Wipro ADRs Fall Over 2% As Company Flags Q1 IT Services Slowdown

American Depository Receipts (ADRs) of Wipro Ltd declined over 2% in early US trading after the company issued a weak outlook for the April-June quarter of the current fiscal for its core information technology (IT) services business.

The ADRs were trading at $2.22, down 2.22% from the previous session’s close, reflecting investor concerns around near-term growth.

Wipro Ltd shares ended 0.24% higher at ₹210.26 on the National Stock Exchange (NSE) ahead of the results announcement, slightly outperforming the broader market.

What Is Wipro’s Q1 Revenue Guidance?

The company expects IT services revenue to be in the range of $2,597 million to $2,651 million for the April–June quarter.

This equals sequential growth guidance of -2.0 to 0% in constant currency terms, implying that its main business segment is likely to shrink or perform flat. The outlook suggests continued softness in demand and limited near-term visibility.

What Is Driving The Weak Outlook?

Operational challenges appear to be weighing on performance. The company identified bottlenecks and inefficiencies in scaling operations, which normally occur when companies are trying to scale up the execution.

These challenges have already impacted key segments. It is worth mentioning that the Banking, Financial Services, and Insurance (BFSI) vertical reported a 1.3% sequential decrease in Q4, indicating slower ramp-ups.

According to the management, such execution related obstacles are expected to be experienced in the first quarter, which may still strain performance.

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How Did Wipro Perform In FY26?

The company had a mixed performance this year. Its total constant currency revenue grew by 4% per year to $9.9 billion, but its main core IT services revenue fell by 0.3% to $10,478.1 million, which shows that its core business is weak.

For the March quarter, Wipro reported steady improvement in profitability. Net profit went up 12.3% from last year to ₹3,501 crore, and revenue went up 2.9% to ₹24,236 crore.

The board also approved a ₹15,000 crore share buyback at ₹250 per share, signalling confidence in capital return.

Sources:

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