Infosys shares fall 5% to hit 52-week low post Q4 show; should you buy, sell or hold?
India's second largest IT solutions player Infosys reported a mixed set of numbers for the March 2026 quarter but weak FY27 guidance soured the sentiments.
- Apr 24, 2026,
- Updated Apr 24, 2026 11:05 AM IST
Infosys target price: India's second largest IT solutions player Infosys Ltd reported a mixed set of numbers in the quarter ended on March 31, 2026 but weak FY27 guidance soured the sentiments. As a result, the stock tumbled nearly 5 per cent to hit 52-week lows on Friday, with analysts trimming their target prices. However, they mostly maintained their positive stance on it.
Infosys Q4 results
For FY27, Infosys cut its guidance as it gave a revenue growth at 1.5-3.5 per cent in constant currency, operating margin at 20-22 per cent. The IT major's dollar revenue increased 6.6 per cent YoY to $5,040 million, while the deal win stood at Rs $14.9 billion in FY26. It reports a health cash flow of $3.7 billion.
In the March 2026 quarter, Infosys reported a 20.9 per cent YoY jump in the net profit at Rs 8,501 crore, while revenue rose 13.4 per cent YoY to Rs 46,402 crore. The IT solutions player's Ebit rose 13.6 per cent YoY to Rs 9,743 crore, while margins came in at 21 per cent. The company board announced a final dividend of Rs 25 per share for FY26.
Infosys share price
Shares of Infosys tanked over 4.6 per cent to Rs 1,185.20 on Friday, hitting its 52-week high, with its market capitalization barely holding to Rs 4.8 lakh crore mark. Shares of Infosys have tumbled nearly 32 per cent in less than 3 months, from its 52-week high at Rs 1,727.85, hit on February 03, 2026. The stock has tumbled nearly 25 per cent in the six months.
Infosys target price
Guidance for FY27 is maintained at 1.5-3.5 per cent YoY cc and Adjust Ebit margin guidance was maintained in the 20-22 per cent range. Large deal TCV stood at $3.2 billion, down 33.3 per cent QoQ. The book-to-bill ratio was 0.6. For FY26, revenue, adjusted EBIT and adjusted PAT grew 9.6 per cent, 8.9 per cent and 13.7 per cent YoY in rupee terms, said Motilal Oswal Financial Services.
"In 1QFY27, we expect Infosys revenue, adjusted EBIT and PAT to grow 13.7 per cent, 15.5 per cent and 13.7 per cent YoY, respectively. Free cash flow stood at 125 per cent of net profit for FY26. RoE came in at 31.9 per cent in FY26. We value Infosys at 17x FY28E EPS with a TP of INR1,450," it added.
Infosys reported Q4FY26 results – revenue and margins were below expectations. Revenue declined 1.3 per cent cc QoQ vs expectation of 0.5% cc QoQ decline. EBIT margins at 20.9 per cent – missing expectations, said JM Financial. Margin headwinds for FY27 also includes a potential 70bps dilutive impact from acquisitions, it said.
JM Prefer Infosys among the top 6 Indian IT companies given healthy large deal wins. Valuations are at 16 times FY27 consensus EPS. "We revise our EPS estimates down by 1-2 per cent over FY27-28E, incorporating 4Q results. Maintain target multiple of 19 times September 2027 – revised target price of Rs 1,500," it added with a 'buy' rating.
Infosys delivered a stable quarter with broadly positive full-year performance, though FY27 outlook and guidance weighed on the overall outlook. The record $15 billion deal wins and the 24 per cent YoY TCV growth are genuine positives which underpin revenue visibility for FY27, said Choice Institutional Equities.
"While narrowing down the guidance range signals confidence, the FY27 midpoint of 2.5% CC growth suggests only a modest improvement over FY26’s underlying growth. Factoring in the muted outlook, we forecast revenue, Ebit and PAT to grow at a CAGR of 9.3 per cent, 9.9 per cent and 8 per cent over FY26–FY29E," it added with a trimmed target price of Rs 1,500.
Infosys’ organic growth guidance of 2.2 per cent YoY CC (at mid-point) for FY27 – lower than 2.4 per cent organic growth delivered in FY26 – despite strong bookings and better exit rate vs last year is due to client-specific issues in large European manufacturing client; lower onsite revenue mix; and AI-led compression, said ICICI Securities. We note that deal TCV growth for FY26 is strong at 28% YoY and the company has executed well on improving realisation in FY26, as volume growth was flat. Management acknowledged increased competitive intensity due to rapid advancement in AI. This adds to uncertainty around the quantum of AI-led compression," it added with an 'hold' rating and a target price of Rs 1,300.
