Infosys (INFY)
NYSE:INFY
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Infosys
(NYSE:INFY)
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Rating:71Outperform
Price Target:
$11.50
▼(-13.47% Downside)
Action:Reiterated
Date:06/19/26
The score is driven primarily by strong underlying financial strength (notably low leverage and solid profitability) and supportive valuation (high dividend yield with a reasonable P/E). These positives are tempered by weak technicals (below all major moving averages with negative momentum) and a cautious near-term growth outlook from the latest earnings call guidance.
Positive Factors
Balance sheet strength
Very low leverage and a conservatively financed balance sheet give Infosys lasting financial flexibility. That enables continued dividend and buyback capacity, opportunistic M&A, and the ability to invest through soft demand periods without stressing liquidity, supporting multi‑quarter resilience.
Negative Factors
Moderated FY27 revenue guidance
Conservative top‑line guidance signals weaker near‑term demand and slower organic expansion. Persistently low revenue growth compresses the compounding base for margins and free cash flow, making it harder to fund investments and sustain prior growth trajectories without either margin expansion or successful deal execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Very low leverage and a conservatively financed balance sheet give Infosys lasting financial flexibility. That enables continued dividend and buyback capacity, opportunistic M&A, and the ability to invest through soft demand periods without stressing liquidity, supporting multi‑quarter resilience.
Read all positive factors
Infosys (INFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$45.24B
Dividend Yield2.58%
Average Volume (3M)18.87M
Price to Earnings (P/E)14.4
Beta (1Y)0.79
Revenue Growth4.85%
EPS Growth6.19%
CountryUS
Employees300,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.82
Shares Outstanding4,057,255,900
10 Day Avg. Volume18,906,195
30 Day Avg. Volume18,867,715
Financial Highlights & Ratios
PEG Ratio1.77
Price to Book (P/B)5.52
Price to Sales (P/S)2.68
P/FCF Ratio14.46
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue2.39
Enterprise Value/Gross Profit7.91
Enterprise Value/Ebitda9.42
Forecast
1Y Price Target
$14.23Price Target Upside7.06% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)0.82
Revenue Forecast (FY)$20.58B
Infosys Business Overview & Revenue Model
Company Description
Infosys Limited, through its global network of subsidiaries, delivers an extensive portfolio of consulting, technology, outsourcing, and next-generation digital services spanning North America, Europe, India, and other international markets. The c...
How the Company Makes Money
Infosys primarily makes money by billing enterprises for IT and business services delivered under contracts that are typically structured as time-and-materials (charging for labor hours and expertise) and/or fixed-price or managed-services arrange...
Infosys Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presented a mix of solid operational execution and strategic positioning alongside measurable near-term headwinds. Positives include mid-single-digit organic revenue growth in constant currency, robust large-deal momentum ($14.9bn FY; $3.2bn Q4), a clear AI strategy with commercial platforms (Topaz Fabric, CoBolt) and partnerships (OpenAI, Anthropic), margin resilience at a ~21% operating margin, and continued investment in talent (20k+ freshers). Offsetting these are a moderated FY27 revenue guide (1.5%–3.5% cc), acknowledgement of AI-driven pricing compression and competitive intensity, acquisition regulatory delays (only Stratus closed; other deals pending), sector-specific pressures in manufacturing/European auto and a sequential headcount decline tied to softer volumes. Overall, management is confident in its AI opportunity, margin program, and large-deal pipeline, but has provided conservative near-term guidance reflecting uncertainty and structural shifts from AI.Positive Updates
Full-Year and Q4 Revenue Growth
Infosys reported FY26 revenue growth of 3.1% in constant currency and Q4 year-on-year growth of 4.1% in constant currency. Management noted these growth rates were achieved after absorbing ~1.0% lower third-party revenue and a ~70 basis-point impact from a lower on-site mix.
Negative Updates
Moderated FY27 Revenue Guidance
Management guided FY27 revenue growth at 1.5%–3.5% year-on-year in constant currency — a moderation versus recent growth — driven by a mix of competitive intensity, AI productivity impact (pricing compression), and measured assumptions about deal timing and regulatory-closing of acquisitions.
Read all updates
Q4-2026 Updates
Positive
Negative
Full-Year and Q4 Revenue Growth
Infosys reported FY26 revenue growth of 3.1% in constant currency and Q4 year-on-year growth of 4.1% in constant currency. Management noted these growth rates were achieved after absorbing ~1.0% lower third-party revenue and a ~70 basis-point impact from a lower on-site mix.
