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Infosys Limited (IN:INFY)
:INFY
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Infosys Limited
(INFY)
Rating:71Outperform
Price Target:
₹1,717.00
▲(15.42% Upside)
Infosys Limited (INFY) vs. iShares MSCI India ETF (INDA)
Market Cap
₹6.22T
Dividend Yield2.89%
Average Volume (3M)354.37K
Price to Earnings (P/E)22.7
Beta (1Y)0.89
Revenue Growth7.03%
EPS Growth2.21%
CountryIN
Employees300,000
SectorTechnology
Sector Strength83
IndustryInformation Technology Services
Share Statistics
EPS (TTM)16.42
Shares Outstanding4,154,370,000
10 Day Avg. Volume285,194
30 Day Avg. Volume354,366
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,750.94Price Target Upside17.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
Infosys Limited Business Overview & Revenue Model
Company DescriptionInfosys Limited is a global leader in consulting, technology, outsourcing, and next-generation digital services. Headquartered in Bangalore, India, the company operates in multiple sectors including finance, manufacturing, telecommunications, and healthcare. Infosys provides a wide range of services such as application development and maintenance, independent validation, infrastructure management, and business process outsourcing. The company is renowned for its innovation in digital transformation and its ability to help clients navigate their digital journeys effectively.
How the Company Makes MoneyInfosys Limited generates revenue primarily through its IT services and consulting offerings. The company's revenue model is centered around providing end-to-end solutions that include software development, systems integration, and IT-enabled services. Key revenue streams include consulting and systems integration services, business process management, cloud and infrastructure services, and digital transformation offerings. Infosys also earns from maintenance services and product licensing. Significant partnerships with global enterprises, as well as strategic acquisitions, further bolster its earnings. The company benefits from long-term contracts with clients across various industries, ensuring a stable and recurring income base. Additionally, Infosys invests in innovation hubs and centers of excellence worldwide to maintain its competitive edge and cater to the evolving needs of its clients.
Infosys Limited Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q1-2026)
| % Change Since: -5.25%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with strong performance in revenue growth, large deal wins, and leadership in enterprise AI. However, challenges such as lowered revenue guidance, increased attrition, and sector-specific difficulties indicate caution. Despite the positive highlights, the lowered guidance and ongoing uncertainties result in a neutral sentiment.Q1-2026 Updates
Positive Updates
Strong Revenue Growth
Infosys reported a revenue growth of 2.6% sequentially and 3.8% year-on-year in constant currency terms, driven by broad-based growth across industry groups and geographies.
Large Deal Wins
The company secured large deals worth $3.8 billion in total contract value, with 55% being net new wins. These include a major deal with a large global bank.
Enterprise AI Leadership
Infosys is leveraging AI to drive productivity and operational efficiency for clients, leading to recognition as a leader in Gartner's first generative AI consulting and implement services quadrant.
Resilient Operating Margins
Operating margins were maintained at 20.8%, despite headwinds from compensation increases and higher variable pay.
High Free Cash Flow
Free cash flow for the quarter was $884 million, which is 109% of net profit, marking the fifth consecutive quarter of free cash flows being over 100% of net profit.
Europe Region Outperformance
Europe grew 12.3% year-on-year, driven by large deal wins and increased outsourcing opportunities.
Negative Updates
Lowered Revenue Guidance
Infosys revised its FY '26 revenue guidance to 1% to 3% in constant currency terms, citing ongoing macroeconomic uncertainties and geopolitical tensions.
Operating Margin Decline
Operating margins declined by 20 basis points sequentially and 30 basis points year-on-year due to compensation increases and investments in sales and marketing.
Increased Attrition Rate
Attrition increased marginally to 14.4%, indicating potential challenges in retaining talent.
Challenges in Specific Verticals
The manufacturing segment faces challenges with decision-making delays and soft discretionary spending, while the communications sector is impacted by growth challenges and increased OpEx measures.
