Infosys shares: Is IT major still a 'buy' after IT pivot? Check latest price targets

Domestic brokerage firms continue to remain positive on Infosys Ltd in the coming months, post its AI-day, following a route caused by concerns relating to artificial intelligence (AI). Infosys said AI is the fastest technology to reach 1 billion users and stressed that enterprise transformation will require deep structural changes, not incremental shifts.

Infosys, India's leading IT solutions player, unveiled its AI First Value Framework and Topaz suite at its investor day, targeting a $300–400 billion AI-first services opportunity by 2030. The strategy focuses on capturing new AI demand and augmenting existing services to expand wallet share.

While near-term revenue compression from AI-led productivity gains cannot be ruled out, management expects long-term wallet share expansion to offset this. With stable margins and improved FY27 visibility, analysts remain constructive, though execution amid slower AI diffusion is key.

Shares of Infosys dropped more than 2.58 per cent from day's high from Rs 1,401.85 to Rs 1,365.65 on Thursday, with its market capitalization slipping to Rs 5.55 lakh crore. The stock tested its 52-week low at Rs 1,281.55 on February 13, while the stock is currently 25 per cent below its 52-week high at Rs 1,848.90 hit a year ago.

Infosys highlighted that AI is currently the fastest tech innovation to reach 1 billion users and emphasised that enterprise AI transformation requires a fundamental 'root and branch surgery' rather than a simple 'lift and shift' approach. As of December 2025, the company indicated that AI programs accounted for 5.5 per cent of the total revenue, said Axis Direct.

The sequential growth trajectory suggests a stable environment rather than an improving one. Management expects performance stability to be sustained going forward with better revenue visibility in FY27. Considering its growth prospects, AI-centric initiatives and attractive valuation, we maintain 'buy' rating," it added with a target price to Rs 1,820.

Infosys affirmed it is primed to tap into new $300-400 billion AI services market by CY30, as it already serves 90 per cent of its top 200 clients. Enterprises’ technical debt would hinder AI adoption in Brownfield environment vs Greenfield, shielding its traditional services model from immediate disruption, which is comforting, said Elara Capital.

"We cannot rule out revenue compression in the near term, as AI-led productivity is passed on to clients, but clients are likely to reward higher wallet share in the long run, creating a positive net impact on revenue. We revise Infosys to 'buy' (from Accumulate), as we do not expect any major growth threat, with a lower target price of Rs 1,680 (from Rs 1,770 earlier)," it adds.

Infosys management outlined its strategy of unlocking value from AI with the ongoing tech transition, said Emkay Global. Infosys maintains margin guidance, with growth tied to AI adoption and macro conditions, while AI-first services expansion is expected to more than offset the compression in legacy services," it said with a 'buy' rating and a target price of Rs 1,750.

ICICI Direct noted that AI adoption is faster and different than prior tech cycles, but enterprise deployment lags innovation, creating a diffusion gap. The company is delivering AI services to 90 per cent of its top 200 clients, with more than 4,600 AI projects underway and over 30 offerings across 6 value pools, it said.

"Management stated enterprises prefer proprietary agentic layers atop foundation models, requiring integration, governance, and domain expertise areas where it sees sustained relevance. Execution remains key monitorable as AI diffusion lags innovation. We expect dollar revenue to grow at a CAGR of 5.8 per cent over FY26-28E. We maintain 'hold' rating with a at a lower target price of Rs 1,550," it said.