Wipro’s stock is under pressure today, with the share price falling over 7% following the announcement of its Q3 FY26 results. While the headline numbers may look stable at first glance, the market reaction has been clearly negative. The key reason behind the decline is weak growth visibility and cautious guidance for the coming quarter, which has disappointed investors.
So, why Wipro share is falling today? Let’s break it down.
Q3 FY26 Financial Performance: Mixed Signals
Wipro reported revenue of ₹23,555.8 crore in Q3 FY26, registering a 3.8% growth quarter-on-quarter and a 5.5% increase year-on-year. On the surface, this suggests steady performance during the quarter.
However, profitability told a different story. Net profit came in at ₹3,145 crore, declining 3.9% sequentially and 7% compared to last year. This drop in profit despite revenue growth highlights ongoing margin pressure and cost challenges.
A bigger concern lies in constant currency performance. IT services revenue grew only 1.4% quarter-on-quarter in constant currency terms and fell 1.2% year-on-year. This indicates that underlying demand remains weak, and part of the reported growth was driven by currency movement rather than real business momentum.
This gap between reported revenue growth and weak constant currency performance is one of the main reasons why Wipro is falling today.
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Weak Growth Outlook Spooks the Market
The sharp reaction in Wipro’s share price is largely driven by its guidance for the March 2026 quarter. The company expects IT services revenue to be between $2,635 million and $2,688 million, implying sequential growth of just 0% to 2% in constant currency terms.
Such muted guidance signals that demand recovery remains slow and uncertain. Markets tend to price stocks based on future growth potential rather than past performance, and this cautious outlook has clearly dampened investor sentiment.
Deal Wins Slow Down
Another area of concern is the slowdown in deal activity. Total bookings for the quarter stood at $3.3 billion, down 5.7% year-on-year in constant currency terms. Large deal bookings were even weaker at $0.9 billion, declining 8.4% compared to last year.
Since deal wins are a key indicator of future revenue growth, lower bookings suggest that Wipro’s growth challenges could persist over the next few quarters. This has added to worries around medium-term visibility.
Pressure Across Key Business Segments
Performance across business segments remained uneven. Energy, Manufacturing and Resources reported negative growth, while the Consumer segment showed subdued momentum. BFSI continues to be Wipro’s largest revenue contributor, but overall demand across sectors has not been strong enough to drive meaningful growth.
This broad-based softness across segments has reinforced concerns about the pace of recovery.
What Worked in Wipro’s Favour
Despite the weak growth outlook, there were a few positives. Operating cash flow remained healthy at $474 million, and operating cash flow to net income stood at a strong 135.4%. Employee attrition also declined to 14.2%, which can help control hiring and training costs going forward.
However, these positives were not sufficient to offset concerns around growth, bookings, and guidance.
Key Takeaways for Investors
- Near-term growth visibility is weak, with management guiding only 0–2% sequential growth for the next quarter.
- Underlying demand remains soft, as reflected in weak constant currency growth.
- Deal momentum has slowed, with both total and large deal bookings declining year-on-year.
- Margins and cash flows are stable for now, but could face pressure if utilisation levels do not improve.
- Investors may need to remain cautious and watch for improvement in deal wins and revenue guidance before expecting a meaningful re-rating in the stock.
Bottom Line
Wipro’s share price is falling because the market is unhappy with its growth outlook. Weak constant currency growth, slower deal wins, soft demand across key segments, and cautious guidance have raised doubts about a near-term recovery. While cash flows and margins remain stable, investors are looking for clearer signs of demand revival, which are currently missing.For long-term investors using platforms like Appreciate, tracking global IT demand trends and future guidance will be key before making any fresh investment decisions, especially for those looking to start investing in US stocks from india to diversify their portfolios beyond Indian equities.
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