Wipro Signals Soft Outlook as European Revenue Dips Amid Global Uncertainty

Wipro’s shares have experienced volatility recently, reflecting investor concerns over the company’s subdued guidance and challenging market conditions. On April 17, 2025, Wipro’s stock price hovered around ₹237, down approximately 4.3% from the previous close, as cautious outlooks weighed on sentiment.

Q4FY25 Results: Strong Profit but Soft Guidance

Wipro reported a net profit of ₹3,570 crore for Q4FY25, marking a robust 26% year-on-year increase from ₹2,835 crore in the same quarter last year. Gross revenue stood at ₹22,500 crore ($2,634 million), reflecting modest sequential and annual growth of 0.8% and 1.3%, respectively. Despite these solid numbers, the company’s guidance for Q1FY26 painted a cautious picture, forecasting a revenue decline of 1.5% to 3.5% in constant currency terms for its IT services business.

European Market Weakness and Global Uncertainty

The subdued outlook is largely driven by softness in key markets, particularly Europe and the Asia-Pacific, Middle East, and Africa (APMEA) regions. Analysts note that client caution around discretionary spending and large-scale transformation projects is impacting demand. While Wipro’s Capco unit delivered strong growth, the overall revenue softness in Europe has tempered expectations. The global macroeconomic environment, including tariff uncertainties and geopolitical tensions, continues to cloud the near-term outlook for IT spending.

Analyst Reactions and Price Targets

Centrum Broking downgraded Wipro to a ‘Reduce’ rating, lowering the target price from ₹291 to ₹250, citing persistent demand uncertainty. Nuvama and MOFSL also trimmed their FY26/27 earnings per share (EPS) forecasts by 3-4%, reflecting the weak Q1 guidance and ongoing softness in key verticals. MOFSL reiterated a ‘Sell’ rating with a target of ₹215, while Nuvama placed a ‘Hold’ rating with a target of ₹260.

Market Impact and Outlook

Wipro’s American Depository Receipts (ADRs) on the NYSE declined by over 3% following the earnings release, signaling investor apprehension in global markets. The cautious guidance and regional revenue softness have raised concerns about the company’s ability to sustain growth momentum in FY26. Market participants will closely monitor Wipro’s execution on large deal wins and margin management in the coming quarters to gauge recovery prospects.

Conclusion

While Wipro delivered a decent performance in Q4FY25, its cautious revenue guidance and weakness in the European market have tempered investor enthusiasm. The company’s stock is currently trading at ₹237. The global economic uncertainties and client spending caution pose challenges for near-term growth. 

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