Infosys Limited (IN:INFY)
:INFY
Top Page
Infosys Limited
(INFY)
Select Model
Select Model
Rating:73Outperform
Price Target:
₹1,426.00
▼(-13.08% Downside)
Action:ReiteratedDate:01/16/26
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
High profit margins and ROE
Sustained operating and net margins around 21%/16% and very high ROE indicate durable pricing power and operational efficiency in a services model. This margin base supports reinvestment in digital capabilities, funds shareholder returns, and cushions cyclicality in demand over months.
Negative Factors
India labour‑code charge and ongoing headwind
The material one‑time accrual and a recurring ~15 basis point wage cost add a persistent margin drag. Over a 2–6 month horizon, this narrows operating flexibility and raises the breakeven for margin expansion, requiring offsetting productivity or pricing improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
High profit margins and ROE
Sustained operating and net margins around 21%/16% and very high ROE indicate durable pricing power and operational efficiency in a services model. This margin base supports reinvestment in digital capabilities, funds shareholder returns, and cushions cyclicality in demand over months.
Read all positive factors
Infosys Limited (INFY) vs. iShares MSCI India ETF (INDA)
Market Cap
₹5.19T
Dividend Yield2.7%
Average Volume (3M)402.96K
Price to Earnings (P/E)25.2
Beta (1Y)0.88
Revenue Growth7.90%
EPS Growth4.28%
CountryIN
Employees300,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)16.14
Shares Outstanding4,055,391,000
10 Day Avg. Volume365,556
30 Day Avg. Volume402,963
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)6.62
Price to Sales (P/S)3.85
P/FCF Ratio18.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,728.13Price Target Upside5.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)70.58
Revenue Forecast (FY)₹1.79T
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 and solutions to enterprise clients under consulting and delivery engagements, generating revenue from fees billed for time-and-materials work, fixed-price projects, and managed services contract...
Infosys Limited Earnings Call Summary
Earnings Call Date:Jan 14, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive but cautious tone. Positive indicators include modest sequential and year‑over‑year revenue growth, an upgraded near‑term revenue guidance, strong large‑deal activity (including a $1.6bn NHS win), healthy adjusted margins and robust free cash flow, plus clear, measurable AI momentum (large client adoption, thousands of projects and agent development). Offsetting these positives are near‑term headwinds from India labor‑code charges (INR 1,289 crore one‑time and ~15 bps ongoing), lower utilization due to large fresher onboarding, seasonal furlough effects, retail weakness in pockets, and some U.S. visa/deployment uncertainty. Overall the positives (guidance upgrade, large deals, AI traction, cash flow and adjusted margins) outweigh the transitory and structural challenges discussed.Positive Updates
Modest Revenue Growth and Upgraded Guidance
Revenue grew 0.6% sequentially and 1.7% year‑on‑year in constant currency. Management raised FY2026 revenue growth guidance to 3.0%–3.5% (constant currency), while maintaining operating margin guidance at 20%–22%.
Negative Updates
Reported Margin Impact from India Labor Code
Reported operating margin showed a marginal dip (management discussion referenced a reported ~20.8% sequential level); the company took a one‑time charge of INR 1,289 crore related to labor code changes. Management expects an ongoing annual headwind of roughly 15 basis points from the wage/labor code going forward.
Read all updates
Q3-2026 Updates
Positive
Negative
Modest Revenue Growth and Upgraded Guidance
Revenue grew 0.6% sequentially and 1.7% year‑on‑year in constant currency. Management raised FY2026 revenue growth guidance to 3.0%–3.5% (constant currency), while maintaining operating margin guidance at 20%–22%.
