Wipro shares rise 2% after Q2 results; Nomura sees 15% upside, retains Buy rating

Wipro's shares rose 4% after its Q2 revenue of 247.53 billion rupees ($2.61B) beat estimates. The company forecast Q3 revenue growth between -1.5% and +0.5% in constant currency, despite a 45% drop in total bookings. Analysts cited delayed deals and improving profitability as positive signs for future growth.

Wipro (WPRO) reported flat IT Services revenue growth in Q2FY27, beating estimates, with EBIT margin expanding to 16.5%. Bookings declined, but management expects Q3 deal closures to support Q4 revenue. Prabhudas Lilladher maintains a target of Rs 166, citing AI growth opportunities but noting weakness in traditional IT spending.

Wipro Ltd (WIT) reported Q2 2027 earnings with flat IT services revenue at $2.61B, up 0.6% YoY in constant currency. Operating margin increased to 16.5%, while net income fell 5% sequentially to INR32B. The company secured $2.6B in deal wins but provided Q3 guidance of -1.5% to +0.5% sequential growth. Key growth areas included Europe and APMEA, while healthcare declined due to US policy changes.

Wipro's ADRs rose 5% to a two-month high of $1.91 on October 15, despite a 4.6% quarterly profit decline. Revenue increased 1.1% quarterly and 9% yearly. IT services revenue grew 0.3% yearly. Deal bookings fell sharply. The company forecasts Q3 IT services revenue between $2,571M and $2,625M. CEO Pallia expects Q3 bookings to improve.

Wipro Ltd reported a 0.1% sequential revenue decline to $2.61B, driven by weakness in media, tech, and healthcare sectors. Tech Mahindra Ltd grew 1.99% sequentially to $1.69B, boosted by telecom clients. Both companies beat analyst estimates, but Wipro faced client-specific issues and slow healthcare growth. Tech Mahindra's CEO expressed optimism about market opportunities, while Wipro maintained its July guidance.

Wipro reported Q2 2027 IT services revenue of $2.61B, flat sequentially and up 0.6% YoY in constant currency. Operating margin improved to 16.5%. Growth was seen in Europe and APMEA, while Americas 1 declined due to healthcare softness. The company closed $2.6B in deals and expects Q3 revenue to be impacted by seasonal furloughs, guiding for -1.5% to +0.5% sequential growth.