Infosys (INFY) AI Stock Analysis

• Market Cap: $70.38B
• Dividend Yield: 3.12%
• Average Volume (3M): 14.78M
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.82
• Revenue Growth: 4.62%
• EPS Growth: 1.06%
• Country: US
• Employees: 300,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.20
• Shares Outstanding: 4,154,401,400
• 10 Day Avg. Volume: 10,252,000
• 30 Day Avg. Volume: 14,781,839
• PEG Ratio: -18.42
• Price to Book (P/B): 6.74
• Price to Sales (P/S): 3.92
• P/FCF Ratio: 18.00
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 3.26
• Enterprise Value/Gross Profit: 10.70
• Enterprise Value/Ebitda: 14.14
• 1Y Price Target: $17.20
• Price Target Upside: 3.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $19.00 ▲(14.11% Upside)

Infosys presents a strong financial position with consistent profitability and low leverage, contributing significantly to the score. The earnings call provided a mixed outlook with strong growth but highlighted challenges. Technical indicators suggest potential short-term weakness, while valuation metrics are reasonable. Overall, Infosys is well-positioned but faces some external challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective client engagement, supporting long-term business expansion and stability.

Cash Flow Management

Strong cash flow management enhances liquidity and provides financial flexibility to invest in growth opportunities and manage economic uncertainties.

Enterprise AI Leadership

Leadership in AI positions Infosys as a key player in digital transformation, attracting new clients and retaining existing ones, driving future growth.

Negative Factors

Operating Margin Decline

Declining operating margins could pressure profitability, necessitating cost management strategies to sustain financial health and competitive positioning.

Increased Attrition

Rising attrition rates may impact project delivery and increase recruitment costs, challenging Infosys to maintain workforce stability and expertise.

Cautious Client Spending

Cautious client spending can slow revenue growth, requiring Infosys to adapt strategies to mitigate the impact of external economic factors.

Infosys 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 digital marketing and digital workplace, digital commerce, digital experience and interactions, metaverse, data analytics and AI, applied AI, generative AI, sustainability, blockchain, engineering, Internet of Things, enterprise agile DevOps, application modernization, cloud, digital process automation, digital supply chain, Microsoft business application and cloud business, service experience transformation, energy transition, cyber security, and quality engineering solutions; Oracle, SAP, and Saleforce solutions; API economy and microservices; and Topaz, an AI-first set of services, solutions, and platforms using generative AI technologies. The company's products and platforms include Finacle, a core banking solution; Edge suite of products; Panaya platform, Infosys Equinox, Infosys Helix, Infosys Applied AI, Infosys Cortex, and Stater digital platforms; and Infosys McCamish, an insurance platform. It serves aerospace and defense, agriculture, automotive, chemical manufacturing, communication, consumer packaged goods, education, engineering procurement and construction, healthcare, high technology, industrial manufacturing, information services and publishing, insurance, life science, logistics and distribution, media, entertainment, mining, oil and gas, private equity, professional, public, retail, travel, hospitality, utilities, and waste management industries. 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, as well as business process outsourcing services. The company operates on a project-based billing model, where clients are charged based on the services rendered, often through fixed-price contracts or time-and-material agreements. Key revenue streams include large-scale contracts with Fortune 500 companies, particularly in industries like banking, insurance, and retail. Additionally, Infosys has established significant partnerships with major technology firms, such as Microsoft, AWS, and Google Cloud, enhancing its service capabilities and expanding its market reach. The company also invests in research and development to create proprietary solutions, further driving its revenue growth.

Infosys Financial Statement Overview

Summary

Infosys demonstrates strong profitability with consistent gross and net profit margins, a solid balance sheet with minimal leverage, and robust cash flow generation. However, the recent decline in free cash flow growth warrants monitoring.

Income Statement

Infosys demonstrates strong profitability with consistent gross and net profit margins. The TTM data shows a gross profit margin of 30.47% and a net profit margin of 16.42%, indicating efficient cost management and profitability. Revenue growth is steady, with a TTM growth rate of 1.18%, reflecting stable demand. EBIT and EBITDA margins are healthy, supporting robust operational performance.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.027 in the TTM, indicating minimal leverage and financial risk. Return on equity is strong at 29.52%, showcasing effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the low debt levels suggest a strong equity base relative to assets.

Cash Flow

Cash flow metrics are stable, with a free cash flow to net income ratio of 0.93 in the TTM, indicating good cash generation relative to profits. However, the free cash flow growth rate shows a decline of 5.06%, which could be a concern if it persists. Operating cash flow coverage ratio is healthy at 0.82, supporting operational liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.50B	19.28B	18.56B	18.21B	16.31B	13.56B
Gross Profit	5.94B	5.87B	5.47B	5.50B	5.32B	4.61B
EBITDA	4.50B	5.07B	4.97B	4.71B	4.53B	4.05B
Net Income	3.20B	3.16B	3.17B	2.98B	2.96B	2.61B
Balance Sheet
Total Assets	17.45B	17.42B	16.52B	15.31B	15.55B	14.82B
Cash, Cash Equivalents and Short-Term Investments	4.09B	4.67B	3.43B	2.32B	3.19B	3.70B
Total Debt	296.41M	962.53M	1.00B	1.01B	722.00M	728.00M
Total Liabilities	6.33B	6.17B	5.92B	6.09B	5.56B	4.32B
Stockholders Equity	11.07B	11.21B	10.56B	9.17B	9.94B	10.44B
Cash Flow
Free Cash Flow	3.94B	4.20B	2.88B	2.53B	3.06B	2.97B
Operating Cash Flow	4.25B	4.46B	3.15B	2.85B	3.35B	3.26B
Investing Cash Flow	-472.78M	-471.45M	-708.00M	-218.00M	-1.00B	-1.13B
Financing Cash Flow	-3.92B	-2.86B	-2.12B	-3.29B	-3.33B	-1.32B

Infosys Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INFY, the sentiment is Negative. The current price of 16.65 is below the 20-day moving average (MA) of 16.80, above the 50-day MA of 16.63, and below the 200-day MA of 17.63, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 49.42 is Neutral, neither overbought nor oversold. The STOCH value of 65.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INFY.

