Infosys Ltd. share price target

We recommend a HOLD rating on the stock.

Infosys reported a soft Q1 FY27 with revenue of $5,082mn, up 1.0% q/q cc (-0.1% organic). Three factors which drove the weakness: a ~50bps impact due to an EURS program termination late in the Q, higher volumes softness than plan & lower price realisation than expected due to -- client productivity asks & competitive intensity.

AI Services at an Inflection Point: AI has moved beyond narrative to become a meaningful growth driver, with its revenue contribution rising from 5.5% in Q3 FY26 to 8.2% in Q1 FY27, implying an annualized run rate of nearly $1.7 Bn.

Infosys delivered a soft quarter with Q1FY27 revenue growth of 2.4% YoY / 1% QoQ in CC terms, missing the upper end of prior guidance. Management cut FY27 revenue guidance to 1.53% (from 23.5%), citing a one-time Energy, Utilities, Resources and Services (EURS) client termination (~50bps), continued weakness in European manufacturing (deal walk aways, >1% drag), and softerthan-expected pricing/volume trends amid intensifying AI-led productivity deflation. Operating margin held at 21.1% (+20bps QoQ), with guidance retained at 2022%, supported by currency...

Infosys cut its organic revenue growth guidance to 0.55% YoY CC (at mid-point) for FY27 (vs. 2.2% earlier) due to weaker-thanexpected growth in seasonally strong Q1.

Infosys (INFO) reported 1QFY27 revenue of USD5.1b, up 0.8% QoQ. In CC, it was up 1% QoQ, below our estimate of 2% QoQ. Adj. EBIT margin stood at 21.1%, below our estimate of 21.4%.

We expect Infosys to report a steady Q1FY27 with USD revenue of USD 5,108 Mn (+1.4% QoQ, +3.4% YoY), implying CC growth of ~1.4% QoQ, supported by a two month contribution from the Optimum Healthcare and Stratus acquisitions (~0.8% inorganic).

Infosys continues to navigate a measured demand environment, with clients staying guarded on spending but consistently prioritising cost-efficiency and optimisationled programmes. The company remains well aligned with evolving client needs because of its strong positioning in artificial intelligence (AI) services, anchored by the Topaz platform and supported by strategic partnerships across the AI ecosystem. The management's commentary indicates healthy deal momentum and a supportive pipeline, which should aid execution visibility and sustain business...

We recommend a HOLD rating on the stock.

Infosys’ organic growth guidance of 2.2% YoY CC (at mid-point) for FY27 – lower than 2.4% organic growth delivered in FY26 despite strong bookings and better exit rate vs last year is due to: client-specific issues in large European manufacturing client; lower onsite revenue mix; and AI-led compression.

Infosys delivered a solid Q4FY26 with revenue growing 4.1%YoY in constant currency, while full-year FY26 revenue crossed USD 20bn with 3.1% CC growth, finishing within the upgraded guidance band. Large deal momentum was exceptional, with full-year deal TCV stood at USD 14.9bn, up 24%YoY, including 96 deals of which 55% were net new, reflecting strong client relevance and competitive positioning. Operating margin for Q4 stood at 20.9%, with full-year adjusted margin remained stable at 21%, as currency and Project Maximus gains are reinvested into AI talent, sales and partnerships. Financial services,...

Infosys’ outlook is defined by its transition toward AI-led value creation and realization-led growth, effectively navigating a volatile macro environment.

The revenue growth performance (-1.2% CC QoQ) was below our estimates (-0.6% QoQ CC), attributed to seasonality and slower deal ramp ups. Geo-political conflicts and AI deflationary impact pose incremental risk to FY27E growth, which is reflected in the organic revenue guidance (1.5%-3.5% CC). However, the number of large deals wins at 96 (including 3 mega deals) and NN large deal TCV at USD8.2b (+24% YoY) are encouraging, which appears to have misaligned to growth anticipation in FY27E. The guidance is factoring-in around ~75-100bps impact of planned ramp down with a European client and right-shoring impact of ~40-50bps, otherwise each of these...

4Q revenue a tad weaker than estimate. FY27 organic revenue growth guidance in CC terms at 2.25% lower than 2.4% in FY26

AI positioning and execution strength offset by demand uncertainty: Infosys is strengthening its AI-led capabilities through partnerships (OpenAI, Google, NVIDIA, etc.) and focusing on large-scale modernization opportunities, which...

Infosys (INFO) reported 4QFY26 revenue of USD5b, down 1.2% QoQ. In CC, it was down -1.3% QoQ, below our estimate of -0.7% QoQ. Adj. EBIT margin stood at 21%, below our estimate of 21.2%.

Domain-Led Acquisitions Strengthen Vertical Capabilities: Acquisitions of Optimum Healthcare and Stratus enhance Infosys' presence in healthcare and insurance, adding deep domain expertise and improving access to high-value, regulated transformation deals. AI-First Strategy Drives Enterprise-Wide Transformation Positioning: Infosys' AI-first framework embeds AI across ~90% of top client engagements, positioning it as an end-to-end enterprise AI orchestrator with strong monetization visibility. Margin Resilience Despite Growth Investments: Operating margins remain...

Infosys has signed definitive agreements to acquire Optimum Healthcare IT (up to USD465mn; ~1.7x P/S) and Stratus Global LLC (up to USD95mn; ~2.2x P/S), with a combined cash consideration of ~USD560mn.

The Company’s strategic decision is fundamentally anchored in becoming an AI-first enterprise transformation partner, as articulated during its Investor AI Day.

Navigating its next with an AI first value framework About the stock: Infosys is one of the leading IT players catering to BFSI, Retail, Infosys at its investor day, unveiled its AI First Value Framework and Topaz suite, targeting a US$300400 bn AI-first services opportunity by 2030 (Nasscom McKinsey). The strategy focuses on capturing new AI demand and augmenting...