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Infosys Limited
(INFY)
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Rating:69Neutral
Price Target:
₹1,096.00
▼(-33.20% Downside)
Action:Downgraded
Date:05/05/26
The score is anchored by strong financial quality (profitability, high ROE, and low leverage) and supportive valuation (reasonable P/E with a high dividend yield). These positives are tempered by clearly weak technicals (below key moving averages with negative MACD) and a cautious near-term growth outlook from the latest earnings call despite strong deal momentum.
Positive Factors
Balance-sheet strength
Infosys' conservatively financed balance sheet with very low leverage and high ROE provides durable financial flexibility. That strength supports investments, M&A, and capital returns while helping the firm withstand demand slowdowns and fund AI initiatives without overstretching liquidity.
Negative Factors
Conservative revenue outlook
Management's modest FY27 revenue guide and commentary on competitive intensity signal durable top-line headwinds. Slower growth forecasts reflect longer sales cycles, client spending caution and structural pricing pressure as AI-driven productivity may reduce billable hours in some services.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Infosys' conservatively financed balance sheet with very low leverage and high ROE provides durable financial flexibility. That strength supports investments, M&A, and capital returns while helping the firm withstand demand slowdowns and fund AI initiatives without overstretching liquidity.
Read all positive factors
Infosys Limited (INFY) vs. iShares MSCI India ETF (INDA)
Market Cap
₹4.06T
Dividend Yield2.7%
Average Volume (3M)402.96K
Price to Earnings (P/E)12.9
Beta (1Y)0.72
Revenue Growth9.61%
EPS Growth11.08%
CountryIN
Employees300,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.82
Shares Outstanding4,057,255,900
10 Day Avg. Volume365,556
30 Day Avg. Volume402,963
Financial Highlights & Ratios
PEG Ratio2.56
Price to Book (P/B)5.70
Price to Sales (P/S)2.77
P/FCF Ratio14.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,235.00Price Target Upside-24.72% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)77.28
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 providing services to enterprise clients under contractual arrangements, earning revenue largely from time-and-materials and fixed-price/managed-services engagements. Key revenue streams include (1) Consulting and ...
Infosys Limited Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Neutral
The call reflects a mix of positives and headwinds: strong large-deal wins, steady full-year growth (3.1%) and resilient margins (21%) alongside a clear AI strategy and production deployments. However, management issued cautious near-term revenue guidance (1.5%–3.5% for FY2027), noted AI-driven compression risks, acquisition/regulatory timing uncertainty, and sector-specific pressures (European auto/manufacturing). On balance, the company emphasizes its positioning for AI-led opportunities while acknowledging near-term margin and revenue headwinds.Positive Updates
Full-Year and Q4 Revenue Growth
FY2026 revenue growth was 3.1% year-on-year in constant currency; Q4 growth was 4.1% year-on-year in constant currency.
Negative Updates
Conservative Revenue Guidance and Competitive Pressure
FY2027 top-line guidance is modest (1.5%–3.5% YoY), citing continued competitive intensity and AI-driven productivity/compression that could pressure growth and pricing.
Read all updates
Q4-2026 Updates
Positive
Negative
Full-Year and Q4 Revenue Growth
FY2026 revenue growth was 3.1% year-on-year in constant currency; Q4 growth was 4.1% year-on-year in constant currency.
