Infosys Share Price Falls Despite Q1 Profit Meet, Expected FY26 Guidance Increase
Infosys posted revenue of Rs 42,279 crore for the April–June quarter, up 3.3% sequentially and slightly ahead of analyst estimates.
Shares of Infosys Ltd. edged 0.53% lower on Thursday despite the IT services major reporting first-quarter earnings that largely met market expectations and raised the lower end of its revenue guidance for the current fiscal year. The stock gained momentum following upbeat commentary from brokerages, which highlighted the company’s stable performance and potential for margin improvement.
Infosys posted revenue of Rs 42,279 crore for the April–June quarter, up 3.3% sequentially and slightly ahead of analyst estimates. Net profit came in at Rs 6,921 crore, a modest decline from Rs 7,033 crore in the previous quarter, but still above consensus forecasts. The company revised its FY26 revenue growth guidance to a range of 1–3%, lifting the lower end from its earlier projection of 0–3%.
Brokerages responded positively to the results, with several firms maintaining their ratings and adjusting price targets upward. BofA reiterated its “Buy” call and set a target price of Rs 1,840, citing a favorable combination of market share gains and improved pricing. The firm also noted Infosys’s strong positioning in the emerging AI services space.
Morgan Stanley described the performance as “balanced” and raised its target price to Rs 1,700 from Rs 1,670. The brokerage expects Infosys to deliver revenue growth near the top end of its guidance and sees it as the strongest EBIT growth story among large-cap IT firms in FY26.
Macquarie maintained a “Neutral” stance but trimmed its target price slightly to Rs 1,490. While it acknowledged the sequential rise in unbilled revenue, it flagged EBIT margins as being below expectations and noted that guidance did not reflect the full impact of recent acquisitions.
Infosys’s results come amid a broader recovery in tech spending, particularly in the BFSI segment, and growing interest in generative AI solutions. The company’s steady deal momentum and strategic investments in emerging technologies are seen as key drivers for future growth.
