Want to see INFY full AI Analyst Report?
Top Page
Infosys
(NYSE:INFY)
Select Model
Select Model
Rating:75Outperform
Price Target:
$12.00
â–¼(-0.25% Downside)
Action:Reiterated
Date:07/28/26
INFY scores well primarily due to strong financial quality (low leverage, high ROE, resilient margins) and supportive shareholder return characteristics (attractive dividend yield with a reasonable P/E). The score is moderated by weak top-line momentum and cautious near-term outlook from the earnings call (reduced revenue guidance, pricing/volume pressure), plus a mixed technical picture with the stock still below longer-term moving averages.
Positive Factors
Resilient profitability
Sustained operating margins near 22% and net margins around 16–17% show strong cost discipline despite slower growth. This profitability provides resilience, supports continued investment in capabilities, and gives Infosys capacity to protect earnings through changing client demand.
Negative Factors
Muted revenue growth outlook
The reduced revenue outlook indicates that client demand, volumes, and discretionary technology spending remain restrained. Low expected growth can limit operating leverage and earnings expansion, while also making future performance more dependent on acquisitions and execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient profitability
Sustained operating margins near 22% and net margins around 16–17% show strong cost discipline despite slower growth. This profitability provides resilience, supports continued investment in capabilities, and gives Infosys capacity to protect earnings through changing client demand.
Read all positive factors
Infosys (INFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.16B
Dividend Yield4.83%
Average Volume (3M)17.17M
Price to Earnings (P/E)13.8
Beta (1Y)0.80
Revenue Growth-0.64%
EPS Growth5.69%
CountryUS
Employees328,062
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.82
Shares Outstanding4,058,276,600
10 Day Avg. Volume21,554,429
30 Day Avg. Volume17,170,167
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 Cap0.94
Enterprise Value/Revenue1.99
Enterprise Value/Gross Profit6.56
Enterprise Value/Ebitda7.87
Forecast
1Y Price Target
$11.10Price Target Upside-7.76% Downside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)0.8
Revenue Forecast (FY)$20.31B
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 makes money primarily by providing outsourced IT services and consulting under client contracts, with revenue recognized as it delivers services over time or upon completion of defined milestones, depending on contract terms. Key revenue s...
Infosys Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Neutral
Balanced outcome: the quarter showed clear strengths — strong AI momentum (8.2% of revenue and double-digit Q‑on‑Q growth), substantial large deal wins ($3.6B TCV, 61% net new), improved margins (21.1%) and very strong free cash flow ($955M) — but these positives were tempered by softer-than-expected volumes, a one-time program termination (~50 bps impact), pricing pressure from client productivity demands and a downward revision to revenue guidance (1.5%–3% CC). Management maintained margin guidance and emphasized long-term AI opportunity and a healthy pipeline, but near-term demand and macro uncertainty remain key risks.Positive Updates
Revenue Growth (Q1)
Revenue grew 2.4% year-on-year and 1% quarter-on-quarter in constant currency for Q1; reported revenue noted as $502 million for the quarter (1% sequential, 2.4% YoY in CC).
Negative Updates
Revenue Shortfall vs Expectations and Guidance Revision
Q1 revenue growth was lower than internal expectations; management revised FY '27 revenue guidance down to 1.5%–3.0% year-on-year in constant currency (new midpoint implies much lower organic growth after accounting for acquisitions).
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Growth (Q1)
Revenue grew 2.4% year-on-year and 1% quarter-on-quarter in constant currency for Q1; reported revenue noted as $502 million for the quarter (1% sequential, 2.4% YoY in CC).
