Infosys Limited (INFY) AI Stock Analysis

• Market Cap: ₹7.02T
• Dividend Yield: 2.7%
• Average Volume (3M): 402.96K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.87
• Revenue Growth: 7.90%
• EPS Growth: 4.28%
• Country: IN
• Employees: 300,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 16.14
• Shares Outstanding: 4,154,668,000
• 10 Day Avg. Volume: 365,556
• 30 Day Avg. Volume: 402,963
• PEG Ratio: 0.00
• Price to Book (P/B): 6.62
• Price to Sales (P/S): 3.85
• P/FCF Ratio: 18.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,734.00
• Price Target Upside: 5.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹1,783.00 ▲(8.68% Upside)

The score is driven primarily by strong financial quality (solid margins, low leverage, high ROE) and a supportive earnings update (guidance raise, strong deal momentum, healthy adjusted margins and cash flow). Offsetting these strengths are a mixed technical picture with weak near-term momentum and only moderate valuation support.

Positive Factors

Strong profitability and conservative balance sheet

High operating and net margins combined with very low leverage and consistently strong ROE indicate durable earnings power and conservative capital structure. This supports resilient cash generation, investment capacity and strategic optionality for M&A or shareholder returns over the medium term.

Large-deal momentum and enterprise contract wins

Substantial large-deal signings materially improve revenue visibility and deepen strategic client relationships. Big enterprise contracts (like the NHS win) create multi-year revenue streams, cross-sell opportunities and higher switching costs, strengthening Infosys' position in key verticals over the coming years.

Material AI traction across major clients

Broad AI adoption by top clients and large-scale project delivery build durable differentiation: proprietary methodologies, IP and platform capabilities (Topaz) enhance stickiness and expand addressable services. This structural shift supports higher-value, recurring engagements in software and AI engineering.

Negative Factors

India labor-code charge and ongoing wage headwind

Regulatory-driven compensation costs create a structural, recurring margin headwind. Even a modest ongoing hit compresses operating profitability over time, forcing cost offsets or pricing adjustments and reducing the margin buffer available for reinvestment or payout policies.

TTM free cash flow decline and cash-flow volatility

A recent drop in trailing free cash flow and uneven operating cash conversion suggest working-capital or timing volatility. Less predictable cash generation can constrain M&A pacing, share returns and capital allocation, reducing financial flexibility across business cycles.

Utilization pressure from large fresher hiring

Aggressive campus hiring supports long-term talent availability but depresses billed-utilization and margins while trainees ramp. If intake and training timelines remain extended, sustained utilization drag could weigh on operating margins and near-term profitability until these cohorts are fully productive.

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, independent validation, product engineering and management, infrastructure management, enterprise application management, and support and integration services. The company's products and platforms include Finacle, a core banking solution; Edge suite of products; Infosys Nia, an artificial intelligence platform; Infosys McCamish - an insurance platform; Wingspan, a customizable learning platform; Stater mortgage servicing platform; Panaya automation suite; and Skava, an e-commerce suite. The company serves clients in the financial services and insurance, life sciences and healthcare, manufacturing, retail, consumer packaged goods and logistics, hi-tech, communications, telecom OEM, media, energy, utilities, resources, services, and other industries. It has collaboration agreements with Rolls-Royce, BP plc, Newmont Corporation, RXR Realty, Majesco Limited, and Centre for Accessibility Australia; and a strategic partnership with The Economist Group Limited to enable and enhance sustainability solutions through a business-to-business model. The company was formerly known as Infosys Technologies Limited and changed its name to Infosys Limited in June 2011. Infosys Limited was incorporated in 1981 and is headquartered in Bengaluru, India.

How the Company Makes Money

Infosys generates revenue primarily through its IT services and consulting offerings, which include software development, maintenance, and support services. The company operates on a time-and-materials and fixed-price model, allowing for various billing structures based on client needs. Key revenue streams include large enterprise contracts, project-based work, and long-term managed services agreements. Significant partnerships with major technology providers, such as Microsoft and Amazon Web Services, enhance its capabilities and market reach, contributing to earnings through co-developed solutions and joint go-to-market strategies. Additionally, Infosys's focus on emerging technologies and digital transformation enables it to tap into new client segments and increase its service offerings, further driving revenue growth.

Infosys Limited Financial Statement Overview

Summary

Strong overall fundamentals: high profitability (net margin ~16%, healthy EBIT/EBITDA), very low leverage (debt-to-equity ~0.06) with strong ROE (~30%), and solid cash generation (FCF to net income ~0.93). Cash flow growth is positive but noted as an area with room to improve.

