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Infosys (INFY)
NYSE:INFY
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Infosys (INFY) AI Stock Analysis

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INFY

Infosys

(NYSE:INFY)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
$19.50
▲(7.91% Upside)
Infosys demonstrates strong financial performance with robust revenue growth and profitability, supported by positive technical indicators. The valuation is fair, offering a reasonable P/E ratio and dividend yield. The absence of earnings call and corporate events data does not impact the score.
Positive Factors
Strategic Collaborations
The collaboration with Metro Bank and Workday to modernize finance operations showcases Infosys's ability to secure significant partnerships, enhancing its service offerings and market position.
Revenue Growth
Consistent revenue growth reflects strong market positioning and client relevance, indicating sustained demand for Infosys's services and solutions.
Long-term Contracts
Securing a long-term contract with NHS Business Services Authority ensures stable revenue streams and strengthens Infosys's presence in the public sector.
Negative Factors
Operational Efficiency
A decline in operational efficiency could pressure margins, potentially impacting profitability and competitiveness if not addressed.
Debt Levels
Increasing debt levels, although currently low, could strain financial flexibility and require careful management to avoid future financial constraints.
Cash Flow Management
A decrease in the operating cash flow coverage ratio may indicate potential challenges in cash flow management, affecting liquidity and operational funding.

Infosys (INFY) vs. SPDR S&P 500 ETF (SPY)

Infosys Business Overview & Revenue Model

Company DescriptionInfosys 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 MoneyInfosys generates revenue primarily through its IT services and consulting offerings. The company's revenue model is largely based on a time-and-materials contract structure, where clients are charged for the hours worked by consultants and developers, as well as fixed-price contracts for specific projects. Key revenue streams include service fees from the development and maintenance of software solutions, consulting services, and managed services. Additionally, Infosys earns income from its digital services, which encompass cloud computing, data analytics, and automation solutions. Significant partnerships with major technology firms, such as Microsoft and Amazon Web Services, also contribute to its earnings by enhancing its service offerings and expanding its client base. The company serves a diverse array of clients globally, which helps mitigate risk and stabilize revenue across different economic conditions.

Infosys Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Jan 14, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. Infosys reported strong revenue growth, large deal wins, and leadership in AI, but faced challenges with operating margin declines, increased attrition, and client spending caution due to macroeconomic uncertainties.
Q1-2026 Updates
Positive Updates
Strong Revenue Growth
Infosys reported a sequential revenue growth of 2.6% and a year-on-year growth of 3.8% in constant currency terms for Q1 FY '26.
Large Deal Wins
The company secured large deals worth $3.8 billion, including 55% net new deals, reflecting strong client relationships and delivery capabilities.
Enterprise AI Leadership
Infosys showcased its leadership in enterprise AI by building 300 AI agents and being recognized as a leader in Gartner's first generative AI consulting and implement services quadrant.
Cash Flow and Profitability
Infosys reported free cash flow of $884 million, which is 109% of net profit, marking the fifth consecutive quarter of free cash flows exceeding net profit.
Geographic Growth
Europe demonstrated strong performance with a 12.3% year-on-year growth, over three times the company average.
Negative Updates
Operating Margin Decline
Operating margin for Q1 was 20.8%, a decline of 20 basis points sequentially and 30 basis points year-on-year.
Increased Attrition
Attrition rates increased marginally to 14.4%.
Challenges in Manufacturing and Retail Sectors
The manufacturing segment faced challenges with decision-making delays and soft discretionary spend, while retail saw muted spending due to tariff uncertainty.
Cautious Client Spending
Clients remained cautious in their discretionary spending due to tariff and geopolitical uncertainties, leading to delayed decision-making.
Company Guidance
In the Q1 FY '26 earnings call for Infosys, 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 the free cash flow was $884 million. Large deals totaled $3.8 billion, with 55% being net new. The company revised its revenue growth guidance for FY '26 to 1%-3% in constant currency, maintaining its operating margin guidance at 20%-22%. The leadership highlighted the company's strong performance in enterprise AI, with 300 AI agents deployed across various sectors, and noted robust demand in areas like cloud and data analytics. Despite the positive start, the executives remained cautious due to ongoing global uncertainties, including tariff issues and geopolitical tensions, which continue to impact client spending and decision-making processes.

