Infosys Share Price: Infosys Ltd is likely to see strong buying interest on Friday, January 16, after several brokerages raised their target prices following a positive guidance surprise from the company.
Infosys revised its FY26 constant-currency revenue growth guidance upward to 3–3.5 per cent from the earlier 2–3 per cent range, signalling improving demand conditions.
Infosys American Depositary Receipts (ADRs) surged 10 per cent overnight after the guidance upgrade, pointing to a potential sharp move in the stock when domestic markets reopen. Indian stock markets are closed today due to the Maharashtra municipal elections.
The upgraded outlook stands out at a time when large-cap Indian IT services companies continue to grapple with cautious client spending, longer decision-making cycles and persistent margin pressures from regulatory and wage-related costs.
Mixed Q3 numbers, but guidance lifts sentiment
Infosys reported a 2 per cent year-on-year decline in consolidated net profit to Rs 6,654 crore for the December quarter, compared with Rs 6,806 crore a year ago. Revenue from operations, however, rose 9 per cent to Rs 45,479 crore. The company also maintained its FY26 margin guidance at 20–22 per cent.
Should you buy, sell or hold?
Jefferies
Jefferies maintained its Buy rating with a target price of Rs 1,880, implying an upside potential of 17 per cent. The brokerage believes the upgraded FY26 revenue guidance largely reflects Q3 outperformance rather than a meaningful improvement in Q4 demand, despite management’s upbeat commentary.
It said Q4 growth guidance is broadly in line with earlier second-half expectations, suggesting the revision is mainly driven by the Q3 beat. Jefferies raised its revenue estimates by up to 1 per cent and expects Infosys to deliver a 7.5 per cent recurring EPS CAGR over FY26–28.
Nomura
Nomura reiterated its Buy rating and target price of Rs 1,810, retaining Infosys as its top large-cap pick in Indian IT services. The brokerage noted that Infosys delivered a revenue beat in Q3FY26, supported by steady demand, although margins were marginally below expectations.
While net profit declined year-on-year, revenue growth in both rupee and dollar terms exceeded consensus estimates. Nomura described the overall performance as resilient, with execution strength offsetting near-term margin pressures.
Centrum
Centrum remained positive on Infosys, maintaining a Buy rating with a target price of Rs 2,076, which implies an upside of 29 per cent. The brokerage cited sustained traction in BFSI and rising adoption of AI-led services as key drivers.
Centrum said the guidance upgrade reflects management’s confidence in the demand environment, supported by a strong deal pipeline and large deal wins. Despite macro and regulatory uncertainties, it expects disciplined margins, stable hiring and execution strength to support healthy CAGRs in revenue, EBITDA and profit over the medium term.
Emkay
Emkay reiterated its Buy call with a target price of Rs 1,750, highlighting management’s focus on six AI-led value pools as a major long-term growth driver. These areas are expected to unlock incremental opportunities as Infosys deepens partnerships and client engagement.
Q3 growth was led by Life Sciences, BFSI and Manufacturing, while Europe outperformed geographically. Emkay said strong large-deal momentum, including multiple mega deals, reinforces confidence in Infosys’ ability to gain market share despite near-term volatility.
Antique
Antique maintained a Hold rating with a target price of Rs 1,780. It said the revised FY26 guidance implies muted-to-modest sequential growth in Q4, reflecting continued caution in discretionary spending.
However, Antique noted that Infosys’ market-share gains and management’s expectation of CY26 improving over CY25 support the medium-term outlook. With the stock having corrected sharply over the past year, valuations have normalised closer to long-term averages, prompting the brokerage to marginally raise EPS estimates and its valuation multiple.
Infosys shares ended Thursday’s session at Rs 1,609 on the NSE, down 0.6 per cent from the previous close.
