY29 revenue and profit estimates by 2-5%.

Jefferies expects Wipro to deliver an earnings per share (EPS) CAGR of around 5% over FY27-FY29. While it acknowledged the company's estimated 5% dividend yield, the investment firm said the combination of modest earnings growth and dividend returns does not offer an attractive risk-reward profile.

Here is a look at Q1 FY27 numbers

According to the company's press release, the IT firm reported gross revenue of ₹24,480 crore, up 1% quarter-on-quarter (QoQ) and 10.6% year-on-year (YoY).

Its IT services revenue stood at $2.61 billion, declining 1.4% QoQ but rising 1% YoY. In constant currency (CC) terms, IT services revenue fell 1.2% sequentially while increasing 0.9% from a year ago.

The IT services operating margin contracted to 16% in Q1 FY27 from 17.3% in the previous quarter and 17.2% a year ago. This means the figure decreased by 1.3% QoQ and 1.2% YoY.

Net profit for the quarter stood at ₹3,360 crore, down 4.7% quarter-on-quarter (QoQ) but up 0.6% year-on-year (YoY), the press release showed.

Earnings per share (EPS) for the quarter were ₹3.20, a decrease of 4.2% QoQ and an increase of 0.6% YoY.

Interim dividend details

Wipro's board has approved an interim dividend of ₹2 per equity share of face value ₹2 each for FY27. Shareholders whose names appear on the company's records as of July 27, 2026, will be eligible to receive the dividend.

The interim dividend will be paid on or before August 14, 2026.