Wipro delivered its Q3FY26 financial results, showing steady growth in IT services revenue amid mixed performance across key operational metrics. The technology services company reported results that were largely in line with analyst expectations, though certain areas showed sequential decline.

Financial Performance Overview

The company's Q3FY26 performance reflected moderate growth in core revenue streams alongside stable profitability metrics:

The IT services revenue of $2.60 billion represented a 1.4% quarter-on-quarter growth in constant currency terms, meeting analyst estimates of 1.5% QoQ growth. This performance indicates steady momentum in the company's core technology services business.

Order Book and Deal Pipeline

Wipro's order intake dynamics presented a mixed picture during the quarter. The company secured total order intake of $3.30 billion, marking a significant 30% decline from the previous quarter. Large-deal total contract value (TCV) stood at $0.90 billion, representing a 6.2% year-on-year decline.

Profitability Metrics

The company maintained healthy profitability levels with adjusted EBIT margin at 16.50%, slightly above the estimated 16.4%. Adjusted profit after tax reached ₹34.00 billion, showing a 3.6% quarter-on-quarter increase while remaining flat year-on-year. This figure excludes a one-time impact related to labor codes amounting to ₹3,028 million.

Analyst Outlook and Rating

Motilal Oswal has maintained its neutral stance on Wipro, setting a target price of ₹275. This target implies a valuation of 20 times the estimated FY28 earnings per share. The brokerage emphasized that further improvement in execution capabilities and stable conversion of deal TCV to revenue will be crucial factors for developing a more constructive investment view.

The research house's cautious approach reflects the need for sustained operational improvements and better deal conversion metrics before upgrading their recommendation on the stock.

Wipro and LTIMindtree have seen their stock rallies under new leadership quickly evaporate as investors responded negatively to recent quarterly results, despite both companies beating revenue expectations. The sharp declines highlight broader challenges facing India's IT sector, including AI-led automation pressures and tariff uncertainty that continue to weigh on growth prospects.

Wipro's Steep Decline Despite Revenue Beat

Wipro's stock performance tells a dramatic story of investor sentiment shifts. From April 7, 2024, when Pallia took over as chief executive, to January 16, 2026, the stock had gained 10.16%. However, this rally quickly reversed following the company's December-quarter results announcement.

The company reported $2.64 billion in revenue, up 1.20% sequentially and beating analyst expectations. Despite this positive surprise, the stock plunged 8.00% when markets reopened on Monday and declined another 1.30% by 11:15 am on Tuesday, taking the total decline to 9.30% in less than two trading sessions.

Factors Behind Wipro's Investor Concerns

Three primary factors contributed to the stock's decline: tepid growth outlook, weak organic growth expectations, and delayed deal ramp-ups. Management provided fourth-quarter revenue guidance of $2.64-2.69 billion, implying a potential decline at the lower end of the range.

ICICI Securities analysts highlighted concerns about organic growth, noting that "Wipro guides for 0-2% QoQ CC revenue growth for Q4FY26, lower than current quarter sequential growth at mid-point. Q4 growth could be aided by a two-month incremental contribution of around 1.60% from the Harman DTS acquisition, implying weak organic growth of -1.60% to 0.50% QoQ CC."

Aparna Iyer, Wipro's chief financial officer, acknowledged delays in large deal ramp-ups during the January 16 post-earnings call, stating that "some of the other deals, given the nature of the deals that we have won, we have earlier also highlighted that these deals will take a few quarters to ramp up."

LTIMindtree Faces Similar Investor Punishment

LTIMindtree experienced a parallel situation, though to a lesser extent. From May 31, 2025, when Lambu became chief executive, to January 19, 2026, the company's shares had risen 26.36%. The company then announced strong quarterly results with $1.21 billion in Q3 revenue, up 2.40% from the preceding quarter, marking its best third-quarter performance in three years.

Despite the strong performance, investors remained displeased, causing shares to fall 7.30% between Monday and 11:15 am on Tuesday, wiping off more than a fourth of the gains since Lambu's appointment.

AI-Led Disruption in Key Accounts

Motilal Oswal Financial Services analysts attributed much of LTIMindtree's decline to AI-induced challenges in top client accounts. They noted that "AI-led productivity initiatives at large clients continue to affect near-term growth, particularly within the top five accounts. However, the intensity of this impact appears to be moderating, with four of the top five clients having largely completed their productivity programs."

Broader IT Sector Challenges

The individual company struggles reflect wider sectoral headwinds. The Nifty IT index dropped 0.50% to 25,469.45 points as of 11:45 am on Tuesday, driven by uncertain outlooks from major IT outsourcers. Four of India's largest IT services companies are heading into the final quarter with weaker full-year trajectories compared to the previous year.

This challenging environment points to a third consecutive year of sluggish growth for India's IT majors, as automation, AI-led pricing pressure, and tariff uncertainty continue to cloud demand visibility across the sector.