Wipro Limited's stock price crashed after Q3 results. The share price of Wipro Limited, one of India’s leading IT services companies, plummeted on January 19, 2026. The downturn followed the company's earnings presentation for the third quarter (Q3 FY26) last Friday, which sent investors and analysts to the curb. Shares fell nearly 7–9 percent, trading between ₹243–249, and the abrupt decline ignited debate on Wipro’s investment thesis and its standing in the brutal IT market.
The net profit of Wipro as a group was ₹3,119 crore, which was down 4 per cent on last quarter’s figure and down 7 per cent on last year’s data. IT services revenue totaled ₹23,378 crore, representing a 3.3 per cent sequential increase yet not enough to meet market expectations. But despite an expansion that did not seem like it moved fast enough for analysts to have faith in the company’s capacity to keep pace with rivals such as Infosys and TCS. Brokerages raced to react to the announcement.
Wipro’s rating was downgraded by Morgan Stanley from “equalweight” to “underweight” and its price target was reduced from ₹270 to ₹242. The downgrade was driven by concerns on a softer deal conversion, margin risk and diminished visibility on strong growth in the near future. The move by a top global brokerage added to the stock’s push and continued selling by investors. The company’s guidance for next quarter helped drive the negative sentiment too.
Wipro set constant currency revenue growth at 0–2 percent for Q4, below analyst estimates of 1–3 percent. However, the cautious outlook indicated that Wipro may not be able to significantly boost growth rates in the short run relative to peers that have had better pipelines, along with a greater deal record.
Tech wise; Wipro’s share price slid below its 20‑day and 100‑day Simple Moving Averages (SMA). For traders, this was another symptom of weakness, since below these averages would usually be the sign momentum is negative. The lack of stronger signs, cautious guidance and technical signals have added up to a perfect storm, with the long tail down sharply.
Wipro is still a big player in India’s IT services sector. The company's global presence spans banking, healthcare and manufacturing sectors. Its long‑term strategy is to embrace digital transformation, cloud services and artificial intelligence. But investors’ immediate worry is if Wipro will be able to turn its pipeline of deals into constant revenue growth, and get margins back under control in a competitive market.
The drop in share prices could also be dangerous for short‑term traders who assume volatility will persist. Profit booking or holding new positions until things come to light might also be a better course of action. But long‑term investors may see Wipro differently. With a well-established brand, a wide range of clients and a commitment to innovation in technology, many investors, especially ones who are hopeful about the long‑term demand for IT services worldwide, have reason to remain invested. This is important to note because recovery may take time.
The larger scheme of affairs also counts. The global IT industry is facing cautious spending by clients in the face of economic uncertainty. These include projects on a larger scale being postponed; others focusing upon cost controls. This is negatively impacting revenue growth for service providers like Wipro. At the same time, India’s IT industry was being increasingly squeezed by fierce competition, and the likes of competitors usually won more deals or had growth momentum than Wipro did.
Last but not least, Wipro is proving to be a business with a real balancing act and their Q3 results and falling shares illustrate this issue. Morgan Stanley’s downgrade and weaker guidance stoked investor fears, and with it making it one of the most discussed stocks of the day. Hold or sell for investors is based on risk appetite and time frame. The short‑term risks will be unmistakable; however, Wipro’s long‑term prospects as a global IT services provider are also undiminished. But these quarters can only be so long as these investors can convince their money-churning numbers that the firm is doing better than expected.
