Wipro’s stock opened sharply lower Friday after the company reported quarterly earnings below expectations. Trading volume reached 1.22 million shares as investors reacted to adjusted earnings per share of $0.03, which missed consensus by $0.01. The gap-down opening reflected growing concerns over near-term growth prospects in key markets.

For the quarter, Wipro generated revenue of $2.59 billion, falling short of the $2.63 billion analysts had forecast. The company delivered a net profit margin of 15.06% and a return on equity of 15.80%, metrics that remained flat sequentially. Management cited client budget constraints in the communications and consumer verticals as headwinds to top-line performance.

Research houses have adjusted their stance on Wipro following the earnings miss. One prominent firm maintained a hold rating while another downgraded to hold from outperform. Overall, three analysts rate the stock as a hold and one as a sell. On the institutional side, State Street increased its position by 3.4%, now holding 22.8 million shares, while Millennium Management lifted its stake by 25.9% to 21.3 million shares. Collectively, hedge funds and institutions own just over 2% of the company’s equity.

Under IFRS, Wipro reported gross revenues of Rs 235.6 billion for the quarter ended December 31, 2025, representing sequential growth of 3.8% and year-over-year growth of 5.5%. IT services segment margin expanded by 90 basis points quarter-on-quarter to 17.6%. Net income stood at Rs 31.2 billion, down 3.9% sequentially. Adjusted for labor code changes, net income rose 3.6% sequentially to Rs 33.6 billion. The company forecasts IT services revenue between $2.635 billion and $2.688 billion for the current quarter, signaling flat to modest growth in constant currency terms.