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Infosys Limited
(INFY)
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Rating:77Outperform
Price Target:
₹1,310.00
▲(14.55% Upside)
Action:Reiterated
Date:10/24/26
The score is driven primarily by strong financial quality (high margins, strong ROE, low leverage) but tempered by sharply negative TTM revenue and free-cash-flow growth. Valuation is supportive (moderate P/E with a high dividend yield). The latest earnings call was constructive on AI and deal wins, but the lowered FY2027 growth guidance and pricing/margin headwinds cap upside. Technically, momentum is positive above key short- and mid-term averages, though still below the 200-day trend and with stretched stochastic readings.
Positive Factors
AI Revenue Expansion
Rapid AI revenue growth and increasing adoption indicate that Infosys is converting its AI capabilities into client demand and incremental business. This strengthens differentiation in enterprise transformation, supports future service relevance, and may create durable cross-selling opportunities as adoption expands.
Negative Factors
Low Revenue Growth Outlook
The lowered growth outlook signals that current demand is not sufficient to sustain the stronger expansion previously expected. Slower revenue growth can limit operating leverage, reduce the pace of earnings compounding, and make future performance more dependent on winning large contracts.
Read all positive and negative factors
Positive Factors
Negative Factors
AI Revenue Expansion
Rapid AI revenue growth and increasing adoption indicate that Infosys is converting its AI capabilities into client demand and incremental business. This strengthens differentiation in enterprise transformation, supports future service relevance, and may create durable cross-selling opportunities as adoption expands.
Read all positive factors
Infosys Limited (INFY) vs. iShares MSCI India ETF (INDA)
Market Cap
₹4.72T
Dividend Yield4.13%
Average Volume (3M)1.01M
Price to Earnings (P/E)20.6
Beta (1Y)0.89
Revenue Growth6.35%
EPS Growth11.51%
CountryIN
Employees328,594
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)56.57
Shares Outstanding4,058,276,600
10 Day Avg. Volume1,640,579
30 Day Avg. Volume1,014,224
Financial Highlights & Ratios
PEG Ratio1.62
Price to Book (P/B)5.77
Price to Sales (P/S)2.94
P/FCF Ratio15.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,250.00Price Target Upside9.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)76.66
Revenue Forecast (FY)₹1.95T
Infosys Limited Business Overview & Revenue Model
Company Description
Infosys Limited, through its global subsidiaries, delivers an extensive range of consulting, technology, outsourcing, and cutting-edge digital solutions across North America, Europe, India, and other international markets. Its diverse service port...
How the Company Makes Money
Infosys primarily makes money by charging enterprise clients for IT and business process-related services delivered under consulting engagements, project-based work, and long-term managed services/outsourcing contracts. A major portion of revenue ...
Infosys Limited Earnings Call Summary
Earnings Call Date:Oct 23, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 13, 2027
Earnings Call Sentiment Neutral
The call was balanced. Infosys reported strong AI momentum, significant large-deal wins, solid cash generation, stable operating margins, EPS growth, and a strong balance sheet. However, Q2 growth was below expectations, full-year revenue guidance was reduced to 1%-2%, pricing and volume were pressured, client spending remained cautious, and several verticals faced demand and client-specific challenges. The positive AI and deal trends were substantial, but the near-term operating environment and revised growth outlook kept the overall tone balanced.Positive Updates
AI Revenue Growth and Adoption
AI revenue grew 29% sequentially and increased from 8.2% of revenue last quarter to 10.5% of total revenue in Q2. Management said clients are expanding enterprise-wide AI adoption and that the AI revenue represents new revenue.
Negative Updates
Revenue Growth Below Expectations
Q2 revenue was $5.145 billion, up 1.2% sequentially and 1.5% year-on-year in constant currency terms, but management said growth was below expectations. H1 revenue growth was 1.9% in constant currency terms and 2.1% in reported terms.
Read all updates
Q2-2027 Updates
Positive
Negative
AI Revenue Growth and Adoption
AI revenue grew 29% sequentially and increased from 8.2% of revenue last quarter to 10.5% of total revenue in Q2. Management said clients are expanding enterprise-wide AI adoption and that the AI revenue represents new revenue.