Read all positive updates
Company Guidance
Infosys guided FY‑27 revenue growth of 1.5%–3.5% year‑on‑year in constant currency with operating margins of 20%–22%; for FY‑26 it reported 3.1% CC full‑year growth (Q4 CC +4.1%) and a ~21% full‑year margin (Q4 20.9%). Large‑deal TCV was ~$14.9bn (~$15bn) for the year and $3.2bn in Q4 (55% of large‑deal revenue was net‑new; large deals were ~24–28% y/y higher). Management said AI services were ~5.5% of revenue in Q3 and are higher in Q4 (no absolute Q4 disclosure), citing a $300–400bn addressable AI market to 2030. One acquisition (Stratus) is closed and contributes ~25bps to guidance; Optimum and an Australian JV remain pending regulatory approvals and are not baked in. FY‑26 margin puts/ takes included a 50bps acquisition‑amortization headwind, a 30bps Q3 one‑off benefit, ~20bps comp headwind, offset by ~40bps currency benefit and ~30bps from Maximus; acquisition costs could add a further ~60–70bps headwind. Hiring: >20,000 freshers were onboarded in FY‑26 and the company expects to hire at least 20,000 freshers in FY‑27; headcount was down ~8,000 sequentially but up ~5,000 year‑on‑year. Management expects growth to accelerate in financial services and energy/utility/resources while flagging competitive intensity and AI‑driven productivity compression.Infosys Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
82
Very 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 | 5.59B | 5.50B | 5.32B |
| EBITDA | 5.11B | 5.07B | 4.97B | 4.71B | 4.53B |
| 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 | 3.35B | 2.36B | 3.23B |
| Total Debt | 967.00M | 962.00M | 1.00B | 1.01B | 722.00M |
| Total Liabilities | 6.61B | 6.17B | 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 Technical Analysis
Negative
13.29
Price Trends
12.46
Negative
13.42
Negative
15.20
Negative
Market Momentum
-0.30
Positive
31.36
Neutral
21.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INFY, the sentiment is Negative. The current price of 13.29 is above the 20-day moving average (MA) of 12.08, above the 50-day MA of 12.46, and below the 200-day MA of 15.20, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 31.36 is Neutral, neither overbought nor oversold. The STOCH value of 21.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INFY.
Infosys Risk Analysis
Infosys disclosed 14 risk factors in its most recent earnings report. Infosys 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 Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $20.71B | 9.35 | 14.79% | 1.46% | 6.55% | -3.10% | |
74 Outperform | $78.57B | 10.01 | 24.82% | 2.25% | 6.74% | -0.66% | |
72 Outperform | $234.13B | 21.74 | 35.54% | 2.21% | 9.67% | 94.28% | |
71 Outperform | $45.24B | 14.40 | 31.77% | 2.58% | 4.85% | 6.19% | |
68 Neutral | $4.00B | 10.66 | 10.67% | ― | 14.21% | -2.92% | |
66 Neutral | $20.09B | 14.52 | 15.03% | 2.78% | -0.55% | -3.97% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
INFY
Infosys
10.57
-6.98
-39.77%
ACN
Accenture
127.98
-159.52
-55.49%
CTSH
Cognizant
43.70
-31.43
-41.84%
EPAM
Epam Systems
76.64
-91.37
-54.38%
IBM
International Business Machines
249.10
-32.87
-11.66%
WIT
Wipro
2.39
-0.51
-17.59%
Infosys Corporate Events
Infosys Files Revised AGM Notice and 2025-26 Integrated Annual Report With SEC
Jun 1, 2026
On June 1, 2026, Infosys filed a Form 6-K with the U.S. Securities and Exchange Commission to furnish a stock exchange intimation dated May 30, 2026. The filing notifies investors of a revised notice for the company’s 45th Annual General Mee...
Infosys Files Form 6-K Notifying 45th AGM and 2025-26 Integrated Annual Report
May 29, 2026
Infosys disclosed that on May 29, 2026, it filed a Form 6-K with the U.S. Securities and Exchange Commission to furnish a stock exchange intimation concerning its 45th Annual General Meeting and the company’s Integrated Annual Report for the...
Infosys Shareholders Approve Independent Director Appointments via Postal Ballot
May 29, 2026
Infosys has reported the results of a postal ballot process concluded on May 24, 2026, in which shareholders and holders of American Depositary Shares voted electronically on board composition changes. The company said all resolutions received the...
Infosys Files Form 6-K on Outcome of April 30 Board Meeting
Apr 30, 2026
Infosys Limited, the Bengaluru-based global IT services and consulting firm, operates as a foreign private issuer in the U.S. markets, providing digital and outsourcing services to large enterprises across major global regions. The company is regu...
Infosys Tops $20 Billion in FY26 Revenue on AI-Led Deals, Sets FY27 Growth Guidance
Apr 29, 2026
Infosys reported its audited financial results for the quarter and year ended March 31, 2026, with full‑year revenue crossing the $20 billion mark and growing 3.1% in constant currency, supported by large deal wins totaling $14.9 billion and...
Infosys Files Form 6-K on Postal Ballot Notice Dated April 24, 2026
Apr 24, 2026
On April 24, 2026, Infosys Limited submitted a Form 6-K to the U.S. Securities and Exchange Commission as a foreign private issuer, reporting that it had notified stock exchanges of a Postal Ballot Notice. The filing, signed by Company Secretary A...
Infosys Announces FY 2026 Results, ₹25 Final Dividend and Audit, ESOP Changes
Apr 23, 2026
On April 23, 2026, Infosys reported its results for the quarter and year ended March 31, 2026, and furnished corresponding disclosures under IFRS and Indian Accounting Standards for investors in India and the United States. The board declared a fi...
Infosys Notifies Markets of Independent Directors’ Appointment and Re-appointment
Apr 20, 2026
Infosys said that on April 18, 2026 it informed stock exchanges of the appointment and re-appointment of independent directors to its board, and furnished the same disclosure to the U.S. Securities and Exchange Commission via a Form 6-K filed for ...
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.