Infosys share price fell 2% in early trade on Friday after the IT major reported its Q2 results. Infosys shares declined as much as 2.05% to ₹1,442.55 apiece on the BSE.
Following the release of the company’s earnings for the second quarter of FY26, Infosys ADR (American Depository Receipt) fell 2.25% on the NYSE Thursday.
Infosys Q2 results were largely in-line with the Street estimates. The IT major also increased its lower-end of the revenue guidance for FY26.
India’s second-largest IT services company reported a net profit of ₹7,365 crore in the quarter ended September 2025, registering a growth of 6.4% from ₹6,921 crore in the previous quarter.
The company’s revenue in Q2FY26 rose 5.2% quarter-on-quarter (QoQ) to ₹44,490 crore, while revenue in dollar terms grew 2.7% QoQ to $5,076 million. At the operational level, EBIT increased 6.35% QoQ to ₹9,353 crore, while EBIT margin improved by 20 bps QoQ to 21%.
Infosys narrowed its constant currency revenue growth guidance for FY26 to between 2% to 3% from 1% to 3%. It maintained operating margin guidance of 20% – 22% for FY26.
The IT major also declared a dividend of ₹23 per share. Infosys dividend record date has been fixed as October 27, 2025.
Analysts said Infosys Q2 results were in-line with estimates with 2.2% QoQ Constant Currency (CC) revenue growth and large deal wins of $3.1 billion.
Should you buy, hold or sell Infosys shares after Q2 results?
According to brokerage firm Motilal Oswal Financial Services, Infosys’ deal bookings came in robust, up 29% YoY. However, revenue conversion still remains elusive.
“Infosys Q2 growth was a decent 2.4% QoQ CC, led by hitech and manufacturing. That said, the top end of the guidance was maintained, pointing to continued macro uncertainty and a slower-than-expected pickup in discretionary demand,” MOFSL said.
MOFSL values Infosys shares at 22x June 27E EPS. Thus, it reiterates its ‘Neutral’ rating on Infosys shares citing continued macro uncertainty as well as low appetite for transformation spends from clients. It has Infosys share price target of ₹1,650 apiece.
At 21.4x 1-year forward multiple, Infosys share price trades at 1% premium to its last 10-year average multiple, noted analysts at Systematix. The brokerage firm maintained its target multiple at 22x FY27E EPS, and raised Infosys share price target marginally to ₹1,649 apiece from ₹1,644 earlier. It reiterated a ‘Hold’ rating, as it believes Infosys stock does not offer much upside from current levels.
Centrum Broking said that Infosys outlook remains cautiously positive with continued demand in BFSI, manufacturing, and public-sector digital programs.
“While macro and regulatory uncertainties persist, strong large-deal wins, margin discipline, and stable hiring trends position the company well for sustained growth through FY26. We expect Revenue, EBITDA and PAT to clock a CAGR of 8.8%, 9.9% and 9.9% over FY25-FY28E,” Centrum Broking said.
It has revised FY26E, FY27E and FY28E EPS estimates by 0.8%, 0.5% and 0.5% for Infosys. The brokerage house maintained a ‘Buy’ call on Infosys shares and increased the target price to ₹1,951 from ₹1,942 earlier.
Infosys share price has fallen 4% in one month and declined 9% in three months. On a year-to-date (YTD) basis, the largecap IT stock has dropped 23%, while it has fallen 27% in one year. Infosys share price has gained 28% in five years.
At 10:30 AM, Infosys share price was trading 1.89% lower at ₹1,444.95 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
