Several leading brokerages have trimmed their target prices on Infosys following its Q4FY25 earnings, which came in below expectations on the revenue front. While the IT major guided for FY26 revenue growth of 0–3% in constant currency terms, analysts flagged concerns about a soft demand environment and third-party revenue declines. However, most firms retained their ‘Buy’ or equivalent ratings, citing stable margins and long-term potential.
HSBC maintained a Buy rating but cut its target to ₹1,700, citing a sharp revenue miss for Q4. It called the FY26 guidance optimistic in the current environment and noted that while margins remain manageable, the rupee’s movement remains a key watchpoint. The brokerage said investor confidence now hinges on Q1 delivery.
JP Morgan retained Overweight, setting a revised target of ₹1,800. While it acknowledged a headline miss on revenues, it pointed out a beat on margins and EPS, supported by fewer pass-through license sales. The firm shaved its FY26 EPS estimate by 2–3% but said the revised guidance is largely de-risked, especially after concerns around U.S. tariffs and Wipro’s soft print.
Citi stayed Neutral, cutting its target to ₹1,525, warning that the higher end of Infosys’ 0–3% revenue growth guidance may be aggressive. It also lowered FY26/27 EPS estimates by 2–3% and reduced the valuation multiple to 22x, down from 23x.
Jefferies maintained a Buy with a cut target of ₹1,660, flagging the 3.5% QoQ revenue decline as a key negative surprise. While it expects only 9% EPS CAGR from FY25–27, Jefferies sees Infosys well-positioned to manage macro uncertainties, especially with its margin guidance of 20–22%.
Bernstein, with an Outperform rating and ₹1,680 target, said the FY26 guidance was weaker than expected, though management’s ability to issue full-year guidance in a volatile macro was seen as a positive. The brokerage remains constructive, noting the stock is already down 25% YTD.
Nomura kept Infosys as its top large-cap IT pick, cutting its target to ₹1,720, and projecting 3–4% EPS revisions for FY26–27. It highlighted margin stability despite macro challenges and believes Project Maximus continues to support long-term profitability.
Nuvama also maintained a Buy, lowering the target to ₹1,700. It attributed the weak Q4 print to a decline in third-party revenue, which accounted for two-thirds of the fall. Yet, it believes the FY26 guidance shows confidence in mitigating macro impacts.
DAM Capital gave a Buy rating with a target of ₹1,550, highlighting a 4.8% YoY revenue decline and a 3.5% QoQ drop, largely due to pass-through and volume impacts. Sector-specific softness was seen in Energy, Life Sciences, and Retail, though deal wins remained strong at USD 2.6 billion.
At the time of reporting, Infosys shares were trading at ₹1,427.70, with revised brokerage targets suggesting varied upside potential depending on earnings execution in FY26.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
