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Infosys Surges on Upbeat Guidance
Infosys shares jumped Friday, surpassing a 5% gain on both the BSE and NSE. This rally followed the IT giant's announcement of an increased FY26 constant-currency revenue growth guidance to 3-3.5%. The company also maintained its operating margin outlook between 20-22%. The stock's performance was mirrored by its American Depositary Receipts (ADRs), which saw significant gains.
At midday, Infosys stock traded up 5.04%, or 80 points, reaching ₹1,679.65 on the BSE. The NSE registered a similar 5.05% gain, adding 80 points to trade at ₹1,680.60. ADRs climbed sharply, hitting an intraday peak and reflecting sustained investor confidence over recent sessions.
Q3 Financials and Analyst Reactions
The stock's upward movement occurred despite a reported 2% year-on-year decline in consolidated net profit for the third quarter, which stood at ₹6,654 crore. Revenue from operations, however, demonstrated robust growth, rising 9% year-on-year to ₹45,479 crore. This performance drew mixed but largely constructive reactions from brokerages.
Nomura maintained its 'Buy' rating with a target price of ₹1,810, highlighting the revised revenue growth forecast. Elara Capital retained its 'Accumulate' rating and raised its target price to ₹1,770. The brokerage cited better-than-expected Q3 revenue, aided by the NHS deal, and improved margins. Strong performance in the first nine months of FY26 and healthy deal wins underpinned the guidance revision.
Future Outlook and Deal Wins
Elara Capital noted that achieving the revised outlook requires Q4 growth between -1.7% and +0.2%, a target they consider attainable. Signs of recovery in discretionary spending within the BFSI segment were also flagged, suggesting potential for improved client investments. This outlook is viewed positively by market watchers.
Emkay Global also held a 'Buy' rating with a target price of ₹1,750, classifying the third-quarter performance as mixed. While revenue exceeded estimates with marginal sequential growth, adjusted EBIT margin saw a slight decline. The firm pointed out that the revised guidance likely does not factor in potential revenue from the pending Telstra joint venture, indicating a degree of caution.