Read all positive updates
Company Guidance
Infosys revised its FY 2027 revenue growth guidance to 1%-2% year-on-year in constant currency terms, with the lower end assuming further deterioration in macro and the upper end assuming improvements; its operating margin guidance remains 20%-22%, with H2 margins impacted by compensation hikes, softer revenue seasonality, continued sharing of AI-driven productivity benefits, and ramp-up of large deals, partly offset by Project Maximus. Effective tax rates for the year are expected to be in the range of 29%-30%, freshers hiring is targeted at approximately 20,000 for FY 2027, and the $2 billion-plus seven-year mega deal is expected to contribute over 1% growth for the company in FY 2028.Infosys Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.41T | 1.79T | 1.63T | 1.54T | 1.47T | 1.22T |
| Gross Profit | 425.09B | 470.40B | 429.31B | 402.56B | 388.85B | 344.84B |
| EBITDA | 327.15B | 429.00B | 397.72B | 369.79B | 356.47B | 319.02B |
| Net Income | 230.06B | 294.40B | 267.13B | 262.33B | 240.95B | 221.10B |
Balance Sheet | ||||||
| Total Assets | 16.99B | 1.53T | 1.49T | 1.38T | 1.26T | 1.18T |
| Cash, Cash Equivalents and Short-Term Investments | 3.96B | 348.83B | 385.65B | 286.11B | 193.74B | 244.71B |
| Total Debt | 885.74M | 89.90B | 82.28B | 83.51B | 82.95B | 54.72B |
| Total Liabilities | 6.64B | 614.17B | 527.20B | 493.21B | 499.98B | 421.43B |
| Stockholders Equity | 10.29B | 909.81B | 958.36B | 879.99B | 753.26B | 753.37B |
Cash Flow | ||||||
| Free Cash Flow | 252.45B | 347.06B | 349.64B | 240.19B | 208.11B | 231.52B |
| Operating Cash Flow | 274.18B | 375.51B | 372.14B | 262.35B | 234.31B | 253.50B |
| Investing Cash Flow | 24.06B | 929.71M | -30.88B | -59.00B | -17.90B | -76.16B |
| Financing Cash Flow | -410.76B | -416.97B | -245.90B | -176.35B | -270.03B | -251.98B |
Infosys Limited Technical Analysis
Positive
1143.65
Price Trends
1083.59
Positive
1093.85
Positive
1207.09
Negative
Market Momentum
29.14
Negative
64.52
Neutral
78.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INFY, the sentiment is Positive. The current price of 1143.65 is above the 20-day moving average (MA) of 1072.59, above the 50-day MA of 1083.59, and below the 200-day MA of 1207.09, indicating a neutral trend. The MACD of 29.14 indicates Negative momentum. The RSI at 64.52 is Neutral, neither overbought nor oversold. The STOCH value of 78.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:INFY.
Infosys Limited Risk Analysis
Infosys Limited disclosed 14 risk factors in its most recent earnings report. Infosys Limited reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Infosys Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ₹3.84T | 20.98 | ― | 4.23% | 12.76% | 7.96% | |
77 Outperform | ₹4.72T | 20.56 | ― | 4.13% | 6.35% | 11.51% | |
77 Outperform | ₹9.05T | 17.78 | ― | 4.47% | 9.92% | 4.39% | |
73 Outperform | ₹1.20T | 26.78 | ― | 2.64% | 14.67% | 7.26% | |
73 Outperform | ₹1.77T | 29.05 | ― | 2.82% | 13.60% | 23.11% | |
71 Outperform | ₹1.85T | 14.67 | ― | 4.28% | 8.22% | -1.14% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:INFY
Infosys Limited
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Infosys Limited Corporate Events
Infosys Foundation Reaches 2.5 Lakh Job Milestone in Springboard Livelihood Program
Oct 13, 2026
Infosys Foundation, the CSR arm of Infosys, has announced that its Infosys Springboard Livelihood Program has facilitated more than 2.5 lakh job offers across India since its launch last year, reaching the halfway mark toward its goal of creating ...
Infosys downplays impact of U.S. PERM application suspension
Oct 10, 2026
Infosys has issued a statement after the U.S. Department of Labor suspended new and pending Permanent Labor Certification applications for certain companies, including Infosys. The company said it welcomes working with U.S. authorities to address ...
Infosys expands Indore development center to boost AI, cloud and digital services
Sep 16, 2026
Infosys has expanded its Indore Development Center with a new 330,000-square-foot software development block, SDB-2, at the Super Corridor campus, strengthening its presence in Central India. The center, which already employs more than 3,300 peopl...
Infosys Opens Special Window for Transfer and Demat of Physical Shares
Aug 27, 2026
Infosys Limited has notified stock exchanges of a newspaper publication regarding a special window for the transfer and dematerialization of physical shares. The initiative follows a Securities and Exchange Board of India circular and keeps the wi...
Infosys Finacle Wins Investec Mandate for Multi‑Country Azure‑Based Banking Overhaul
Jul 30, 2026
Infosys Finacle, the banking platform business of Infosys, has been selected by Investec, a leading international bank and wealth manager, to modernize its operations across South Africa, the U.K., Mauritius and the Channel Islands using a cloud&#...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.