Read all positive updates
Company Guidance
Infosys guided FY‑27 revenue growth of 1.5%–3.5% year‑on‑year in constant currency and operating margin of 20%–22%; that outlook follows FY‑26 results of 3.1% full‑year growth (Q4 +4.1% YoY cc), a full‑year operating margin of ~21% (Q4 20.9%), and $14.9bn of large deals for the year ($3.2bn in Q4, +28% YoY and 55% net‑new); AI services were 5.5% of revenue in Q3 and higher in Q4 (not yet disclosed), Stratus (closed) adds ~25 bps to the guide while Optimum and a JV are not yet baked in, and the company noted margin puts/ takes this year including a 50 bps acquisition amortization hit, a 30 bps Q3 one‑off, ~20 bps comp impact, offset by ~40 bps currency benefit and ~30 bps from Maximus, with further acquisition‑related costs of ~60–70 bps expected; headcount was down ~8,000 sequentially but +5,000 YoY, and Infosys plans to hire at least 20,000 freshers in FY‑27.Infosys Limited Financial Statement Overview
Summary
Income Statement
80
Positive
Balance Sheet
88
Very Positive
Cash Flow
76
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.16B | 19.28B | 18.56B | 18.21B | 16.31B |
| Gross Profit | 6.08B | 5.87B | 5.47B | 5.50B | 5.32B |
| EBITDA | 5.11B | 4.85B | 4.77B | 4.68B | 4.42B |
| Net Income | 3.31B | 3.16B | 3.17B | 2.98B | 2.96B |
Balance Sheet | |||||
| Total Assets | 16.45B | 17.42B | 16.52B | 15.31B | 15.55B |
| Cash, Cash Equivalents and Short-Term Investments | 3.75B | 4.51B | 3.43B | 2.36B | 3.23B |
| Total Debt | 967.00M | 962.00M | 1.00B | 1.01B | 722.00M |
| Total Liabilities | 6.61B | 6.16B | 5.92B | 6.09B | 5.56B |
| Stockholders Equity | 9.79B | 11.21B | 10.56B | 9.17B | 9.94B |
Cash Flow | |||||
| Free Cash Flow | 3.73B | 4.09B | 2.88B | 2.53B | 3.06B |
| Operating Cash Flow | 4.04B | 4.35B | 3.15B | 2.85B | 3.35B |
| Investing Cash Flow | 10.00M | -361.00M | -708.00M | -218.00M | -1.00B |
| Financing Cash Flow | -4.49B | -2.88B | -2.12B | -3.29B | -3.33B |
Infosys Limited Technical Analysis
Negative
1640.65
Price Trends
1142.27
Negative
1230.03
Negative
1370.55
Negative
Market Momentum
-30.36
Positive
36.20
Neutral
11.99
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INFY, the sentiment is Negative. The current price of 1640.65 is above the 20-day moving average (MA) of 1116.30, above the 50-day MA of 1142.27, and above the 200-day MA of 1370.55, indicating a bearish trend. The MACD of -30.36 indicates Positive momentum. The RSI at 36.20 is Neutral, neither overbought nor oversold. The STOCH value of 11.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹7.36T | 14.94 | ― | 3.55% | 4.58% | 1.35% | |
70 Outperform | ₹2.91T | 17.35 | ― | 2.86% | 11.18% | -4.28% | |
69 Neutral | ₹4.06T | 12.90 | ― | 2.70% | 9.61% | 11.08% | |
67 Neutral | ₹1.05T | 20.89 | ― | 1.08% | 11.31% | 9.00% | |
65 Neutral | ₹1.38T | 25.88 | ― | 2.76% | 7.22% | 13.02% | |
65 Neutral | ₹1.79T | 13.51 | ― | 4.05% | 3.97% | 0.34% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Infosys Limited Corporate Events
Infosys to Engage Investors at CLSA GenAI Access Days
Jun 8, 2026
Infosys has notified stock exchanges that senior members of its management team will participate in CLSA India GenAI Access Days on June 15, 2026 via a virtual group meeting. The session will feature the Chief Delivery Officer, Chief Technology Of...
Infosys Sets Virtual AGM for June 23 and Proposes ₹25 Final Dividend
May 28, 2026
Infosys has announced that its 45th Annual General Meeting will be held on June 23, 2026, via video conference in line with regulatory circulars, with electronic distribution of the AGM notice and Integrated Annual Report to shareholders whose con...
Infosys Expands Share Capital With Employee Stock Allotment
May 23, 2026
Infosys Limited has increased its equity base by allotting 701,328 new shares of face value ₹5 each to employees exercising Restricted Stock Units under its 2015 Incentive Compensation Plan and the Infosys Expanded Stock Ownership Program 20...
Infosys Closes Optimum Healthcare IT Deal to Deepen Push Into Healthcare Digital Transformation
May 5, 2026
Infosys has completed its acquisition of Optimum Healthcare IT, a U.S.-based healthcare digital transformation and consulting firm recognized as a Best in KLAS provider. The deal strengthens Infosys’ domain capabilities with health systems a...
