For the quarter ended March 31, 2026, Infosys posted a consolidated net profit of Rs 8,501 crore, up 21 per cent from Rs 7,033 crore.

Infosys share price today: The stock price of India’s second largest IT services firm fell sharply on Friday despite the company’s quarterly results beating market expectations. Infosys came under significant pressure, falling as much as 3.72 per cent to an intraday low of Rs 1,194.50 on the NSE. Its American depositary receipts also weakened, closing 4 per cent lower.For the quarter ended March 31, 2026, Infosys posted a consolidated net profit of Rs 8,501 crore, up 21 per cent from Rs 7,033 crore recorded in the same period a year earlier.Revenue from operations during the fourth quarter rose to Rs 46,402 crore, marking a 13.4 per cent increase from Rs 40,925 crore in the corresponding quarter of the previous financial year.On a sequential basis, profit after tax climbed 28 per cent from Rs 6,654 crore in Q3 FY26. Revenue also registered a quarter-on-quarter increase of 2 per cent from Rs 45,479 crore in the October-December period.Operating margin for the quarter stood at 21 per cent. While this remained unchanged from a year ago, it improved by 260 basis points compared with the previous quarter.For FY27, the company has projected constant-currency revenue growth in the range of 1.5 per cent to 3.5 per cent, while retaining its operating margin guidance at 20 per cent to 22 per cent.

Infosys stock price outlook: What brokerages are saying

Brokerage views on Infosys remain mixed, with analysts balancing near-term challenges against the company’s long-term positioning. They have expressed a measured outlook on Infosys. Jefferies has reiterated its Hold rating on the stock and lowered its target price to Rs 1,235, suggesting limited upside or downside from current levels, according to an ET report.According to the brokerage, Infosys’ March-quarter performance was largely in line with expectations. However, its FY27 revenue growth guidance of 1.5 per cent to 3.5 per cent fell short of market hopes.Jefferies also highlighted a 3 per cent sequential decline in headcount and a 19 per cent year-on-year drop in net new deal wins as areas of concern.The brokerage noted that the lower end of the guidance range reflects a more challenging macroeconomic backdrop and persistent geopolitical uncertainties, while the upper end assumes some improvement in conditions.Net new deal wins for the fourth quarter came in at $1.3 billion, down 19 per cent from a year earlier. Jefferies described this as a soft outcome, adding that the decline, coupled with the sharp reduction in workforce during the quarter, is consistent with the company’s cautious near-term growth outlook.Morgan Stanley has retained its Equal-weight recommendation on the stock, while reducing its target price to Rs 1,380 from Rs 1,760 earlier. This still implies an upside of about 11 per cent from current levels. The brokerage pointed to a weaker-than-expected fourth-quarter performance across several key parameters, along with a subdued revenue outlook.According to Morgan Stanley, Infosys’ FY27 constant-currency revenue growth guidance of 1.5 per cent to 3.5 per cent suggests little scope for a meaningful pickup in growth. Organic growth is expected to be around 2.5 per cent, broadly in line with industry peers.The brokerage also noted that the ramp-down of a major European client is likely to weigh on near-term growth. In addition, gains in productivity driven by artificial intelligence, coupled with pricing pressure, are affecting the competitiveness of the company’s core business.While Morgan Stanley has lowered its estimates, it believes earnings per share could receive some support from favourable currency movements. It also observed that the stock’s valuation has moderated and is now closer to peer levels, which could help limit downside risk. At present, the stock is trading at around 15.8 times earnings.Motilal Oswal Financial Services, on the other hand, has reiterated its Buy rating on Infosys, keeping its target price unchanged at Rs 1,450. This implies a potential upside of roughly 17 per cent.The brokerage said Infosys’ FY27 revenue growth guidance of 1.5 per cent to 3.5 per cent in constant currency—or 1.25 per cent to 3.25 per cent on an organic basis—is below its expectations at the upper end. It believes this points to increasing pressure on the company’s existing business portfolio.Motilal Oswal highlighted that the growing adoption of artificial intelligence is compressing the core business, as efficiency gains are increasingly being passed on to clients. It added that this trend is being amplified by intense competition and pricing pressure in an environment of weak demand.The brokerage expects this deflationary impact to continue. For FY27, it has built in organic growth at the midpoint of management’s guidance, around 2.5 per cent, indicating a moderation from FY26 constant-currency growth of 3.1 per cent.Meanwhile, HDFC Securities has also maintained its Buy recommendation on the stock, with an unchanged target price of Rs 1,550.HDFC Securities said fourth-quarter revenue was affected by seasonal weakness and slower decision-making by clients. It also noted that Infosys’ FY27 revenue growth guidance fell short of expectations, underscoring persistent macroeconomic uncertainty.According to the brokerage, demand conditions remain soft, with clients continuing to prioritise cost optimisation over large-scale transformation projects.In view of the slower growth outlook, HDFC Securities has reduced its earnings estimates by around 2 per cent to 3 per cent. It currently values the stock at 18 times its estimated earnings per share for March 2028.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)