Infosys Limited (IN:INFY)
:INFY
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Infosys Limited
(INFY)
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Rating:69Neutral
Price Target:
₹1,279.00
â–¼(-22.04% Downside)
Action:DowngradedDate: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
Conservative balance sheet and high ROE
Low leverage and consistently strong ROE provide durable financial flexibility: the company can fund investments, acquisitions, dividends or buybacks without stressing liquidity. This capital structure reduces insolvency risk and supports multi‑year strategic execution even through cycles.
Negative Factors
Conservative near-term revenue guidance
Low guidance signals persistent demand headwinds and limited near-term contract expansion. Structurally, muted top-line growth compresses reinvestment capacity and raises pressure to offset slower organic growth through efficiency, pricing or acquisitions over the coming 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and high ROE
Low leverage and consistently strong ROE provide durable financial flexibility: the company can fund investments, acquisitions, dividends or buybacks without stressing liquidity. This capital structure reduces insolvency risk and supports multi‑year strategic execution even through cycles.
Read all positive factors
Infosys Limited (INFY) vs. iShares MSCI India ETF (INDA)
Market Cap
₹4.73T
Dividend Yield2.7%
Average Volume (3M)402.96K
Price to Earnings (P/E)14.8
Beta (1Y)0.84
Revenue Growth9.61%
EPS Growth11.08%
CountryIN
Employees300,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.82
Shares Outstanding4,055,623,300
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
₹1,707.86Price Target Upside4.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)77.12
Revenue Forecast (FY)₹1.94T
Infosys Limited Business Overview & Revenue Model
Company Description
Infosys Limited, together with its subsidiaries, provides consulting, technology, outsourcing, and next-generation digital services in North America, Europe, India, and internationally. It provides application development and management, independe...
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 16, 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 | 4.42B | 4.21B | 4.68B | 4.12B |
| 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
Positive
1640.65
Price Trends
1339.87
Negative
1477.27
Negative
1484.96
Negative
Market Momentum
-4.36
Negative
51.90
Neutral
45.44
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 1640.65 is above the 20-day moving average (MA) of 1286.26, above the 50-day MA of 1339.87, and above the 200-day MA of 1484.96, indicating a neutral trend. The MACD of -4.36 indicates Negative momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 45.44 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 58 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹8.81T | 15.55 | ― | 3.55% | 4.58% | 1.36% | |
70 Outperform | ₹3.23T | 20.22 | ― | 2.86% | 11.18% | -4.28% | |
69 Neutral | ₹4.73T | 14.83 | ― | 2.70% | 9.61% | 11.08% | |
68 Neutral | ₹2.09T | 14.04 | ― | 4.05% | 3.97% | 0.34% | |
67 Neutral | ₹1.28T | 21.36 | ― | 1.08% | 11.31% | 9.00% | |
65 Neutral | ₹1.44T | 22.66 | ― | 2.76% | 7.22% | 12.99% | |
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 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...
Infosys to Deepen Healthcare and Insurance Push With Twin U.S. Acquisitions
Mar 25, 2026
Infosys has announced board approval for the acquisition of Optimum Achieve Holdings, Inc., including Optimum Healthcare IT, a U.S.-based healthcare digital transformation and consulting firm, and Stratus Global LLC, an insurance consulting techno...
Infosys Forms New Australian Step-Down Subsidiary to Bolster Regional Presence
Mar 19, 2026
Infosys has completed the incorporation of a new step-down wholly owned subsidiary, Infosys Enterprise Business Services Pty. Ltd., in Australia, further expanding its footprint in the information technology and IT-enabled services space. The new ...
Infosys and Microsoft Power CSX Data Modernization at Scale
Feb 24, 2026
Infosys has completed a major data modernization program for U.S. rail freight operator CSX Corporation, deploying its AI-first Infosys Topaz platform alongside Microsoft Fabric and Microsoft Purview. The project, described as one of the largest s...
Infosys Publishes Transcript and Recordings from Investor AI Day 2026
Feb 24, 2026
Infosys has released the official transcript of its Investor AI Day 2026, held on February 17, 2026, and notified stock exchanges in India and the U.S. The company has also made the full audio and video recordings of the event accessible through i...
Infosys Expands Share Capital After Employee Stock Option Allotment
Feb 20, 2026
Infosys Limited has issued 716,314 new equity shares with a face value of ₹5 each following the exercise of Restricted Stock Units by eligible employees under its 2015 Incentive Compensation Plan and the Infosys Expanded Stock Ownership Prog...
Infosys Plans Series of U.S. Investor Meetings and Tech Conference Appearances
Feb 20, 2026
Infosys Limited has scheduled a series of investor interactions in late February and early March 2026, including non-deal roadshows and participation in major technology conferences in San Francisco, Boston, and New York, as well as virtual sessio...
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.