Wipro Share drops after growing concerns for the weak forecast flag for the first quarter

Bengaluru (Reuters) – Wipro’s share fell to 6.3% on Thursday after forecasting weakness in the June quarter. Analysts warn that the outlook signaled another tough year for the company as global technology spending is under pressure.

India’s fourth-largest IT exporter on Wednesday forecast revenue for the first quarter, falling sequentially between 1.5% and 3.5%, with CEO Srini Pallia saying “there’s a dramatic increase in uncertainty.”

“The first quarter guidance sets the stage for another challenging year after two years of revenue declines,” said analysts at Philip Capital, with others raising concerns that the outcome could derail turnaround efforts under the new CEO.

Paria was appointed CEO in April 2024 after his predecessor, Thierry Delaporte, suddenly left.

Several analysts said the company is likely facing a third year of revenue declines.

According to LSEG’s data compilation, at least nine of the 39 analysts covering stocks have downgraded their ratings, while 20 have lowered their price targets.

The average analyst rating remains “pending”, but the median price target has dropped by nearly 14% from a month ago to Rs 250.

“Wipro’s outlook was weaker than what the market had expected,” Bob Capital Markets said, adding that the weak start of fiscal year 2026 was “a harbinger of negative revenue growth for the third consecutive year.”

Wipro stock has fallen 5.5% as of 10:30am, falling 22.4% so far this year, outperforming the Nifty IT Index, which fell 24.8%.

The bigger rival Infosys fell 1.7% from the expected results later that day.

(Reporting by Ashish Chandra, Nandan Mandayam and Haripriya Suresh of Bengaluru, edited by Nivedita Bhattacharjee)