Wipro Shares Tumble Over 6% Following Weak Q1 Outlook and Analyst Downgrades
6 Big Reasons Why 000 Shares Crashed After Weak Q1 Guidance
Wipro Share Price Plunges as Analysts React to Disappointing Forecast
Shares of Wipro Ltd. nosedived over 6% on Thursday, April 17, after the IT giant issued a weaker-than-expected revenue forecast for the April–June quarter (Q1 FY26). This prompted a wave of analyst downgrades and price target cuts, leading to a sharp sell-off on the stock exchanges.
The company’s cautious outlook, following its March quarter earnings, has raised serious concerns on Dalal Street about its near-term growth prospects. As a result, several brokerages downgraded the stock and lowered their price targets, citing macroeconomic challenges, sluggish client spending, and an overall slowdown in the IT sector.
Wipro's Q1 Guidance Raises Red Flags
Wipro guided for a sequential revenue decline of 1.5% to 3.5% in constant currency terms for Q1 FY26. This was below market expectations and raised immediate concerns about the company’s ability to generate growth amid global headwinds.
The company also highlighted issues such as:
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Cautious client behavior
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Delayed decision-making cycles
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Uncertain macroeconomic environment, especially in the US and Europe
This guidance came despite some positive developments like stable operating margins and improved performance in certain verticals.
Major Brokerages Slash Ratings and Targets
The reaction from analysts was swift and sharp. Here's how top firms responded:
Nomura
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Cut FY26 earnings estimates by 2-4%
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Lowered the target price to ₹280 from ₹300
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Highlighted muted deal wins and weakened demand
Nuvama Institutional Equities
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Downgraded Wipro to ‘Hold’ from ‘Buy’
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Revised the target price to ₹260
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Expressed concern over a potential YoY revenue decline
Motilal Oswal
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Maintained a ‘Sell’ rating
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Set a target price of ₹215
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Predicted a 1.9% YoY decline in FY26 revenue
These downgrades suggest that market experts see limited upside in the short to medium term for Wipro.
Stock Market Impact: Wipro Underperforms Peers
Following the negative sentiment:
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Wipro’s share price fell to ₹232.20, a 6.18% intraday drop
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The stock has now fallen 22% year-to-date in 2025
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In comparison, the BSE Sensex has only dipped 2.31% in the same period
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Wipro’s ADRs on the NYSE also slipped over 3%
This indicates that both domestic and global investors are becoming cautious about the stock’s future.
Ripple Effect on Indian IT Sector
Wipro’s guidance has also had a domino effect on the broader IT industry:
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The Nifty IT index dropped by 2.3%
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Major players like Infosys, TCS, and HCLTech also saw a decline in share prices
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Analysts expect more volatility in the sector as companies continue to face global demand pressures
With rising concerns over Trump-era tariffs, potential interest rate hikes, and geopolitical instability, IT spending is expected to remain subdued in the near future.
Investor Takeaway: Should You Stay or Exit Wipro?
For long-term investors, Wipro’s current price may look attractive. However, experts caution that until there is clarity on demand recovery and stronger deal wins, investing in Wipro carries short-term risks.
Some key things to watch for in the coming quarters include:
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Client budget visibility
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Growth in cloud and AI services
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New large-scale deal announcements
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Improved margin guidance
Until then, investors may prefer to adopt a wait-and-watch approach or consider stronger peers with better growth trajectories.
Conclusion
Wipro’s sharp decline has not only impacted its stock but also shaken investor confidence in the Indian IT sector. With multiple analysts cutting their ratings and price targets, the company will need to deliver strong execution and consistent performance in the coming quarters to regain trust.