Read all positive updates
Company Guidance
Infosys revised FY‑27 revenue guidance to 1.5%–3.0% year‑on‑year (constant currency) while maintaining operating margin guidance of 20%–22%; the guidance assumes ~1.7% revenue contribution from recent acquisitions, ~1% hit from a large European manufacturing client, and a 0.75%–1% headwind from a shift toward offshore. In Q1 the company reported revenue of $502m, +2.4% YoY and +1.0% QoQ (CC), AI services at 8.2% of revenue (double‑digit QoQ growth), large deal TCV of $3.6bn with 61% net new, operating margin of 21.1% (+20 bps QoQ), gross margin +60 bps, a one‑time ~50 bps revenue hit from a program termination, free cash flow $955m (16.5% of net profit), EPS INR 19.19 (+~15% YoY), cash & investments $3.9bn after >$1bn returned to shareholders, DSO 76 days, utilization (ex‑trainees) 84.9%, attrition 13%, headcount down 500, and plans for ~6,000 frontier engineers plus continued campus hiring (20,000 graduates); margin assumptions include wage hikes, AI investments and a 50 bps acquisition headwind partly offset by currency and Project Maximus tailwinds.Infosys Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.30B | 20.16B | 19.28B | 18.56B | 18.21B | 16.31B |
| Gross Profit | 6.15B | 6.08B | 5.87B | 5.59B | 5.50B | 5.32B |
| EBITDA | 5.13B | 5.11B | 5.07B | 4.97B | 4.71B | 4.53B |
| Net Income | 3.32B | 3.31B | 3.16B | 3.17B | 2.98B | 2.96B |
Balance Sheet | ||||||
| Total Assets | 16.36B | 16.45B | 17.42B | 16.52B | 15.31B | 15.55B |
| Cash, Cash Equivalents and Short-Term Investments | 3.12B | 3.75B | 4.51B | 3.35B | 2.36B | 3.23B |
| Total Debt | 923.00M | 967.00M | 962.00M | 1.00B | 1.01B | 722.00M |
| Total Liabilities | 6.68B | 6.61B | 6.17B | 5.92B | 6.09B | 5.56B |
| Stockholders Equity | 9.62B | 9.79B | 11.21B | 10.56B | 9.17B | 9.94B |
Cash Flow | ||||||
| Free Cash Flow | 3.82B | 3.73B | 4.09B | 2.88B | 2.53B | 3.06B |
| Operating Cash Flow | 4.11B | 4.04B | 4.35B | 3.15B | 2.85B | 3.35B |
| Investing Cash Flow | -337.48M | 10.00M | -361.00M | -708.00M | -218.00M | -1.00B |
| Financing Cash Flow | -4.59B | -4.49B | -2.88B | -2.12B | -3.29B | -3.33B |
Infosys Technical Analysis
Neutral
12.03
Price Trends
11.49
Negative
11.53
Negative
13.09
Negative
Market Momentum
-0.19
Negative
46.58
Neutral
36.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INFY, the sentiment is Neutral. The current price of 12.03 is above the 20-day moving average (MA) of 10.81, above the 50-day MA of 11.49, and below the 200-day MA of 13.09, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 46.58 is Neutral, neither overbought nor oversold. The STOCH value of 36.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $131.49B | 15.73 | 26.77% | 3.07% | 6.47% | 11.19% | |
77 Outperform | $5.77B | 10.10 | 22.91% | 2.13% | 6.89% | 11.22% | |
75 Outperform | $43.16B | 13.76 | 32.90% | 4.83% | -0.64% | 5.69% | |
74 Outperform | $26.88B | 12.81 | 14.94% | 2.18% | 5.64% | -5.39% | |
65 Neutral | $213.88B | 19.83 | 33.52% | 2.97% | 7.90% | 82.11% | |
65 Neutral | $16.72B | 12.81 | 15.58% | 5.10% | -0.12% | -7.87% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
INFY
Infosys
11.40
-4.58
-28.66%
ACN
Accenture
213.56
-22.43
-9.50%
CTSH
Cognizant
61.33
-4.45
-6.77%
G
Genpact
35.22
-3.86
-9.88%
IBM
International Business Machines
230.78
-38.37
-14.26%
WIT
Wipro
1.80
-0.84
-31.87%
Infosys Corporate Events
Infosys Posts Q1 FY27 Revenue Gain and Strong AI-Led Deal Wins, Trims Full-Year Sales Outlook
Jul 28, 2026
Infosys reported first-quarter fiscal 2027 revenue of $5.08 billion for the period ended June 30, 2026, representing 2.4% year-on-year growth in constant currency and 1.0% sequential growth, with AI-related revenue reaching 8.2% of the total. Oper...
Infosys Reports Stock Incentive Grants to Key Managerial Personnel in July 2026 Filing
Jul 28, 2026
Infosys disclosed that key managerial personnel acquired company securities under its stock option plans, as reported in a Form 6-K filed in July 2026. The filing, dated July 28, 2026, indicates that these transactions fall under existing employee...
Infosys Announces July 12, 2026 Retirement of Independent Director Michael Nelson Gibbs
Jul 13, 2026
Infosys Limited reported that Independent Director Michael Nelson Gibbs completed his second consecutive term and retired from the company’s Board of Directors effective end of day July 12, 2026. His departure concludes a multi-year tenure d...
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.