Income Statement

Infosys Limited demonstrates strong profitability with a consistent gross profit margin around 30% and a net profit margin of approximately 16%. The company has shown solid revenue growth, particularly in the TTM period, indicating robust business expansion. EBIT and EBITDA margins are healthy, reflecting efficient operational management. Overall, the income statement reflects a stable and growing financial performance.

Balance Sheet

The balance sheet of Infosys Limited is strong, characterized by a low debt-to-equity ratio of approximately 0.06, indicating low financial leverage and a conservative capital structure. The return on equity is impressive at nearly 30%, showcasing effective use of shareholder funds. The equity ratio is solid, reflecting a strong asset base supported by equity. Overall, the balance sheet indicates financial stability and low risk.

Cash Flow

Infosys Limited's cash flow statement shows positive trends with a healthy free cash flow to net income ratio close to 0.93, indicating efficient cash generation relative to earnings. The operating cash flow to net income ratio is also strong, reflecting good cash conversion. Free cash flow growth is positive, supporting future investments and shareholder returns. Overall, the cash flow position is robust, though there is room for improvement in cash flow growth rates.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.28B	18.56B	18.21B	16.31B	13.56B
Gross Profit	5.87B	5.47B	5.50B	5.32B	4.61B
EBITDA	4.42B	4.21B	4.68B	4.12B	4.06B
Net Income	3.16B	3.17B	2.98B	2.96B	2.61B
Balance Sheet
Total Assets	17.42B	16.52B	15.31B	15.55B	14.82B
Cash, Cash Equivalents and Short-Term Investments	4.51B	3.43B	2.36B	3.23B	3.75B
Total Debt	962.00M	1.00B	1.01B	722.00M	728.00M
Total Liabilities	6.16B	5.92B	6.09B	5.56B	4.32B
Stockholders Equity	11.21B	10.56B	9.17B	9.94B	10.44B
Cash Flow
Free Cash Flow	4.09B	2.88B	2.53B	3.06B	2.97B
Operating Cash Flow	4.35B	3.15B	2.85B	3.35B	3.26B
Investing Cash Flow	-361.00M	-708.00M	-218.00M	-1.00B	-1.13B
Financing Cash Flow	-2.88B	-2.12B	-3.29B	-3.33B	-1.32B

Infosys Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1640.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1631.88, above the 50-day MA of 1589.39, and above the 200-day MA of 1517.63, indicating a bullish trend. The MACD of 8.64 indicates Positive momentum. The RSI at 65.85 is Neutral, neither overbought nor oversold. The STOCH value of 49.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:INFY.

Infosys Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCS	80 Outperform	₹11.60T	24.31	―	3.55%	3.62%	4.43%
LTIM	78 Outperform	₹1.87T	38.37	―	1.08%	8.72%	4.54%
WIPRO	75 Outperform	₹2.80T	21.09	―	4.05%	1.10%	14.83%
INFY	73 Outperform	₹7.02T	24.99	―	2.70%	7.90%	4.28%
HCLTECH	73 Outperform	₹4.61T	27.95	―	2.86%	7.52%	0.87%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TECHM	55 Neutral	₹1.64T	31.99	―	2.76%	3.30%	36.78%

Infosys Limited Corporate Events

Infosys Board Clears Q3 FY26 Financials, Approves CEO RSU Grant and New Share Allotment

Infosys Limited’s board has approved the audited consolidated and standalone financial results for the quarter and nine months ended December 31, 2025, prepared under Indian Accounting Standards and IFRS, underscoring the company’s adherence to multiple global reporting frameworks for its investors across markets. The board also cleared an annual time-based restricted stock unit grant worth ₹3 crore to CEO and MD Salil Parekh under the 2015 Stock Incentive Compensation Plan and approved the allotment of 6,914 equity shares following employee RSU exercises, marginally increasing the company’s paid-up share capital and reflecting its continued use of equity-based compensation to retain and incentivize leadership and key talent.

Infosys Science Foundation Honors Young Researchers with Infosys Prize 2025

The Infosys Science Foundation, supported by Infosys Limited, has announced the winners of the Infosys Prize 2025 at a ceremony in Bengaluru, recognizing outstanding researchers under the age of 40 across six disciplines: Economics, Engineering and Computer Science, Humanities and Social Sciences, Life Sciences, Mathematical Sciences, and Physical Sciences. Each laureate received a pure gold medal, a citation, and a prize purse of USD 100,000, with Nobel laureate Randy Schekman serving as chief guest and praising India’s growing leadership in global scholarship; the event, attended by prominent Infosys founders and business leaders, underscores the company’s strategic emphasis on nurturing early-stage scientific talent and strengthening India’s research ecosystem, with implications for innovation, global competitiveness, and long-term scientific collaboration.