Infosys Financial Statement Overview

Summary
Infosys exhibits strong financial health with robust revenue growth and healthy profitability margins. The balance sheet is stable with low leverage, and cash flow generation is effective. Minor concerns exist regarding operational efficiency and cash flow management.
Income Statement
85
Very Positive
Infosys demonstrates strong revenue growth with a TTM growth rate of 9.33%, indicating robust demand for its services. The company maintains healthy profitability margins, with a gross profit margin of 30.52% and a net profit margin of 16.58% in the TTM period. The EBIT and EBITDA margins are also solid at 22.21% and 24.47%, respectively. These metrics suggest efficient cost management and operational effectiveness. However, the slight decline in EBIT and EBITDA margins compared to the previous annual report indicates potential pressure on operational efficiency.
Balance Sheet
80
Positive
Infosys maintains a strong balance sheet with a low debt-to-equity ratio of 0.0848, reflecting prudent financial leverage. The return on equity (ROE) is impressive at 29.55%, showcasing effective utilization of shareholders' equity to generate profits. The equity ratio stands at 64.41%, indicating a stable financial structure with a significant portion of assets financed by equity. Despite these strengths, the slight increase in debt levels compared to previous periods warrants monitoring.
Cash Flow
78
Positive
The company's cash flow position is solid, with a free cash flow growth rate of 5.96% in the TTM period, highlighting effective cash generation capabilities. The operating cash flow to net income ratio is 0.85, and the free cash flow to net income ratio is 0.93, indicating strong cash conversion from earnings. However, the operating cash flow coverage ratio has slightly decreased compared to previous periods, which could suggest potential challenges in cash flow management.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue19.68B19.28B18.56B18.21B16.31B13.56B
Gross Profit6.01B5.87B5.47B5.50B5.32B4.61B
EBITDA4.68B5.07B4.97B4.71B4.53B4.05B
Net Income3.26B3.16B3.17B2.98B2.96B2.61B
Balance Sheet
Total Assets18.06B17.42B16.52B15.31B15.55B14.82B
Cash, Cash Equivalents and Short-Term Investments5.02B4.67B3.43B2.32B3.19B3.70B
Total Debt986.00M962.53M1.00B1.01B722.00M728.00M
Total Liabilities6.38B6.17B5.92B6.09B5.56B4.32B
Stockholders Equity11.63B11.21B10.56B9.17B9.94B10.44B
Cash Flow
Free Cash Flow4.18B4.20B2.88B2.53B3.06B2.97B
Operating Cash Flow4.48B4.46B3.15B2.85B3.35B3.26B
Investing Cash Flow-1.01B-471.45M-708.00M-218.00M-1.00B-1.13B
Financing Cash Flow-2.42B-2.86B-2.12B-3.29B-3.33B-1.32B

Infosys Technical Analysis

Technical Analysis Sentiment
Positive
Last Price18.07
Price Trends
50DMA
16.80
Positive
100DMA
16.78
Positive
200DMA
17.36
Positive
Market Momentum
MACD
0.31
Negative
RSI
64.42
Neutral
STOCH
88.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INFY, the sentiment is Positive. The current price of 18.07 is above the 20-day moving average (MA) of 17.26, above the 50-day MA of 16.80, and above the 200-day MA of 17.36, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 64.42 is Neutral, neither overbought nor oversold. The STOCH value of 88.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$167.03B22.4525.82%2.28%7.36%6.18%
78
Outperform
$38.71B18.3714.50%1.55%7.44%-4.57%
77
Outperform
$287.89B36.2030.25%2.18%4.51%21.89%
76
Outperform
$74.63B22.9029.15%2.65%4.62%1.06%
74
Outperform
$30.27B18.9916.39%2.90%-1.97%48.61%
72
Outperform
$11.13B30.7510.21%14.26%-15.49%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INFY
Infosys
18.07
-4.52
-20.01%
ACN
Accenture
266.59
-85.56
-24.30%
CTSH
Cognizant
80.72
1.36
1.71%
EPAM
Epam Systems
203.60
-43.60
-17.64%
IBM
International Business Machines
307.94
83.73
37.34%
WIT
Wipro
2.85
-0.62
-17.87%

Infosys Corporate Events

Infosys Reports Stock Incentives for Key Managers
Nov 25, 2025

Infosys Limited has reported to the United States Securities and Exchange Commission about the stock incentives acquired by its Key Managerial Personnel (KMPs) as per the company’s stock option plans. In compliance with Indian regulations, Infosys disclosed the securities transactions by KMPs to the National Stock Exchange and Bombay Stock Exchange, ensuring transparency and adherence to insider trading regulations. This move underscores Infosys’s commitment to regulatory compliance and transparency in its operations, potentially reinforcing stakeholder trust.

Infosys Announces ₹18,000 Crore Share Buyback
Nov 10, 2025

On November 10, 2025, Infosys Limited announced a buyback of up to 10 crore fully paid-up equity shares, representing 2.41% of its total equity share capital, at a price of ₹1,800 per share. This buyback, approved by the shareholders and the board, aims to return an aggregate consideration of up to ₹18,000 crore to eligible shareholders through a tender offer route. The move is expected to impact the company’s capital structure and provide value to its shareholders.

Infosys Announces Share Buyback Approval Following Shareholder Vote
Nov 6, 2025

Infosys Limited announced the results of a shareholder vote conducted via a Postal Ballot, which approved the buyback of equity shares. The voting process, which concluded on November 4, 2025, saw a significant majority in favor of the buyback, with the Board of Directors having set November 14, 2025, as the record date for determining eligible shareholders. This move is part of Infosys’s strategy to enhance shareholder value and reflects the company’s robust financial health and commitment to returning capital to its shareholders.

Infosys Announces ₹18,000 Crore Share Buyback Proposal
Oct 22, 2025

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
Oct 21, 2025

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
Oct 16, 2025

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
Sep 29, 2025

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
Sep 26, 2025

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
Sep 12, 2025

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
Sep 11, 2025

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
Sep 8, 2025

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.

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.Date of analysis: Nov 27, 2025