Where Will Wipro Share Price be in 3 Years?

Wipro has long been a cornerstone of India's IT sector, but in recent years, it has lagged behind its peers due to slower growth.

The rapid rise of artificial intelligence, coupled with global economic uncertainties, has added new challenges for the industry, leaving companies like Wipro at a crossroads.

As competition increases and digital transformation accelerates, investors are becoming sceptical about the future of a traditional IT company like Wipro.

This editorial sheds light on what the company's share price might do over the next three years.

About the Company

Wipro is a leading global information technology (IT) services and consulting company.

With a presence in six continents, Wipro offers services across global business areas to better serve clients with customized, high-impact services.

This includes technology services that provide industry-specific technology solutions, business process services that include customer experience, and supply chain management.

It also offers consulting services that drive industry transformation and client value creation.

Its expertise spans industries such as banking, financial services and insurance (BFSI), energy, manufacturing and resources (EMR), healthcare, consumer, and technology and communications.

The company also provides engineering services that provides foundational technologies such as AI, 5G, and silicon chip engineering. Wipro has also started using an AI-first and AI-in-everything approach.

Steady Financial Performance in Q1FY26

Wipro's first-quarter financial performance was stable. Revenue in constant currency declined 2.3% year-on-year (YoY) to US$ 2.58 billion (bn), in line with its guidance.

In the revenue mix, the healthcare sector grew 3.5% as clients are investing in modernisation and digital transformation.

BFSI declined 3.5% YoY, but Wipro continues to see strong and stable demand as clients focus on AI-led efficiency and transformation.

In the consumer and energy sectors, consumer fell 5.7% YoY, and EMR fell 2.4% YoY driven by tariffs and global supply chain issues.

The technology and communications sector revenue grew 0.3% YoY. Wipro is also seeing a clear shift toward AI investments, where clients are innovating and making software and platforms future-ready.

Wipro Financial Snapshot

Particulars	Q1FY26	Q1FY25	Growth (%)
Revenue (Rs bn)	221.3	219.6	0.8
EBIT (Rs bn)	35.5	36.2	-2
Margins (%)	16.1	16.5	-46 bps
PAT (Rs bn)	333.6	300.3	10.9

Source: ICICI Securities

Geographically, Americas one revenue grew 5.8% YoY driven by strong deal momentum. However, Americas two revenue declined 2.7% YoY.

Europe's revenue declined sharply by 11.6% YoY as the region faced challenges and clients focused on gaining a competitive edge. Turnaround in Europe remains a key upside tailwind.

Wipro expects the Phoenix deal secured in Q4 FY25 to start contributing from Q3, which could reverse the slowdown. The company also says client-specific challenges are largely behind it.

Capco rose 6% YoY on the back of strong performance in Latin America and bookings of over US$ 1 bn in the last 12 months.

It reported strong growth in the Americas, Asia-Pacific, Middle East, and Africa. Insurance, wealth and asset management and the energy sector are seeing good progress. The pipeline also remains optimistic.

Cautious Guidance

Looking ahead, the company expects IT services revenue for Q2 FY26 to be in the range of US$ 2.5-2.6 bn.

Although it recorded slow growth, deal bookings remained strong. Wipro reported bookings rose 51% YoY to US$ 5 bn in total contract value (TCV). Large deal bookings increased by 131% YoY to US$ 2.7 bn, including 16 large deals and two mega deals.

In large deals, a global banking leader selected Wipro for technology transformation, including cloud, and data platform modernization, cyber resilience and the integration of AI.

Wipro has also signed a multi-year agreement with a leading global semiconductor company for product modernization focusing on AI and automation.

In addition, a major agreement has also been signed with a leading North American bank to incorporate Wipro's AI-powered global delivery in core banking and wealth management using framework.

Many of these strategic deals were driven by vendor consolidation, cost optimization, and accelerated AI, data, and modernization programs.

Strong bookings are expected to lead to better conversion into revenues starting second half.

However, margins may remain under pressure due to the increase in competitively priced deals and the initial investment in such deals.

Additionally, the deal pipeline is strong across various geographies and the management is focused on converting it into deal wins to accelerate revenue momentum.

Customers are accelerating their AI investments, particularly in data and modernization programs, with many AI projects moving from PoC to production.

AI at the Forefront

To capitalise on this demand, Wipro is also building an AI-first, AI-everywhere enterprise, focused on solving complex challenges and redefining operations.

It has deployed over 200 AI-powered agents for tasks such as more innovative loans, intelligent claims processing, and autonomous network management.

As per its capital allocation policy, Wipro plans to distribute at least 70% of its net income over a period of three years.

The company intends to pay dividends twice a year. Once during the June quarter results and then again during the December quarter results.

Valuations

From a valuation perspective, Wipro is trading at a price to earnings (PE) multiple of 19 times, which is lower than the 5-year median of 22 and industry PE of 28.

Valuation discount reflects near-term caution as the IT sector faces a slowdown and investors await clarity on AI-driven growth path. This is a key risk for traditional Indian IT players.

Conclusion

Wipro faces near-term challenges from slower growth in Europe and margin pressures.

Nonetheless, Wipro expects growth to be driven by strong deal volumes, accelerated AI adoption, and strategic initiatives from the second half of FY26.

With a strong pipeline and disciplined capital allocation, the stock is trading at a discount, which potentially provides a margin of safety.

Despite that, instead of relying only on hype, it's necessary to carefully analyse the company's fundamentals, including financial performance, corporate governance practices, and growth prospects.

Happy Investing.

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