Infosys (INFY)
NYSE:INFY
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Infosys
(NYSE:INFY)
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Rating:73Outperform
Price Target:
$14.50
▲(9.10% Upside)
Action:ReiteratedDate:03/20/26
INFY scores well primarily on strong financial quality (profitability, low leverage, high ROE) and a supportive earnings update (raised revenue guidance and strong deal wins). The score is held back by weak technicals (clear downtrend despite oversold readings) and a valuation that is supported by yield but not clearly cheap on P/E.
Positive Factors
Strong balance sheet & high ROE
Infosys’s very low leverage and consistently high ROE indicate durable financial resilience and capital efficiency. A strong equity base and minimal debt provide flexibility for investments, buybacks or cyclical cushioning, supporting long-term strategic initiatives without pressuring cash flow.
Negative Factors
Decelerating revenue momentum
A multi-year slowdown in top-line growth constrains operating leverage and limits the runway for margin expansion. Slower organic growth increases dependence on large, episodic deals and efficiency programs to sustain earnings growth, raising execution risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet & high ROE
Infosys’s very low leverage and consistently high ROE indicate durable financial resilience and capital efficiency. A strong equity base and minimal debt provide flexibility for investments, buybacks or cyclical cushioning, supporting long-term strategic initiatives without pressuring cash flow.
Read all positive factors
Infosys (INFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.00B
Dividend Yield2.58%
Average Volume (3M)17.68M
Price to Earnings (P/E)24.5
Beta (1Y)0.77
Revenue Growth4.62%
EPS Growth1.06%
CountryUS
Employees300,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.18
Shares Outstanding4,055,591,800
10 Day Avg. Volume12,513,447
30 Day Avg. Volume17,683,163
Financial Highlights & Ratios
PEG Ratio-18.42
Price to Book (P/B)6.74
Price to Sales (P/S)3.92
P/FCF Ratio18.49
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue2.78
Enterprise Value/Gross Profit9.26
Enterprise Value/Ebitda12.10
Forecast
1Y Price Target
$17.66Price Target Upside32.88% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)0.83
Revenue Forecast (FY)$20.98B
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 ...
How the Company Makes Money
Infosys primarily makes money by delivering contracted technology and consulting services to enterprise clients. Its revenue model is largely services-led and is recognized based on the delivery of work under customer contracts (e.g., time-and-mat...
Infosys 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 emphasized multiple clear positives: upgraded revenue guidance, strong large‑deal signings (including a $1.6B NHS deal), robust free cash flow, and accelerating AI traction and capabilities (thousands of AI projects, millions of lines of AI‑generated code). Management is investing heavily in freshers and AI talent and reported adjusted margin stability/expansion after adjusting for one‑offs. Key negatives are a one‑time INR 1,289 crore labor‑code charge with a modest ongoing ~15 bps drag, some reported margin volatility from furloughs/variable pay and lower utilization from training, and continued softness in segments like retail and pockets of North America. Overall, the strategic strength, cash generation and upward guidance outweigh the transitory headwinds.Positive Updates
Revenue Growth and Upgraded Guidance
Q3 revenue grew 0.6% sequentially and 1.7% year‑over‑year in constant currency. Management raised FY revenue growth guidance to 3.0%–3.5% in constant currency (operating margin guidance unchanged at 20%–22%).
Negative Updates
Labor Code One‑Time Charge and Ongoing Impact
Incurred an INR 1,289 crore impact this quarter related to Indian labor code changes (accrued through Dec‑end). Management flagged an ongoing annual headwind of roughly 15 basis points to margins going forward.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth and Upgraded Guidance
Q3 revenue grew 0.6% sequentially and 1.7% year‑over‑year in constant currency. Management raised FY revenue growth guidance to 3.0%–3.5% in constant currency (operating margin guidance unchanged at 20%–22%).