Read all positive updates
Company Guidance
Infosys raised its FY revenue growth guidance to 3.0–3.5% in constant currency while keeping operating margin guidance unchanged at 20–22%; that raise was supported by Q3 results that showed revenue up 0.6% sequentially and 1.7% YoY in CC, large deal signings of $4.8bn (57% net new) across 26 deals including a $1.6bn NHS win, adjusted operating margin of 21.2% (9‑month margin 21%, with a 20bps sequential expansion on an adjusted basis), free cash flow of $915m, and significant AI traction — working with 90% of the top 200 clients on ~4,600 AI projects, generating >28 million lines of AI‑assisted code and building over 500 agents across six AI‑led value pools — while also onboarding ~18,000 of a planned 20,000 freshers; the company accrued INR 1,289 crore for labor code changes (with an ongoing ~15bps annual margin impact).Infosys Limited Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.81B | 19.28B | 18.56B | 18.21B | 16.31B | 13.56B |
| Gross Profit | 5.91B | 5.87B | 5.47B | 5.50B | 5.32B | 4.61B |
| EBITDA | 4.67B | 4.42B | 4.21B | 4.68B | 4.12B | 4.06B |
| Net Income | 3.20B | 3.16B | 3.17B | 2.98B | 2.96B | 2.61B |
Balance Sheet | ||||||
| Total Assets | 15.95B | 17.42B | 16.52B | 15.31B | 15.55B | 14.82B |
| Cash, Cash Equivalents and Short-Term Investments | 2.98B | 4.51B | 3.43B | 2.36B | 3.23B | 3.75B |
| Total Debt | 978.55M | 962.00M | 1.00B | 1.01B | 722.00M | 728.00M |
| Total Liabilities | 6.67B | 6.16B | 5.92B | 6.09B | 5.56B | 4.32B |
| Stockholders Equity | 9.23B | 11.21B | 10.56B | 9.17B | 9.94B | 10.44B |
Cash Flow | ||||||
| Free Cash Flow | 3.79B | 4.09B | 2.88B | 2.53B | 3.06B | 2.97B |
| Operating Cash Flow | 4.08B | 4.35B | 3.15B | 2.85B | 3.35B | 3.26B |
| Investing Cash Flow | -33.00M | -361.00M | -708.00M | -218.00M | -1.00B | -1.13B |
| Financing Cash Flow | -4.47B | -2.88B | -2.12B | -3.29B | -3.33B | -1.32B |
Infosys Limited Technical Analysis
Neutral
1640.65
Price Trends
1437.03
Negative
1505.32
Negative
1504.35
Negative
Market Momentum
-47.31
Negative
41.71
Neutral
55.18
Neutral
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 1640.65 is above the 20-day moving average (MA) of 1276.33, above the 50-day MA of 1437.03, and above the 200-day MA of 1504.35, indicating a neutral trend. The MACD of -47.31 indicates Negative momentum. The RSI at 41.71 is Neutral, neither overbought nor oversold. The STOCH value of 55.18 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ₹8.60T | 27.22 | ― | 3.55% | 3.62% | 4.43% | |
73 Outperform | ₹5.19T | 25.22 | ― | 2.70% | 7.90% | 4.28% | |
73 Outperform | ₹3.75T | 26.95 | ― | 2.86% | 7.52% | 0.87% | |
68 Neutral | ₹1.98T | 22.11 | ― | 4.05% | 1.10% | 14.83% | |
66 Neutral | ₹1.27T | 46.27 | ― | 1.08% | 8.72% | 4.54% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | ₹1.38T | 31.42 | ― | 2.76% | 3.30% | 36.78% |
* Technology Sector Average
IN:INFY
Infosys Limited
1,279.35
-272.86
-17.58%
IN:HCLTECH
HCL Technologies Limited
1,382.35
-195.67
-12.40%
IN:LTIM
LTIMindtree Limited
4,292.00
-266.14
-5.84%
IN:TCS
Tata Consultancy Services Limited
2,378.15
-1,135.90
-32.32%
IN:TECHM
Tech Mahindra Limited
1,409.10
33.29
2.42%
IN:WIPRO
Wipro Limited
189.05
-73.05
-27.87%
Infosys Limited Corporate Events
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...
Infosys Faces Minor Penalty in California for Late Unemployment Insurance Payment
Jan 31, 2026
Infosys Limited has disclosed that the Employment Development Department of the State of California has imposed a total penalty of USD 11,041.03 on the company for the late payment of State Unemployment Insurance for the fourth quarter of FY25. Th...
Infosys Unveils AI-Driven Fan and Accessibility Innovations for Australian Open 2026
Jan 29, 2026
Infosys has unveiled a new suite of AI-driven fan and accessibility innovations for the Australian Open 2026, leveraging its Infosys Topaz platform to deepen its role as Tennis Australia’s strategic technology partner. The launch includes Ma...
Infosys to Host Investor AI Day in Bengaluru on February 17, 2026
Jan 23, 2026
Infosys Limited has announced that it will hold an Investor AI Day in Bengaluru on February 17, 2026, with the detailed agenda to be finalized and shared later. The event, aimed at engaging investors around the company’s AI-related strategy ...
Infosys Publishes Q3 FY26 Earnings Call and Press Conference Transcripts
Jan 19, 2026
Infosys Limited has notified domestic and international stock exchanges that it has released the official transcripts of its January 14, 2026 press conference and earnings call held following a meeting of the company’s board of directors. Th...
Infosys Board Clears Q3 FY26 Financials, Approves CEO RSU Grant and New Share Allotment
Jan 14, 2026
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 adh...
Infosys Science Foundation Honors Young Researchers with Infosys Prize 2025
Jan 10, 2026
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 an...
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.