Infosys share price: Should you buy this IT stock post Q2 results? Here are target prices

IT major Infosys reported better-than-expected revenue growth for the September quarter, while its margins were in line with Street estimates. The management raised its FY26 revenue growth guidance to 2–3 per cent from 1–3 per cent, excluding any contribution from the Tesla joint venture, and maintained its EBIT margin forecast at 20–22 per cent. The company reported total contract value (TCV) of 3.1 billion dollars, with 67 per cent net new deals. Despite this, a couple of brokerages remained 'neutral' on the stock. 
 
Nuvama Institutional Equities said Infosys delivered decent growth on a high base in the first quarter, without the benefit of third-party contributions. “Deal wins were steady and the guidance upgrade was along expected lines, given the macro uncertainty,” it said. The brokerage has marginally raised its FY26E and FY27E EPS estimates by 1.7 per cent and 1.3 per cent, respectively. It rolled forward valuation to 23 times (earlier 25 times) the average FY27–28 PE, retaining its ‘BUY’ rating with a target price of Rs 1,800 (earlier Rs 1,850).

Nuvama added that Infosys shares have corrected sharply by 21 per cent year-to-date and now trade at 20 times FY27 PE—an attractive valuation in line with historical averages. While the near-term macro environment remains soft, the brokerage remains positive on the medium-to-long term, expecting a revival in enterprise technology spending as conditions improve.

Motilal Oswal Financial Services (MOFSL) noted that despite the upgrade at the lower end of guidance, the retention of the top end signals continued macro uncertainty and a slower-than-expected recovery in discretionary spending. “Our estimates remain unchanged. We value Infosys at 22 times June 2027E EPS, yielding a rounded target price of Rs 1,650, implying a 12 per cent potential upside. We reiterate our ‘NEUTRAL’ rating,” MOFSL said.

Nirmal Bang Institutional Equities said that large deal wins, AI-led transformation opportunities, and disciplined capital allocation have improved long-term visibility. However, macro uncertainty will likely prevent Infosys from raising the upper end of its guidance after the first half of FY26. “We believe large and mega deals will cap margin expansion going forward. Cautious management commentary, lower organic growth guidance, and reduced third-party revenue are expected to weigh on revenue growth,” it said.

Nirmal Bang has cut its FY27 and FY28 revenue and EPS estimates by 3.5 per cent and 5.2 per cent, and by 4.1 per cent and 5.4 per cent, respectively. It also trimmed EBIT margin assumptions by 20–40 basis points for FY26–FY28. The brokerage reiterated its ‘HOLD’ rating with a revised target price of Rs 1,677 (earlier Rs 1,746), valuing the stock at 21.6 times September 2027E EPS—representing its 10-year average mean plus 0.2 standard deviation.