Infosys share price falls nearly 4% after Q2 results, guidance cut; Check latest price targets

Shares of Infosys Ltd. fell over 3.5% on Monday, October 26, in reaction to its September quarter results, which saw the company cut its full-year revenue growth guidance. The results were reported after market hours on Friday.

The results led to the company's US-listed shares (ADRs) end nearly 7% lower on Friday night.

Infosys Shares Are A Buy Or Sell?

Citi has retained its "neutral" rating on the stock with a price target of ₹1,105. The firm has marginally revised its financial year 2027-2028 Earnings Per Share (EPS) estimates by 0% to 1%.

The new mega deal won by the company should address some concerns around Infosys starting financial year 2028 at a disadvantage to its peers after a loss of a European Manufacturing client.

Goldman Sachs has also maintained its "neutral" recommendation on the stock with a price target of ₹1,000. It highlighted the management reiterating that AI deflation is a one-time exercise, even as productivity ask by clients is high due to AI.

HSBC also has a "hold" rating on Infosys with a price target of ₹1,110. It said that the mega deal win was a positive and will contribute to 1% growth in financial year 2028.

However, it said that margins in the second half will be under stress on wage hikes.

UBS though, has a "buy" rating on Infosys with a price target of ₹1,415.

It highlighted that both revenue and margins for Infosys were below their expectations and most other parameters also remained below consensus expectations.

Nomura has maintained its "buy" recommendation on Infosys with a price target of ₹1,300, stating that the guidance cut was a tad higher than anticipated, and also added that the stock is currently trading at attractive valuations.

Infosys Cuts Full Year Guidance

For the full financial year, Infosys now expects constant currency revenue growth to be between 1% to 2%, down from their earlier projection of 1.5% to 3%. The company though, maintained its EBIT margin guidance of 20% to 22%.

This is the second straight quarter of the company cutting its guidance as the first quarter had seen them narrow the upper end of the guidance range to 3% from 3.5%.

How Did Infosys Fare In Q2?

Infosys had a relatively weak quarter as well compared to its other largecap peers, as its constant currency revenue growth of 1.2% turned out to be lower than the CNBC-TV18 poll estimate of 1.4%, while its EBIT margins, at 21%, were also lower, compared to the poll estimate of 21.3%.

Why Did Infosys Cut Guidance Again?

Infosys attributed the guidance cut to a soft second quarter, softer volumes and pricing pressure due to competitive intensity in the market. The management said that they are only taking up deals, which meet their economic guidelines and parameters.

The management also said that there is likely to be margin pressure in the second half of the financial year due to wage hikes, which would be offset through Project Maximus.

Our Q2 has been softer and our volume continues to remain softer. We have also seen pricing pressure on the back of competitive intensity and higher ask on productivity. So all that is made in our revised guidance as we look forward. On top of that, as Salil said, some of the sectors we see, softness, retail, high tech, where the discretionary is lower than what we expected. So all of that is reflected in our guidance for the revenue, which is where it's 1 to 2% now.

JAYESH SANGHRAJKA, CFO, INFOSYS

49 analysts have coverage on Infosys, of which 27 have a "buy" rating, 17 say "hold", and five have a "sell" rating.

Shares of Infosys are down 3.5% in early trading at ₹1,115. The stock, ahead of today's trading session, had declined over 30% so far in 2026.