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Infosys Limited
(INFY)
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Rating:74Outperform
Price Target:
₹1,314.00
▲(26.23% Upside)
Action:Reiterated
Date:07/24/26
The score is driven primarily by strong financial quality (profitability, low leverage, and robust free cash flow) and supportive valuation (moderate P/E and high dividend yield). These positives are partially offset by weak technicals (price below key moving averages and negative MACD) and a mixed earnings-call outlook featuring reduced revenue guidance and ongoing pricing/demand headwinds despite resilient margins and strong deal/AI traction.
Positive Factors
Strong cash generation & conservative balance sheet
Consistent multi-billion dollar operating cash flow and free cash flow paired with substantial cash reserves provide durable funding for investments, dividends and M&A. This high cash conversion reduces refinancing risk and supports shareholder returns and strategic reinvestment across cycles.
Negative Factors
Lowered revenue guidance and muted organic growth
Management's reduced guidance signals constrained top‑line momentum and softer client volumes, implying slower organic growth over the coming year. Persistently muted revenue growth can limit reinvestment capacity and reduce optionality for margin expansion despite operational strengths.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & conservative balance sheet
Consistent multi-billion dollar operating cash flow and free cash flow paired with substantial cash reserves provide durable funding for investments, dividends and M&A. This high cash conversion reduces refinancing risk and supports shareholder returns and strategic reinvestment across cycles.
Read all positive factors
Infosys Limited (INFY) vs. iShares MSCI India ETF (INDA)
Market Cap
₹4.59T
Dividend Yield4.25%
Average Volume (3M)402.96K
Price to Earnings (P/E)14.4
Beta (1Y)0.76
Revenue Growth5.76%
EPS Growth12.64%
CountryIN
Employees328,594
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.82
Shares Outstanding4,057,578,900
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
₹1,065.00Price Target Upside2.31% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)76.59
Revenue Forecast (FY)₹1.95T
Infosys Limited Business Overview & Revenue Model
Company Description
Infosys Limited, through its global subsidiaries, delivers an extensive range of consulting, technology, outsourcing, and cutting-edge digital solutions across North America, Europe, India, and other international markets. Its diverse service port...
How the Company Makes Money
Infosys primarily makes money by charging enterprise clients for IT and business process-related services delivered under consulting engagements, project-based work, and long-term managed services/outsourcing contracts. A major portion of revenue ...
Infosys Limited Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Neutral
The quarter showed strong cash generation, margin resilience, meaningful large-deal momentum and accelerating AI revenue (8.2% of revenue), along with a clear succession plan — all positive indicators. Offsetting these were softer-than-expected volumes, a one-time program termination, competitive pricing pressure, a meaningful hit from a large European manufacturing client, and a lowered revenue guidance to 1.5%–3.0%. On balance the company demonstrated operational strength (cash, margins, deal wins, AI traction) but faced tangible near-term demand and pricing headwinds that temper near-term growth prospects.Positive Updates
Revenue Growth (Q1)
Q1 revenue grew 2.4% year-on-year and 1.0% quarter-on-quarter in constant currency.
Negative Updates
One-Time Client Program Termination
A program termination in the EURS (Europe & Resources) vertical caused an estimated ~50 basis points one-time revenue impact during the quarter and was absorbed in Q1.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Growth (Q1)
Q1 revenue grew 2.4% year-on-year and 1.0% quarter-on-quarter in constant currency.
