Wipro (WIPRO)
Why the stock moved
Turnaround plans gaining momentum with sequential revenue growth of 3.2% in Q3, first positive growth in 4 quarters.
In-depth analysis
Wipro's turnaround journey under new leadership is showing early signs of success. The company reported its first sequential revenue growth in four quarters, driven by improved client mining and deal wins. Focus on large deals and strategic accounts is bearing fruit with $1.1 billion in order bookings this quarter.
Key highlights
- Revenue Growth: 3.2% sequential growth, reversing 4-quarter decline
- Large Deals: $1.1 billion TCV in new bookings, highest in 6 quarters
- AI Practice: Launched AI360 with 50+ use cases across industries
- Operating Margin: 16.2%, up 50 bps QoQ despite investments
- Employee Morale: Attrition dropped to 14.8% from 22% peak
Outlook
Company aims for consistent sequential growth over next 4 quarters. Investment in sales and AI capabilities expected to drive top-line growth. Management targets 15-16% sustainable operating margin through automation and operational efficiency.
Risk factors
Execution risk on turnaround strategy. Market share loss in key accounts over past years needs to be recovered. Pricing pressure in traditional services could impact profitability.