Infosys Publishes Q4 FY26 Earnings Call and Press Conference Transcripts
Apr 27, 2026
Infosys has notified stock exchanges that it has released the official transcripts of its press conference and earnings call held after the board of directors meeting on April 23, 2026. The company has also made the audio and video recordings of t...
Infosys Sets April 23, 2026 Date for Q4 and Full-Year Results
Apr 16, 2026
Infosys has scheduled the announcement of its fourth quarter and full-year results for the period ended March 31, 2026, on April 23, 2026, with the release timed for mid-afternoon in India and aligned with major global trading hours. The results w...
Infosys Promoter Confirms No Encumbrance on Over 6.1 Million Shares
Apr 9, 2026
Infosys disclosed that promoter group member Nikita Shibulal Manchanda, who held 6,106,302 equity shares as of March 31, 2026, has filed the annual declaration required under Regulation 31(4) of India’s takeover regulations. The filing confi...
Infosys Promoter Confirms No Encumbrance on 6.1 Million Shares
Apr 9, 2026
Infosys disclosed that promoter group member Milan Shibulal Manchanda held 6,106,302 equity shares in the company as of March 31, 2026. The company informed the stock exchanges that, according to his annual declaration, neither he nor persons acti...
Infosys Promoter Confirms No Encumbrance on 14.8 Million Shares
Apr 9, 2026
Infosys promoter Meghana Gopalakrishnan has filed her annual declaration with Indian stock exchanges under SEBI’s Substantial Acquisition of Shares and Takeovers Regulations, 2011. She confirmed that as of March 31, 2026, her holding of 14,8...
Infosys Promoter Confirms No Encumbrance on Shareholding in Annual SEBI Filing
Apr 9, 2026
Infosys disclosed that promoter Kumari Shibulal, who held 49,45,935 equity shares in the company as of March 31, 2026, has filed the annual declaration required under Indian takeover regulations. She confirmed that neither she nor persons acting i...
Infosys Promoter Confirms No Encumbrance on Shareholding in Annual SEBI Filing
Apr 9, 2026
Infosys disclosed that promoter group member Tanush Nilekani Chandra, who held 3,356,017 equity shares in the company as of March 31, 2026, has submitted his annual declaration under Indian takeover regulations. He confirmed that neither he nor an...
Infosys Promoter Declares 719,424 Shares Unencumbered Under SEBI Norms
Apr 9, 2026
Infosys Limited disclosed an annual declaration under Indian securities regulations stating that promoter group member Shray Chandra held 719,424 equity shares in the company as of March 31, 2026. The filing confirms that neither he nor persons ac...
Infosys Promoter Confirms No Encumbrance on 8.6 Million Shares
Apr 9, 2026
Infosys disclosed that company promoter Janhavi Nilekani, who held 8,589,721 equity shares as of March 31, 2026, has filed her annual declaration with Indian stock exchanges under SEBI’s substantial acquisition of shares and takeovers regula...
Infosys Promoter Nandan Nilekani Confirms No Encumbrance on Shareholding
Apr 9, 2026
Infosys has disclosed to Indian stock exchanges an annual declaration under takeover regulations, confirming the shareholding status of one of its key promoters. The filing underscores regulatory compliance around promoter holdings, a key aspect f...
Infosys Promoter Nihar Nilekani Confirms Shares Are Free of Encumbrances
Apr 9, 2026
Infosys disclosed that promoter Nihar Nilekani, son of co-founder Nandan Nilekani, has filed his annual declaration of shareholding with Indian stock exchanges as required under takeover regulations. He confirmed that his 12,677,752 equity shares ...
Infosys Promoter Rohini Nilekani Confirms No Encumbrance on 34.3 Million Shares
Apr 9, 2026
Infosys has disclosed an annual declaration from promoter Rohini Nilekani under SEBI’s Substantial Acquisition of Shares and Takeovers Regulations, confirming the status of her shareholding in the company. As of March 31, 2026, she holds ove...
Infosys Confirms SEBI Compliance on Demat and Remat Reporting for March Quarter
Apr 1, 2026
Infosys Limited has notified the stock exchanges that it has received a certificate from its registrar and share transfer agent, KFin Technologies Limited, confirming compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Reg...
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.