Read all positive updates
Company Guidance
Infosys revised FY‑27 revenue guidance to 1.5–3.0% year‑on‑year in constant currency (midpoint ~2.25%) while maintaining operating margin guidance of 20–22%; this follows Q1 results showing revenue growth of 2.4% YoY and 1% QoQ in CC, operating margin 21.1% (↑20 bps QoQ), gross margin improvement of 60 bps, AI services at 8.2% of revenue (growing double‑digit QoQ), Q1 revenue reported at $502m (acquisitions contributed ~1.1% sequentially), large deal TCV $3.6bn (61% net new; 22 large deals including three ~ $400m deals), free cash flow $955m (16.5% of net profit), consolidated cash & investments $3.9bn after returning >$1bn to shareholders, EPS ₹19.19 (≈+15% YoY), DSO 76 days (vs 78), utilization excluding trainees 84.9% (↑1.9 ppt), attrition 13%, headcount down 500, plan to build ~6,000 frontier engineers, and an expected effective tax rate of 29–30%; the guidance reflects ~1.7% revenue from recent acquisitions, a one‑time ~50 bps revenue hit from a program termination, ~1% impact from a large European manufacturing client, ~0.75–1% headwind from offshoring shifts, and margin headwinds from wage hikes, AI investments and acquisition amortization (c.50 bps) partly offset by currency tailwinds and Project Maximus.Infosys Limited Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.28B | 20.16B | 19.28B | 18.56B | 18.21B | 16.31B |
| Gross Profit | 6.15B | 6.08B | 5.87B | 5.47B | 5.50B | 5.32B |
| EBITDA | 5.04B | 5.11B | 4.85B | 4.77B | 4.68B | 4.42B |
| Net Income | 3.32B | 3.31B | 3.16B | 3.17B | 2.98B | 2.96B |
Balance Sheet | ||||||
| Total Assets | 16.26B | 16.45B | 17.42B | 16.52B | 15.31B | 15.55B |
| Cash, Cash Equivalents and Short-Term Investments | 3.10B | 3.75B | 4.51B | 3.43B | 2.36B | 3.23B |
| Total Debt | 917.32M | 967.00M | 962.00M | 1.00B | 1.01B | 722.00M |
| Total Liabilities | 6.65B | 6.61B | 6.16B | 5.92B | 6.09B | 5.56B |
| Stockholders Equity | 9.57B | 9.79B | 11.21B | 10.56B | 9.17B | 9.94B |
Cash Flow | ||||||
| Free Cash Flow | 3.81B | 3.73B | 4.09B | 2.88B | 2.53B | 3.06B |
| Operating Cash Flow | 4.10B | 4.04B | 4.35B | 3.15B | 2.85B | 3.35B |
| Investing Cash Flow | -338.32M | 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 Limited Technical Analysis
Positive
1040.95
Price Trends
1104.83
Positive
1152.90
Positive
1322.71
Negative
Market Momentum
23.44
Negative
62.17
Neutral
86.95
Negative
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 1040.95 is below the 20-day moving average (MA) of 1111.40, below the 50-day MA of 1104.83, and below the 200-day MA of 1322.71, indicating a neutral trend. The MACD of 23.44 indicates Negative momentum. The RSI at 62.17 is Neutral, neither overbought nor oversold. The STOCH value of 86.95 is Negative, 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 14 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ₹3.65T | 20.83 | ― | 4.72% | 12.59% | 2.65% | |
76 Outperform | ₹8.56T | 17.19 | ― | 4.92% | 7.70% | 1.07% | |
75 Outperform | ₹1.29T | 26.78 | ― | 2.80% | 13.87% | 10.72% | |
74 Outperform | ₹4.59T | 14.45 | ― | 4.61% | 5.76% | 12.64% | |
70 Outperform | ₹1.62T | 28.50 | ― | 3.27% | 10.95% | 12.97% | |
67 Neutral | ₹1.82T | 14.54 | ― | 6.21% | 6.40% | -1.86% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
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Infosys Limited Corporate Events
Infosys Finacle Wins Investec Mandate for Multi‑Country Azure‑Based Banking Overhaul
Jul 30, 2026
Infosys Finacle, the banking platform business of Infosys, has been selected by Investec, a leading international bank and wealth manager, to modernize its operations across South Africa, the U.K., Mauritius and the Channel Islands using a cloud&#...
Infosys clears June-quarter results, appoints new CEO designate and plans Singapore unit
Jul 23, 2026
Infosys said its board approved audited consolidated, standalone, and IFRS-compliant financial results for the quarter ended June 30, 2026, underscoring the company’s focus on regulatory compliance and transparent reporting. The board also c...
Infosys to Engage Investors at CLSA GenAI Access Days
Jun 8, 2026
Infosys has notified stock exchanges that senior members of its management team will participate in CLSA India GenAI Access Days on June 15, 2026 via a virtual group meeting. The session will feature the Chief Delivery Officer, Chief Technology Of...
Infosys Sets Virtual AGM for June 23 and Proposes ₹25 Final Dividend
May 28, 2026
Infosys has announced that its 45th Annual General Meeting will be held on June 23, 2026, via video conference in line with regulatory circulars, with electronic distribution of the AGM notice and Integrated Annual Report to shareholders whose con...
Infosys Expands Share Capital With Employee Stock Allotment
May 23, 2026
Infosys Limited has increased its equity base by allotting 701,328 new shares of face value ₹5 each to employees exercising Restricted Stock Units under its 2015 Incentive Compensation Plan and the Infosys Expanded Stock Ownership Program 20...
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.