Infosys stock surged almost 5% on Friday after the company raised its FY26 revenue growth outlook.
What drove the jump?
The IT giant said it now expects constant‑currency revenue to grow 3‑3.5% in FY26, up from its earlier 2‑3% range. It kept its operating margin target at 20‑22%.
Financial snapshot
- Q3 net profit fell 2% YoY to ₹6,654 cr, but revenue rose 9% to ₹45,479 cr.
- U.S. ADRs jumped over 10% to $19.35.
- The company booked $4.85 bn in new deals, with 57% being net new.
Analyst reactions
- Nomura: Maintains a Buy rating, target ₹1,810. Highlights stronger revenue guidance and AI‑driven growth.
- Elara Capital: Calls it Accumulate, target ₹1,770. Points to solid Q3 performance and rising demand in banking, payments and energy.
- Emkay Global: Keeps a Buy rating, target ₹1,750. Notes mixed Q3 results but appreciates the upgraded guidance.
What could investors consider?
With the guidance upgrade and steady margins, analysts are generally bullish, setting price targets above the current level. Investors may want to review their exposure to Infosys and decide if adding or holding the stock fits their strategy.
Key takeaways
- Revenue growth outlook lifted to 3‑3.5% for FY26.
- Operating margin guidance unchanged at 20‑22%.
- Analysts maintain Buy/Accumulate calls with price targets around ₹1,750‑₹1,810.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.