Highlights

• HSBC Global Investment Research issued a buy rating on Infosys with a target price of ₹1,720.
• Jefferies also assigned a buy rating with a target price of ₹1,700.
• Infosys reported ₹44,490 crore in Q2 revenue, marking 8.6% year-on-year growth.

Infosys (NSE:INFY) (NYSE:INFY) has received favourable analyst attention after two global firms issued buy recommendations on the stock. HSBC Global Investment Research assigned a buy rating with a target price of ₹1,720, while Jefferies issued a buy rating with a target price of ₹1,700.

Q2 Revenue Gains and Margin Performance

For the second quarter of FY26 (Q2FY26), Infosys reported ₹44,490 crore in revenue, an increase of 8.6% YoY. In constant currency terms, revenue rose 2.9% YoY and 2.2% sequentially, supported by broad-based demand across the company’s service lines. Operating margin for the quarter stood at 21.0%, marginally higher on a sequential basis.

Basic earnings per share reached ₹17.76, which represented a 13.1% YoY increase. Free cash flow for Q2 was ₹9,677 crore, translating to a YoY rise of 38.0%, with cash conversion at 131.2% of net profit.

Infosys recorded USD 5,076 million in Q2 revenue in dollar terms, with large deal total contract value amounting to USD 3.1 billion, including a net new component of 67 percent. Employee headcount increased by 8,203 during the quarter.

Half-Year Performance Shows Steady Momentum

For the six months ended 30 September 2025, Infosys reported ₹86,769 crore in revenue, representing 8.1% YoY growth. In constant currency terms, revenue increased 3.3% YoY, while the operating margin for the period stood at 20.9%.

Basic earnings per share for the half-year rose to ₹34.47, up 10.9% YoY. Free cash flow reached ₹17,210 crore, rising 6.5% compared with the previous year, with cash conversion at 120.4% of net profit.

The company continues to report stable client activity across digital transformation, cloud-related engagements and technology modernisation, contributing to consistent operational metrics across geographies.

Guidance for FY26 Reinforces Operational Stability

Infosys has maintained its guidance for FY26, projecting revenue growth of 2% to 3% in constant currency. The company expects an operating margin range of 20% to 22%, supported by execution discipline and ongoing optimisation measures.

The buy ratings from HSBC Global Investment Research and Jefferies place emphasis on the company’s performance trajectory and FY26 expectations.

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