Read all positive updates
Company Guidance
Management raised FY revenue guidance to 3.0–3.5% growth in constant currency while keeping FY operating‑margin guidance at 20–22%; in Q3 revenue grew 0.6% sequentially and 1.7% YoY (cc), adjusted operating margin was ~21.2% (9‑month margin ~21% midpoint) and adjusted margins expanded ~20 bps sequentially excluding labour‑code effects. They signed $4.8bn of large deals (26 deals, 57% net‑new) including a $1.6bn NHS win, generated $915m free cash flow, onboarded roughly 18,000 freshers toward a 20,000 target, and flagged AI scale—working with ~90% of the top 200 clients on ~4,600 AI projects, generating >28m lines of AI‑assisted code and building >500 agents. Management also disclosed a one‑time labour‑code charge of INR 1,289 crore with an ongoing ~15 bps annual impact, and said currency (~40 bps) and Project Maximus (~50 bps) aided margin expansion; more detail will be shared at Investor Day.Infosys Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.85B | 19.28B | 18.56B | 18.21B | 16.31B | 13.56B |
| Gross Profit | 5.95B | 5.87B | 5.59B | 5.50B | 5.32B | 4.73B |
| EBITDA | 4.55B | 5.07B | 4.97B | 4.71B | 4.53B | 4.05B |
| Net Income | 3.21B | 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 | 3.35B | 2.36B | 3.23B | 3.75B |
| Total Debt | 978.64M | 962.00M | 1.00B | 1.01B | 722.00M | 728.00M |
| Total Liabilities | 6.67B | 6.17B | 5.92B | 6.09B | 5.56B | 4.32B |
| Stockholders Equity | 9.24B | 11.21B | 10.56B | 9.17B | 9.94B | 10.44B |
Cash Flow | ||||||
| Free Cash Flow | 3.80B | 4.09B | 2.88B | 2.53B | 3.06B | 2.97B |
| Operating Cash Flow | 4.09B | 4.35B | 3.15B | 2.85B | 3.35B | 3.26B |
| Investing Cash Flow | -50.26M | -361.00M | -708.00M | -218.00M | -1.00B | -1.13B |
| Financing Cash Flow | -4.54B | -2.88B | -2.12B | -3.29B | -3.33B | -1.32B |
Infosys Technical Analysis
Negative
13.29
Price Trends
14.47
Negative
16.24
Negative
16.58
Negative
Market Momentum
-0.20
Negative
41.95
Neutral
53.98
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 13.29 is below the 20-day moving average (MA) of 13.34, below the 50-day MA of 14.47, and below the 200-day MA of 16.58, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 41.95 is Neutral, neither overbought nor oversold. The STOCH value of 53.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INFY.
Infosys Risk Analysis
Infosys disclosed 58 risk factors in its most recent earnings report. Infosys 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 Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $114.21B | 17.31 | 24.82% | 2.25% | 6.58% | 1.19% | |
73 Outperform | $58.00B | 24.55 | 29.68% | 2.58% | 4.62% | 1.06% | |
70 Outperform | $222.48B | 26.07 | 36.86% | 2.21% | 4.51% | 21.89% | |
68 Neutral | $27.70B | 17.90 | 14.84% | 1.46% | 7.44% | -4.57% | |
68 Neutral | $6.46B | 30.32 | 10.27% | ― | 14.26% | -15.49% | |
67 Neutral | $23.05B | 21.25 | 15.49% | 2.78% | -1.97% | 48.61% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
INFY
Infosys
13.29
-3.30
-19.91%
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Infosys Corporate Events
Infosys Discloses Stock Incentives for Key Management in March 2026 Filing
Mar 17, 2026
Infosys has reported stock incentives acquired by its key managerial personnel under the company’s stock option plans, filing the disclosure with the U.S. Securities and Exchange Commission on March 17, 2026. The filing aligns with Indian in...
Infosys Files Investor AI Day 2026 Transcript With U.S. SEC
Feb 25, 2026
Infosys disclosed that on February 24, 2026, it notified stock exchanges about the availability of the transcript for its Investor AI Day 2026, and has furnished this material to the U.S. Securities and Exchange Commission via a Form 6-K filing. T...
Infosys Files Form 6-K Updating Markets on McCamish Cyber Incident
Dec 31, 2025
Infosys disclosed in a Form 6-K dated December 23, 2025, that it has provided stock exchanges with an update on a cyber incident involving its McCamish business unit, issuing a formal company statement as an exhibit to the filing. While the brief ...
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.