Wipro Expects Q3 IT Services Revenue to Grow Amid Strategic Initiatives and Robust Financial Health

Wipro projects Q3 IT Services revenue between $2.591 billion and $2.644 billion, highlighting strategic growth initiatives. The company has strong profitability margins and a solid balance sheet. Valuation metrics suggest the stock is trading near historical lows, offering potential value opportunities. Wipro's financial health is robust, with a 3-year revenue growth rate of 5.6% and operating margin of 16.8%.

IT services giant Wipro has issued its Q3 FY26 revenue guidance, projecting IT Services segment revenue between $2.591 billion and $2.644 billion. This translates to a sequential growth forecast of -0.5% to +1.5% in constant currency terms, Financial Express reported. The company has been emphasizing strategic growth initiatives, including investments in artificial intelligence (AI) and digital transformation solutions.

Wipro's financial health remains robust, with strong profitability margins and a solid balance sheet. The company reported a 1.13% year-on-year (YoY) rise in profit for Q2 FY26, along with a 30.9% surge in bookings, as Financial Express noted. The company's revenue growth rate over the past three years has been 5.6%, and the operating margin stands at 16.8%, Analytics Insight reported.

Despite the cautious revenue guidance for the upcoming quarter, Wipro's stock price has fallen sharply, dropping by 5.5% to Rs. 239.84 on October 17, 2025, Analytics Insight reported. This dip came despite the company's strong performance in deal wins and steady profit growth. Analysts remain divided on the stock's near-term horizon, with Nomura retaining a 'Buy' call and Jefferies reiterating an 'Underperform' rating, according to Analytics Insight.

The company's strategic emphasis on AI-led transformation is evident through its 'Wipro Intelligence' suite, which includes AI-powered platforms and solutions to drive enterprise automation and resilience, Millennium Post reported. Wipro's demand environment remains robust, with discretionary spends shifting towards AI-related projects, particularly in the banking, financial services, and insurance (BFSI) sector, as Millennium Post noted.

Wipro's financial health and strategic initiatives position the company well for future growth, despite the current market uncertainty. The stock's valuation metrics suggest it is trading near historical lows, potentially offering value opportunities for investors.