Infosys target price: India's second largest IT solutions player Infosys Ltd reported a mixed set of numbers in the quarter ended on March 31, 2026 but weak FY27 guidance soured the sentiments. As a result, the stock tumbled nearly 5 per cent to hit 52-week lows on Friday, with analysts trimming their target prices. However, they mostly maintained their positive stance on it.
Infosys Q4 results
For FY27, Infosys cut its guidance as it gave a revenue growth at 1.5-3.5 per cent in constant currency, operating margin at 20-22 per cent. The IT major's dollar revenue increased 6.6 per cent YoY to $5,040 million, while the deal win stood at Rs $14.9 billion in FY26. It reports a health cash flow of $3.7 billion.
In the March 2026 quarter, Infosys reported a 20.9 per cent YoY jump in the net profit at Rs 8,501 crore, while revenue rose 13.4 per cent YoY to Rs 46,402 crore. The IT solutions player's Ebit rose 13.6 per cent YoY to Rs 9,743 crore, while margins came in at 21 per cent. The company board announced a final dividend of Rs 25 per share for FY26.
Infosys share price
Shares of Infosys tanked over 4.6 per cent to Rs 1,185.20 on Friday, hitting its 52-week high, with its market capitalization barely holding to Rs 4.8 lakh crore mark. Shares of Infosys have tumbled nearly 32 per cent in less than 3 months, from its 52-week high at Rs 1,727.85, hit on February 03, 2026. The stock has tumbled nearly 25 per cent in the six months.
Infosys target price
Guidance for FY27 is maintained at 1.5-3.5 per cent YoY cc and Adjust Ebit margin guidance was maintained in the 20-22 per cent range. Large deal TCV stood at $3.2 billion, down 33.3 per cent QoQ. The book-to-bill ratio was 0.6. For FY26, revenue, adjusted EBIT and adjusted PAT grew 9.6 per cent, 8.9 per cent and 13.7 per cent YoY in rupee terms, said Motilal Oswal Financial Services.
"In 1QFY27, we expect Infosys revenue, adjusted EBIT and PAT to grow 13.7 per cent, 15.5 per cent and 13.7 per cent YoY, respectively. Free cash flow stood at 125 per cent of net profit for FY26. RoE came in at 31.9 per cent in FY26. We value Infosys at 17x FY28E EPS with a TP of INR1,450," it added.
Infosys reported Q4FY26 results – revenue and margins were below expectations. Revenue declined 1.3 per cent cc QoQ vs expectation of 0.5% cc QoQ decline. EBIT margins at 20.9 per cent – missing expectations, said JM Financial. Margin headwinds for FY27 also includes a potential 70bps dilutive impact from acquisitions, it said.
JM Prefer Infosys among the top 6 Indian IT companies given healthy large deal wins. Valuations are at 16 times FY27 consensus EPS. "We revise our EPS estimates down by 1-2 per cent over FY27-28E, incorporating 4Q results. Maintain target multiple of 19 times September 2027 – revised target price of Rs 1,500," it added with a 'buy' rating.
Infosys delivered a stable quarter with broadly positive full-year performance, though FY27 outlook and guidance weighed on the overall outlook. The record $15 billion deal wins and the 24 per cent YoY TCV growth are genuine positives which underpin revenue visibility for FY27, said Choice Institutional Equities.
"While narrowing down the guidance range signals confidence, the FY27 midpoint of 2.5% CC growth suggests only a modest improvement over FY26’s underlying growth. Factoring in the muted outlook, we forecast revenue, Ebit and PAT to grow at a CAGR of 9.3 per cent, 9.9 per cent and 8 per cent over FY26–FY29E," it added with a trimmed target price of Rs 1,500.
Infosys’ organic growth guidance of 2.2 per cent YoY CC (at mid-point) for FY27 – lower than 2.4 per cent organic growth delivered in FY26 – despite strong bookings and better exit rate vs last year is due to client-specific issues in large European manufacturing client; lower onsite revenue mix; and AI-led compression, said ICICI Securities. We note that deal TCV growth for FY26 is strong at 28% YoY and the company has executed well on improving realisation in FY26, as volume growth was flat. Management acknowledged increased competitive intensity due to rapid advancement in AI. This adds to uncertainty around the quantum of AI-led compression," it added with an 'hold' rating and a target price of Rs 1,300.