Wipro Shares Drop on Weak Forecast Amid Growth Concerns
Shares of Indian IT giant Wipro fell 3 percent after the company issued a weak revenue forecast for the June quarter, intensifying concerns about slowing growth and persistent margin pressures. Wipro projected sequential revenue to decline by up to 2 percent or remain flat, citing muted demand from U.S. banking and financial clients amidst economic uncertainty. This outlook followed a disappointing fourth quarter where the firm missed both profit and revenue expectations. Although Wipro announced record share buyback plans, the negative guidance overshadowed this move, causing its U.S.-listed shares to drop nearly 5 percent overnight. Analysts from Dolat Capital and Ambit Capital highlighted entrenched organic growth challenges, noting that fiscal 2027 could mark the fourth consecutive year of revenue decline. Despite reporting $3.5 billion in deal wins, conversion into revenue remains delayed due to long-tenure contracts. Wipro has underperformed its peers significantly this year, with its stock shedding over 22 percent, driven by fears of AI-led disruption and ongoing demand uncertainties in the global IT sector.
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Wipro Shares Drop on Weak Forecast Amid Growth Concerns
Shares of Indian IT giant Wipro fell 3 percent after the company issued a weak revenue forecast for the June quarter, intensifying concerns about slowing growth and persistent margin pressures. Wipro projected sequential revenue to decline by up to 2 percent or remain flat, citing muted demand from U.S. banking and financial clients amidst economic uncertainty. This outlook followed a disappointing fourth quarter where the firm missed both profit and revenue expectations. Although Wipro announced record share buyback plans, the negative guidance overshadowed this move, causing its U.S.-listed shares to drop nearly 5 percent overnight. Analysts from Dolat Capital and Ambit Capital highlighted entrenched organic growth challenges, noting that fiscal 2027 could mark the fourth consecutive year of revenue decline. Despite reporting $3.5 billion in deal wins, conversion into revenue remains delayed due to long-tenure contracts. Wipro has underperformed its peers significantly this year, with its stock shedding over 22 percent, driven by fears of AI-led disruption and ongoing demand uncertainties in the global IT sector.
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