Wipro Earnings: Tough Macro Environment Drags on Revenue Growth; Cut Fair Value by 5%

Narrow-moat Wipro reported fiscal 2025 fourth-quarter results that fell short of our and consensus’ estimates for revenue and profitability. We view this as a short-term issue amid ongoing macroeconomic and geopolitical uncertainties but recognize the risks to near- to medium-term demand if conditions continue to deteriorate. Management gave conservative guidance for the upcoming quarter, citing restrained discretionary spending and project delays, and we have adjusted our estimates accordingly. As a result, we have reduced our fair value estimate to INR 229/$2.67 per share from INR 241/$2.78. We view the shares as slightly overvalued.