Highlights

• Infosys holds an overall Buy rating, with broker targets ranging from ₹1,800 to over ₹2,000.
• INFY shares jumped over 5% to ~₹1,686, despite a 12% YoY decline.
• Q3 FY26 revenue at USD 5.1 billion; 1.7% YoY growth in constant currency.
• Healthy Deal Wins: Large deal TCV at $4.8 billion, with 57% from net new business.
• Positive FY26 Outlook: Revenue growth guided at 3.0%–3.5% with operating margins of 20%–22%.

Infosys Ltd (NSE:INFY) has received a favourable endorsement from the analyst community, with the company currently carrying an overall ‘Buy’ recommendation. The latest consensus reflects sustained confidence in the stock, even as market conditions remain selective for large-cap technology companies. The analyst-backed rating places Infosys in a favourable position within the Indian IT services and consulting space.

As of the most recent trading session, Infosys shares were trading around INR 1,686 on the National Stock Exchange, marking a single-day gain of over 5%. Despite some volatility over the past year, the renewed analyst confidence has supported near-term momentum in the stock price.

Analysts’ Rating Signal Upside

Infosys has seen renewed buying interest in recent sessions, with the stock gaining nearly 6% over the last five days and dropping by over 12 percent on a year-on-year.

Several prominent brokerage houses have reiterated their positive stance on the stock. Firms such as Motilal Oswal Securities, AMSEC, JM Financial Institutional Securities, Centrum Broking, and Anand Rathi Securities have maintained ‘Buy’ recommendations, with individual target prices ranging from about INR 1,800 to over INR 2,000.

Quarterly Financial Performance (Q3 FY26)

Infosys reported revenues of USD 5,099 million for the quarter ended December 31, 2025, recording a year-on-year growth of 1.7% and a quarter-on-quarter growth of 0.6% in constant currency terms. Reported revenues stood at ₹45,479 crore, reflecting an 8.9% year-on-year increase. The IFRS operating margin was 18.4%, while the adjusted operating margin improved sequentially to 21.2%.

Profitability and Cash Flow

During the quarter, IFRS basic EPS was ₹16.17 and adjusted basic EPS was ₹18.53. Free cash flow amounted to ₹8,176 crore, while adjusted free cash flow stood at ₹8,626 crore, representing 113.1% of adjusted net profit, highlighting strong cash conversion and financial discipline.

Deal Wins and Workforce

Infosys recorded large deal wins with a total contract value (TCV) of $4.8 billion, of which 57% was net new business. The company added 5,043 employees during the quarter.

Nine-Month Financial Performance (YTD December 2025)

For the nine months ended December 31, 2025, revenues grew by 2.8% year-on-year in constant currency terms. Reported revenues were ₹132,248 crore, reflecting an 8.3% year-on-year increase. The IFRS operating margin stood at 20.0%, while the adjusted operating margin was 21.0%.

Earnings and Cash Flow (Nine Months)

IFRS basic EPS for the nine-month period was ₹50.64, with adjusted basic EPS at ₹52.99. Free cash flow reached ₹25,386 crore, and adjusted free cash flow was ₹25,836 crore, translating into an adjusted free cash flow conversion of 117.8% of adjusted net profit.

FY26 Outlook

Infosys has guided for revenue growth of 3.0%–3.5% in constant currency for FY26. The company expects operating margins to remain in the range of 20%–22%.

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