Infosys' stock surged more than 5% on Friday after the company lifted its revenue growth forecast for the current fiscal year.
What drove the share rally?
The IT services firm posted a modest 2.2% rise in quarterly revenue to ₹45,479 crore and said it expects revenue growth of 3%‑3.5% in constant‑currency terms for FY26, up from its earlier 2%‑3% view.
Quarterly numbers in plain terms
- Net profit fell 9.6% to ₹6,654 crore.
- Revenue grew 2.2% quarter‑on‑quarter, or 0.5% in U.S. dollars.
- EBIT increased 1.3% to ₹9,479 crore, but the EBIT margin slipped to 20.8% from 21%.
Why the guidance upgrade matters
Management highlighted a healthy pipeline of deals worth $4.8 billion, a 92% jump from a year earlier, and said AI‑driven projects in finance, energy and utilities are picking up.
Analyst takeaways
ICICI Securities expects Infosys' FY27 revenue growth to beat FY26, forecasting 4.7%‑5.7% year‑on‑year in constant currency. The broker keeps a “Hold” rating with a target of ₹1,630.
JM Financial raised its FY26 growth estimate to the top end of the guidance and lifted its price target to ₹1,930, maintaining a “Buy” call.
Recent stock performance
- Up 5% in the past month.
- Up 14% over the last three months.
- Down 13% over the past year, but up 24% over five years.
Bottom line for investors
The stock’s short‑term bounce reflects optimism around higher revenue growth and strong deal wins. However, earnings margins slipped and profit fell, so investors should weigh both the upside and the risks.
Remember, this is perspective, not a prediction. Do your own research or consult a qualified advisor before making any investment decisions.