It's been a pretty great week for Wipro Limited (NSE:WIPRO) shareholders, with its shares surging 13% to ₹184 in the week since its latest second-quarter results. Wipro reported in line with analyst predictions, delivering revenues of ₹248b and statutory earnings per share of ₹3.23, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Wipro's 40 analysts is for revenues of ₹992.9b in 2027. This would reflect a modest 2.3% increase on its revenue over the past 12 months. Statutory per share are forecast to be ₹13.25, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹990.1b and earnings per share (EPS) of ₹13.32 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Wipro
The analysts reconfirmed their price target of ₹176, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Wipro analyst has a price target of ₹226 per share, while the most pessimistic values it at ₹137. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Wipro's rate of growth is expected to accelerate meaningfully, with the forecast 4.7% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 3.7% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.3% per year. So it's clear that despite the acceleration in growth, Wipro is expected to grow meaningfully slower than the industry average.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Wipro going out to 2029, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Wipro that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.