Analysts Positive on Wipro Limited (WIT) Following Strong Q1 Earnings

With a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, Wipro Limited (NYSE:WIT) makes it onto our list of the 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds.

Following strong Q1 earnings, analyst sentiment improved, with firms like Morgan Stanley and Jefferies issuing bullish ratings on WIT. On July 18, 2025, Morgan Stanley increased its price target on the company from $3.07 to $3.30, maintaining an ‘Equal Weight’ rating. In addition to strong performance, the revision was driven by strong large-deal wins that are expected to drive its growth.

On July 17, 2025, Wipro Limited (NYSE:WIT) announced financial results for Q1 ended June 30, 2025.

Despite a 1.6% QoQ decrease, Wipro Limited (NYSE:WIT) reported revenue of $2.58 billion, an increase of 0.8% on a YoY basis. The IT services segment contributed significantly, seeing large deal bookings grow 131% YoY to $2.7 billion. Overall bookings went up by 50.7% YoY, reaching $5.0 billion.

Furthermore, Wipro Limited (NYSE:WIT) improved its operating margins by 0.8% on a YoY basis, taking them to 17.3%. Meanwhile, net income rose to $388.4 million, while operating cash flows were well-maintained at 123.2% of net income.

Adopting a cautious outlook due to macroeconomic uncertainties, Wipro Limited (NYSE:WIT) expects Q2 revenue between $2.56 and $2.61 billion.

By offering 24/7 cloud-managed services, Wipro Limited (NYSE:WIT) helps businesses optimize hybrid and public cloud environments for efficient, scalable operations through cost tracking, automation, DevOps, containers, and performance monitoring. It is included in our list of the best cloud stocks.

While we acknowledge the potential of WIT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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