Wipro Q1 FY26 Results: Profit -7% QoQ, Revenue -1.6%

What investors were bracing for before the results

Wipro’s first-quarter results for FY26 were closely watched after the company flagged a weak demand environment and guided for a sequential constant-currency (CC) revenue decline. Ahead of the numbers, expectations were for a subdued quarter driven by weak client spending, macro uncertainty, and continued pressure in Europe. Street estimates largely converged around a low single-digit sequential fall in revenue and a mild softening in margins.

In the run-up, consensus expectations cited a 1 percent to 3 percent QoQ CC decline near the midpoint of Wipro’s guidance range. A Bloomberg-based preview also pointed to EBIT margin slipping by around 20 to 30 basis points, with profit expected to fall about 9 percent to roughly ₹3,248-₹3,252 crore. That set a low bar for delivery, making commentary and guidance just as important as the headline print.

Headline numbers: revenue and profit in Q1 FY26

Wipro reported Q1 FY26 revenue of ₹22,134.6 crore, down 1.6 percent quarter-on-quarter, and marginally up 0.77 percent year-on-year. Net profit for the quarter was reported around ₹3,330 crore, reflecting a 6.7 percent sequential decline, while year-on-year growth was stated at 10.9 percent in one report and 11 percent in another. A separate brokerage note referenced PAT at ₹33 billion, which is ₹3,300 crore, broadly in line with the reported profit range.

On profitability, Wipro’s IT services EBIT margin stood at 17.3 percent for the quarter. One brokerage noted this was slightly below its estimate of 17.5 percent, while a preview had pegged Q1 margin closer to 17.1 percent, down from 17.4 percent earlier.

Constant currency performance and deal intake signals

On the operating side, Motilal Oswal reported IT Services revenue of $1.5 billion, down 2.0 percent QoQ in constant currency. It also highlighted an order intake of $1.9 billion, up 25.6 percent QoQ, with large deal total contract value (TCV) of $1.6 billion, up 51 percent QoQ.

Separately, another account of the quarter flagged strong deal wins worth $1.7 billion. Taken together, these datapoints reinforced the message that while near-term revenue remained pressured, deal momentum was a key support for sentiment.

Guidance update: Q2 FY26 range improves

Post the quarter, Wipro improved its guidance for the second quarter (July to September). The company now expects revenue to range from a 1 percent decline at worst to 1 percent growth at best in constant currency terms.

This came after the company’s earlier guidance for the June quarter had indicated a sequential revenue decline of 1.5 percent to 3.5 percent in constant currency terms. That earlier outlook had weighed on the stock and fed concerns about another year of muted growth.

How the stock reacted

Shares of Wipro rose after the results met street expectations. The stock climbed as much as 4.34 percent intraday to ₹271.9 per share, its biggest intraday gain since May 12. It later traded 2.6 percent higher at ₹267.5, while the Nifty 50 was down 0.25 percent at around 9:53 AM.

The reaction contrasted with an earlier sell-off seen when the company issued weak first-quarter guidance. In that episode, Wipro shares fell as much as 6.3 percent, and were down 5 percent at around 11:51 am IST, extending the year-to-date decline to 22.4 percent.

Brokerages: mixed calls despite the “beat”

Brokerage commentary stayed divided. Jefferies acknowledged the beat versus estimates and raised its EPS forecast by 2 percent, but maintained an “Underperform” rating with a price target of ₹235. It argued that limited earnings growth would require higher dividend yields over 5 percent to justify attractiveness, versus a cited current yield of 3 percent.

Morgan Stanley took a more constructive view on the quarter, noting that performance exceeded subdued expectations and that large deal wins could support growth in the second half. It raised its target price to ₹285 from ₹265 and maintained an “Equal Weight” stance, pointing to the need for sustained revenue improvement and margin challenges that could keep EPS expectations in check.

Macquarie was the most bullish among the set referenced, retaining an “Outperform” rating and a price target of ₹290.

Street expectations versus reported print

The quarter was described as marginally beating Bloomberg estimates. Revenue was expected at ₹22,078.3 crore and net profit at ₹3,249.4 crore, while reported revenue was ₹22,134.6 crore and profit was around ₹3,330 crore.

Trendlyne data cited an average target price of ₹256, implying nearly 2 percent downside from current levels at the time, with a consensus rating of ‘Hold’ from 43 analysts.

Key numbers at a glance

Price targets and ratings mentioned

Why the quarter matters for investors

The numbers reinforced two parallel themes that have shaped market positioning in Wipro. First, revenue remains under pressure, reflecting the weak demand and slower project decision-making that multiple previews linked to client price sensitivity, vendor consolidation, and challenges in Europe. Second, deal intake and large deal momentum are being treated as the early indicator to watch, especially when near-term growth is still muted.

Brokerage reactions reflected this trade-off. Where some focused on improving capital allocation and the better-than-feared print, others stayed cautious on valuation support and the lack of clear earnings acceleration. The improved Q2 CC guidance range became a notable incremental positive in this context, because it reduced the downside implied by the earlier Q1 outlook.

Conclusion

Wipro’s Q1 FY26 results landed broadly in line with expectations, with revenue at ₹22,134.6 crore and net profit around ₹3,330 crore, alongside an IT services EBIT margin of 17.3 percent. The stock responded positively as the company also improved its constant-currency revenue guidance for Q2 to a range of -1 percent to +1 percent. Going forward, the market’s focus is likely to remain on whether large deal wins and order intake translate into sustained revenue improvement while margins stay under pressure.