Infosys Q4 Result Review: Brokerages Cut Target Prices Citing 'Subpar' Growth

Infosys shares are in focus heading into trade on Friday after a slew of brokerages issued target price cuts on the counter, in the wake of its disappointing fourth quarter earnings for the financial year ending March 2026. The list of brokerages issuing these cuts includes Kotak Securities, Jefferies and Citi.

This comes on the back of Infosys' Q4 results, where the IT major performed largely in line with expectations but ended the year showcasing subpar growth, while the revenue guidance for FY27 was also underwhelming, as per brokerages. 

Infosys Ltd.'s CC growth declined by 1.3% to 3.1%, clocking the sharpest decline in four quarters, while net profit stood at Rs 8,501 crore versus the estimate of Rs 7,398 crore.

Revenue advanced by 2% year-on-year for the three months ended March, reaching Rs 46,402 crore in comparison to Rs 45,479 crore. Operating income, or earnings before interest and taxes, rose 3% year-on-year to Rs 9,743 crore. The EBIT margin expanded to 21% from the earlier 20.8% in the previous quarter.

Brokerages on Infosys

Kotak Securities on Infosys

• Maintain Buy; Cut TP to Rs 1440 from Rs 1530
• FY27E: Another year of subpar growth
• Q4FY26 revenue misses estimates on lower third-party items and slower March
• Guidance of 1.5-3.5% embeds client-specific headwinds; H1 stronger than H2
• Four tough years will weigh on multiples

BofA on Infosys

• Maintain Buy with TP of Rs 1570
• Growth uptick to wait some more
• Q4 and FY27 rev guide below expectation
• Margin management and AI investments tracking well
• FY27 growth is expected to be led by financial services and energy while manufacturing, retail and telecom could lag
• H1 is expected to be stronger than H2

Jefferies on Infosys

• Maintain Hold; Cut TP to Rs 1235 from Rs 1290
• Growth concerns to weigh on stock
• Manufacturing vertical and key regions drag growth:
• FY27 growth guidance disappoints
• See Multiple growth headwinds
• Expect Infosys to deliver 7% recurring EPS CAGR.
• While 4% dividend yield caps downsides, a worsening growth outlook limits upsides

Citi on Infosys

• Maintain Neutral; Cut TP to Rs 1300 from Rs 1395
• Weak Q4; FY27 Guidance Largely Inline
• Believe Infosys will continue to deliver better performance compared to peer group in FY27 as well
• Large-cap Q4 performance suggests continued sluggish trends & increased challenges
• Continue to be cautious in the sector

ALSO READ: Infosys Q4 Results: Profit Surges 28%, FY27 Growth Seen At 1.5%-3.55%

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