Infosys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACN	80 Outperform	$152.06B	20.18	25.82%	2.48%	7.36%	6.18%
CTSH	80 Outperform	$35.05B	16.83	14.50%	1.72%	7.44%	-4.57%
IBM	77 Outperform	$285.74B	36.56	30.25%	2.20%	4.51%	21.89%
INFY	74 Outperform	$70.38B	21.10	29.15%	3.12%	4.62%	1.06%
EPAM	74 Outperform	$9.89B	27.32	10.21%	―	14.26%	-15.49%
WIT	73 Outperform	$28.88B	17.65	16.39%	3.12%	-1.97%	48.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Infosys Corporate Events

Infosys Announces ₹18,000 Crore Share Buyback Proposal

On October 22, 2025, Infosys Limited announced its proposal to buy back equity shares worth ₹18,000 Crore at a price of ₹1,800 per share, representing 2.41% of its total equity share capital. This move, pending shareholder approval, aims to enhance shareholder value and optimize the company’s capital structure. The draft Letter of Offer has been filed with the U.S. Securities and Exchange Commission for regulatory purposes, with the final offer to be issued in compliance with Indian regulations.

Infosys Reports Strong Q2 2025 Results and Strategic Collaborations

On October 16, 2025, Infosys announced its financial results for the quarter and six months ended September 30, 2025, reporting a quarterly revenue of $5.076 billion, marking a 2.9% year-on-year growth in constant currency. The company achieved strong deal wins with a total contract value of $3.1 billion and maintained robust free cash flow generation. Infosys also announced strategic collaborations with major clients like ABN AMRO, Mastercard, and Telstra to enhance digital transformation and AI integration. The company continues to position itself as a leader in digital innovation, with a focus on AI-driven solutions and sustainable growth.

Infosys Announces Q2 2025 Financial Results and Strategic Moves

On October 16, 2025, Infosys Limited announced its financial results for the quarter and half-year ended September 30, 2025. The company declared an interim dividend of 23/- per equity share, with a record date of October 27, 2025, and a payout date of November 7, 2025. Additionally, the Board approved stock grants under the 2015 and 2019 Stock Incentive Plans, and announced the incorporation of a new subsidiary in Egypt. As part of an internal reorganization, Infosys transferred 90% of its shareholding in Infosys Consulting S.R.L., Argentina, to Infosys Nova Holdings LLC.

Infosys Announces Postal Ballot for Equity Share Buyback

On September 29, 2025, Infosys Limited announced the dispatch of a Postal Ballot Notice to its shareholders, seeking approval for a special resolution regarding the buyback of equity shares. The e-voting process for this resolution is set to commence on October 6, 2025, and conclude on November 4, 2025. This move is part of Infosys’s strategic financial management, potentially impacting shareholder value and market perception.

Infosys Announces Postal Ballot for Equity Buyback Proposal

On September 26, 2025, Infosys Limited announced a Postal Ballot Notice to its shareholders regarding a proposed buyback of equity shares. The buyback is to be conducted on a proportionate basis through a tender offer, and the company has engaged NSDL for facilitating e-voting. The e-voting process will run from October 6 to November 4, 2025. This move is part of Infosys’s strategic financial management to enhance shareholder value. The buyback proposal is yet to be approved by shareholders, and if approved, it will be executed following the necessary regulatory filings and approvals.

Infosys Secures SEC Exemptive Relief for Major Share Buyback

On September 12, 2025, Infosys Limited announced that it received exemptive relief from the U.S. Securities and Exchange Commission (SEC) regarding its proposal to buy back up to 10 crore fully paid-up equity shares, valued at ₹18,000 crore. This buyback is subject to shareholder approval through a special resolution and aims to align with both Indian and U.S. regulatory requirements. The announcement marks a significant step in Infosys’s strategic financial management, potentially impacting its stock market performance and shareholder value.

Infosys Announces ₹18,000 Crore Share Buyback Plan

On September 11, 2025, Infosys Limited announced that its Board of Directors approved a proposal to buy back equity shares worth ₹18,000 Crore at a price of ₹1,800 per share. This buyback represents up to 2.41% of the company’s total paid-up equity share capital and is subject to shareholder approval through a special resolution. The buyback aims to enhance shareholder value and will be conducted through a tender offer route, with the company seeking exemptive relief from the U.S. SEC due to regulatory differences between Indian and U.S. laws. The buyback committee, comprising key company officers, will oversee the process.

Infosys Board to Consider Equity Share Buyback Proposal

On September 8, 2025, Infosys Limited announced that its Board of Directors will consider a proposal for the buyback of equity shares. This move, communicated to the stock exchanges and filed with the United States Securities and Exchange Commission, could impact the company’s capital structure and shareholder value, reflecting Infosys’s strategic financial management decisions.

Infosys Updates on McCamish Cyber Incident

Infosys Limited has reported an update on the McCamish Cyber Incident as of August 5, 2025. This update was formally submitted to the United States Securities and Exchange Commission on August 6, 2025. The incident’s details were shared with stock exchanges, reflecting Infosys’ commitment to transparency and compliance. The update signifies the company’s proactive measures in addressing cybersecurity challenges, which are crucial for maintaining stakeholder trust and safeguarding its operations.