Wipro shares began with steep declines of more than 6% following the software giant’s dismal Q1 forecast. “Elevated levels of macro uncertainty due to tariffs, makes it difficult for it to report positive growth in FY26 – thus derailing its turnaround thesis,” the company claimed, putting on a very pessimistic front. On the basis of this guidance, brokers have identified their main concerns and reduced their earnings expectations for the stock.
Wipro’s poor Q1 guidance has put pressure on the whole IT team. Here are some of the main concerns raised by different brokerages when taking macro risks into account.
Nomura on Wipro: Cuts FY26 earnings target
The FY26 EPS target was lowered by 2-4% by Nomura, which is far lower than expected. In order to account for macro concerns, they have reduced the target price from Rs 300 per share to Rs 280 per share, even though they still maintain the Buy rating. “The FY26-27F EPS are 8-9% lower than Bloomberg consensus,” Nomura claims. Wipro’s FY27F dividend yield is 4% following a recent increase in the return of cash to shareholders under the updated capital allocation policy. At the moment, the stock is trading at 18.6x FY27F EPS.
Nuvama on Wipro: Downgrades to Hold
The stock was downgraded to Hold by Nuvama, which also changed the target price from Rs 300 per share to Rs 260. They claim that Wipro’s disappointing Q1FY26 outlook, which is a result of high macro uncertainty brought on by tariffs, makes it challenging for the company to produce positive growth in FY26, which undermines its turnaround narrative. Due to decreased growth forecasts, they have also reduced the FY26E/27E EPS by 3% and 3.7%, respectively.