Infosys Subsidiary IMS Settles South Dakota Data Breach Inquiry with $30,000 Consent Order

Infosys Limited reported that its subsidiary Infosys McCamish Systems (IMS), part of Infosys BPM, has reached a Consent Order with the South Dakota Division of Insurance in relation to concerns over notification and response timelines tied to a 2023 data breach. The regulator had raised issues that IMS may have breached South Dakota codified laws by not responding to a request for information within 20 days, but the matter has been settled via a Consent Order that expressly notes there is no admission of any legal violations. As part of the resolution, IMS has paid a monetary penalty of $30,000, signaling a limited financial impact while allowing Infosys to close out a regulatory compliance issue in its U.S. insurance services business and move forward without further enforcement action in this matter.

Infosys Announces Board Meeting Notice Publication

Infosys Limited has announced the publication of a board meeting notice in both English and regional Kannada newspapers. This notice is part of their ongoing communication efforts with stakeholders and will also be available on the company’s official website, ensuring transparency and accessibility of information.

Infosys Report Highlights Psychological Safety as Key to AI Success

Infosys, in collaboration with MIT Technology Review Insights, has released a report emphasizing the importance of psychological safety in the successful implementation of AI initiatives. The report reveals that 83% of business leaders see a measurable impact of psychological safety on AI projects, highlighting that trust, transparency, and a ‘safe to fail’ culture are crucial for scaling AI effectively. Despite significant investments in AI, human factors such as fear of failure and lack of clear communication are hindering adoption. The findings suggest that fostering a culture of psychological safety is as vital as deploying advanced AI systems to achieve tangible business outcomes.

Infosys Expands Footprint with New Subsidiary in Vietnam

Infosys Limited has announced that its subsidiary, Infosys Singapore Pte Ltd, has approved the establishment of a new wholly owned subsidiary, Infosys Vietnam LLC, in Vietnam. This expansion reflects Infosys’s strategic move to enhance its presence in the Asia-Pacific region, potentially offering new opportunities for growth and strengthening its market position.

Infosys Foundation Expands ‘Gear for Gold’ Initiative to Support Diverse Athletes

Infosys Foundation, the philanthropic arm of Infosys, has expanded its collaboration with GoSports Foundation through the ‘Gear for Gold’ initiative, aimed at supporting a diverse range of athletes, including male, female, and para-athletes. This initiative focuses on enhancing sports infrastructure, providing advanced coaching, and implementing modern sports science practices across six disciplines, thereby fostering talent development and achieving significant success in national and international competitions.

Infosys Faces Penalty for ITC Discrepancy

Infosys Limited has disclosed a communication regarding a penalty from the Joint Commissioner of CGST for an alleged excess availment of Input Tax Credit (ITC) for the fiscal year 2018-19. The penalty amounts to INR 23,08,904, but the company has stated that this will have no material impact on its financials, operations, or other activities.

Infosys Announces Merger of Romanian Subsidiaries to Streamline Operations

Infosys Limited announced the merger of its wholly owned step-down subsidiaries, Infosys Romania and ProIT, as part of an internal restructuring effort. This merger aims to enhance operational synergies and streamline the company’s group structure. The transaction, involving no cash consideration, is exempt from related party transaction regulations due to both entities being wholly owned subsidiaries of Infosys Limited. The merger is not expected to affect the shareholding pattern of Infosys Limited.

Infosys Faces GST Penalty with No Material Impact on Operations

Infosys Limited has disclosed a communication from the Joint Commissioner of CGST regarding a penalty of INR 13,60,11,264 for alleged non-payment of GST related to employee stays in guest houses for business purposes from FY 2018-19 to 2022-23. The company stated that there is no material impact on its financials or operations due to this penalty, and it is currently verifying the details of the communication to determine further steps.

Infosys Engages Investors with December 2025 Conferences

Infosys Limited announced its participation in several investor meetings and conferences scheduled for December 2025. These events, including virtual group calls and non-deal roadshows in locations such as San Francisco, Chicago, and New York, will feature key company executives like the Chief Financial Officer and the Chief Technology Officer. The participation in these events underscores Infosys’s commitment to engaging with investors and stakeholders, potentially enhancing its market visibility and investor relations.

Infosys Announces Dispatch of Buyback Offer

Infosys Limited has announced the publication of a newspaper advertisement regarding the dispatch of a Letter of Offer related to a buyback of its outstanding equity shares. The advertisement was published in several major newspapers, including The Economic Times and Business Standard, as well as in The New York Times. This move is part of Infosys’ strategic financial management, potentially impacting its market positioning and shareholder value.