Why Wipro Share Price Fell Over 7% After Q3 FY26 Results

Wipro’s share price has fallen more than 7% today after the company announced its Q3 FY26 results. Even though there are some positives in the numbers, the market reaction has been negative. The main reason is weak growth visibility and cautious guidance for the coming quarter.

Financial performance

Wipro reported revenue of Rs 23,555.8 crore in Q3 FY26, up 3.8 percent quarter on quarter and 5.5 percent year on year. At a headline level, this suggests steady growth during the quarter.

However, profitability remained under pressure. Net profit stood at Rs 3,145 crore, down 3.9 percent quarter on quarter and 7 percent year on year. The decline in profit despite revenue growth points to margin and cost-related challenges.

More importantly, constant currency growth was weak. IT services revenue grew only 1.4 percent quarter on quarter in constant currency terms and declined 1.2 percent year on year. This shows that underlying business growth remains slow, and part of the reported revenue growth was supported by currency movement rather than strong demand.

This divergence between reported revenue growth and weak constant currency performance is a key reason behind the negative market reaction to Wipro’s Q3 results.

Muted growth outlook worries investors

The biggest trigger for the fall is Wipro’s guidance for the March 2026 quarter. The company expects IT services revenue in the range of $2,635 million to $2,688 million. This means sequential growth of only 0 to 2 percent in constant currency terms. Such low guidance suggests that demand remains uncertain and recovery is still slow. Investors usually focus more on future growth than past performance, which is why this outlook has disappointed the market.

Deal wins have slowed down

Another major concern is the slowdown in bookings. Total bookings for the quarter stood at $3.3 billion, down 5.7 percent year on year in constant currency terms. Large deal bookings came in at $0.9 billion, declining 8.4 percent year on year. Since bookings indicate future revenue, lower deal wins suggest that growth could remain weak in the coming quarters.

Pressure in key business segments

Some important business segments are under pressure. Energy, Manufacturing and Resources reported negative growth, while the Consumer segment also showed weak momentum. BFSI remains the largest contributor to revenue, but overall sector performance has not been strong enough to lift growth meaningfully. This mixed demand across sectors has added to investor concerns.

What worked in Wipro’s favour

There were some positives in the results. Operating cash flow remained strong at $474 million, and operating cash flow to net income stood at 135.4%. Attrition also declined to 14.2 percent, which helps reduce hiring and training costs. However, these positives were not enough to offset concerns around weak growth and cautious guidance.

Key takeaways for investors

• Wipro’s near-term growth outlook is weak, with management guiding only 0 to 2 percent sequential revenue growth for the next quarter, which limits upside in the short term.
• Revenue growth remains under pressure, as Q3 FY26 showed a year-on-year decline, indicating that a strong recovery in demand is still not visible.
• Deal momentum has slowed, with total bookings and large deal wins falling year on year, which could impact revenue growth in upcoming quarters.
• Operating margins and cash flows are stable for now, but lower utilisation levels may create margin pressure if growth does not pick up.
• Investors may need to stay cautious in the near term and watch for improvement in deal wins and revenue guidance before expecting a meaningful stock rerating.

Bottom line

Wipro’s share price is falling because the market is unhappy with its growth outlook. Weak revenue growth, lower deal wins, soft demand in key segments, and cautious guidance have raised doubts about near-term recovery. While margins and cash flows are stable, investors are looking for stronger and more consistent growth signals, which are currently missing.

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