Company Guidance
During the Infosys Q1 FY '26 earnings call, the company reported a sequential revenue growth of 2.6% and a year-on-year increase of 3.8% in constant currency terms. The operating margin stood at 20.8%, while free cash flow reached $884 million. Infosys secured large deals totaling $3.8 billion, with 55% being net new. This included multiple vendor consolidation deals, such as a significant agreement with a global bank. The company highlighted its leadership in enterprise AI, with various AI agents deployed across sectors like oil and gas, manufacturing, logistics, retail, and financial services. Based on its Q1 performance, Infosys revised its FY '26 revenue growth guidance to 1% to 3% in constant currency, while maintaining a margin guidance of 20% to 22%. Additionally, the company's effective tax rate was projected to be between 29% and 30% for the fiscal year.Infosys Limited Financial Statement Overview
Summary
Infosys Limited shows strong financial performance with consistent revenue growth, stable profitability margins, and a solid balance sheet. The company has low leverage, high equity, and excellent cash flow management. However, slight contractions in profitability margins temper the score.Income Statement
Infosys Limited has demonstrated consistent revenue growth, with a notable increase in Total Revenue from $18.562 billion in 2024 to $19.277 billion in TTM (Trailing-Twelve-Months), representing a 3.97% growth rate. The Gross Profit Margin remains strong at 30.47% in TTM, indicating effective cost management, while the Net Profit Margin is slightly lower at 16.38% compared to 17.06% in 2024, suggesting a small contraction in profitability. EBIT and EBITDA margins are stable, reflecting operational efficiency.85
Very Positive
Balance Sheet
The company maintains a healthy financial position with an Equity Ratio of 64.35% in TTM, indicating strong capitalization. The Debt-to-Equity Ratio is low at 0.06, showcasing minimal leverage and a conservative financial strategy. Return on Equity stands at 28.17%, demonstrating effective use of shareholder funds despite a slight decrease from 30% in 2024.80
Positive
Cash Flow
Infosys Limited shows robust cash flow management, with a significant increase in Free Cash Flow from $2.882 billion in 2024 to $4.088 billion in TTM, reflecting a 41.85% growth. The Operating Cash Flow to Net Income Ratio is 1.38, indicating strong cash generation relative to earnings. The Free Cash Flow to Net Income Ratio is 1.29, suggesting efficient conversion of earnings into cash flow.88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.28B | 19.28B | 18.56B | 18.21B | 16.31B | 13.56B |
| Gross Profit | 5.87B | 5.87B | 5.47B | 5.50B | 5.32B | 4.61B |
| EBITDA | 4.47B | 4.42B | 4.21B | 4.68B | 4.12B | 4.06B |
| Net Income | 3.16B | 3.16B | 3.17B | 2.98B | 2.96B | 2.61B |
Balance Sheet | ||||||
| Total Assets | 17.42B | 17.42B | 16.52B | 15.31B | 15.55B | 14.82B |
| Cash, Cash Equivalents and Short-Term Investments | 4.51B | 4.51B | 3.43B | 2.36B | 3.23B | 3.75B |
| Total Debt | 962.00M | 962.00M | 1.00B | 1.01B | 722.00M | 728.00M |
| Total Liabilities | 6.16B | 6.16B | 5.92B | 6.09B | 5.56B | 4.32B |
| Stockholders Equity | 11.21B | 11.21B | 10.56B | 9.17B | 9.94B | 10.44B |
Cash Flow | ||||||
| Free Cash Flow | 4.09B | 4.09B | 2.88B | 2.53B | 3.06B | 2.97B |
| Operating Cash Flow | 4.35B | 4.35B | 3.15B | 2.85B | 3.35B | 3.26B |
| Investing Cash Flow | -361.00M | -361.00M | -708.00M | -218.00M | -1.00B | -1.13B |
| Financing Cash Flow | -2.88B | -2.88B | -2.12B | -3.29B | -3.33B | -1.32B |
Infosys Limited Technical Analysis
Neutral
1487.60
Price Trends
1550.23
Negative
1528.39
Negative
1669.16
Negative
Market Momentum
-22.52
Negative
48.63
Neutral
87.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INFY, the sentiment is Neutral. The current price of 1487.6 is above the 20-day moving average (MA) of 1468.11, below the 50-day MA of 1550.23, and below the 200-day MA of 1669.16, indicating a neutral trend. The MACD of -22.52 indicates Negative momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 87.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹1.55T | 32.82 | 2.10% | 7.64% | 3.35% | ||
74 Outperform | ₹2.59T | 19.19 | 4.42% | 0.41% | 20.30% | ||
71 Outperform | ₹6.22T | 22.74 | 2.89% | 7.03% | 2.21% | ||
68 Neutral | ₹10.91T | 22.15 | 3.78% | 4.92% | 5.63% | ||
64 Neutral | ₹4.01T | 23.57 | 3.27% | 6.87% | 3.34% | ||
61 Neutral | $34.98B | 7.37 | -10.82% | 1.91% | 8.82% | -8.66% | |
55 Neutral | ₹1.49T | 29.63 | 2.99% | 2.88% | 79.99% |
* Technology Sector Average
Performance Comparison
IN:INFY
Infosys Limited
1,487.60
-341.50
-18.67%
IN:HCLTECH
HCL Technologies Limited
1,466.45
-193.77
-11.67%
IN:LTIM
LTIMindtree Limited
5,224.40
-443.58
-7.83%
IN:TCS
Tata Consultancy Services Limited
3,053.65
-1,301.82
-29.89%
IN:TECHM
Tech Mahindra Limited
1,503.95
-91.72
-5.75%
IN:WIPRO
Wipro Limited
248.60
-1.37
-0.55%
Infosys Limited Corporate Events
Infosys Partners with RWE AG for Digital Workplace Transformation
Jul 28, 2025
Infosys has announced a strategic collaboration with RWE AG, a German multinational energy company, to drive automated digital workplace transformation. This partnership aims to enhance RWE’s operational efficiency by implementing solutions that automate processes and enable self-service options, leveraging Infosys’s expertise in digital workplace transformations. The collaboration underscores Infosys’s commitment to supporting RWE’s sustainability and efficiency goals, ultimately empowering RWE’s workforce and fostering a productive environment for sustainable growth.
Infosys Limited Conducts 44th Annual General Meeting with Global Participation
Jul 2, 2025
Infosys Limited held its 44th Annual General Meeting on June 25, 2025, with key corporate participants joining via video conference from various global locations. The meeting included discussions led by prominent directors and committee chairpersons, focusing on areas such as risk management, audit, stakeholder relationships, and corporate social responsibility, highlighting the company’s commitment to governance and strategic oversight.
Infosys Submits SEBI Compliance Certificate for Q2 2025
Jul 2, 2025
Infosys Limited has submitted a certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, confirming the details of securities dematerialized and rematerialized for the quarter ending June 30, 2025. This compliance ensures transparency and adherence to regulatory requirements, reinforcing Infosys’s commitment to maintaining robust operational standards and enhancing stakeholder trust.
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.