Wipro share price crashes 10% after Q3 results. Should you buy or sell?

Wipro share price slumped nearly 10% in Monday's trading session following the Q3 results announcement and weak guidance for the last quarter of the ongoing fiscal.

Wipro Q3 Results

The IT services company posted a 7% drop in consolidated net profit to ₹3,119 crore for the third quarter of FY26, impacted by one-time restructuring costs and the implementation of new labour codes.

Wipro experienced a one-time provisional effect of ₹302.8 crore due to the implementation of the new labour codes. The quarter from October to December also saw a one-off expense of ₹263 crore for Wipro due to a recently-completed restructuring initiative.

Wipro's operational revenue grew by 5.5% to ₹23,555.8 crore in Q3 FY26, compared to ₹22,318.8 crore during the same period last year.

In comparison to the previous quarter, Wipro’s profit decreased by 3.9%, while revenue increased by 3.7%.

For the quarter ending March 31, 2026, Wipro anticipates revenue from its IT Services division to fall between USD 2,635 million and USD 2,688 million, indicating a sequential growth of 0-2% in constant currency.

During the quarter under review, Wipro finalised the acquisition of HARMAN's Digital Transformation Solutions (DTS) business unit for USD 375 million (approximately ₹3,270 crore). HARMAN is a subsidiary of Samsung.

Wipro's CEO and Managing Director, Srini Pallia, stated that the company is preparing itself for a "world focused on AI," as artificial intelligence emerges as a crucial topic for boards of directors in global corporations.

The board of the company has announced an interim dividend of ₹6 for each share (with a face value of ₹2), with January 27 designated as the record date. The payment is expected to be made on or before February 14. This dividend will bring Wipro's total payout for the year to USD 1.3 billion.

Wipro Q3 results review

Sugandha Sachdeva, Founder of SS WealthStreet, said that Wipro’s Q3 FY26 results were mixed, with consolidated net profit declining 7% YoY and 3.9% sequentially, again largely due to the rollout of new labour codes.

According to Sachdeva, however, revenues grew 5.5% year-on-year and 3.8% QoQ, indicating steady improvement in execution. The company continues to scale its AI-led offerings through platforms such as WINGS and Vela, while expanding its global innovation ecosystem.

Nuvama Institutional Equities stated that Wipro’s weak deal wins, poor Q4 outlook, and seasonal factors in Q1 imply that growth will continue to be sluggish in the short term. Although margins are stable, they are expected to fall behind the overall growth in the industry. The brokerage's recommendation on Wipro stock remains ‘HOLD’ since attractive valuations restrict the potential for downside risk.

Motilal Oswal, in their analysis, indicated that they anticipate a 0.5% year-over-year constant currency revenue increase for FY26E, taking into account a slow beginning (with a 2.0% quarter-over-quarter decline in services revenue for Q1) and subdued guidance for Q4.

“We see limited room for margin expansion from current levels. We keep our estimates unchanged. We reiterate our Neutral rating on Wipro with a target price of ₹275, implying 20x FY28E EPS,” said Motilal Oswal.

Wipro share price today

Wipro share price today opened at an intraday high of ₹252.95 apiece on the BSE. However, the stock soon touched an intraday low of ₹241.75 per share.

Sugandha Sachdeva said that from a technical standpoint, after an extended period of correction and consolidation from the ₹237 lows, the stock has begun to trend higher. The support base has shifted upward to ₹250 from the earlier ₹228 zone, reflecting an improving price structure, she noted.

“A decisive breakout above ₹275 could pave the way for a medium-term move toward ₹325, keeping the outlook constructive though relatively gradual compared to peers,” said Sachdeva.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Wipro share prices reacted sharply to the recent results and guidance, opening with a gap-down and slipping nearly 7%. Although the stock has recovered part of the early losses from the day’s low of 241, it continues to trade lower by around 7%.

“In the near term, the counter is likely to remain an underperformer. Immediate resistance is placed in the 260–265 zone, while the 235–240 range is seen as a key support area,” said Bhosale.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.