Jefferies has maintained its hold rating on Infosys with a target price of ₹1,290 per share, noting that the company continues to see a steady demand environment despite macro uncertainties.
The brokerage highlighted that Infosys has reiterated its FY26 revenue growth guidance of 3–3.5%, indicating stable demand conditions across its services portfolio.
However, Jefferies cautioned that macro uncertainty and AI-led deflation in technology services pricing could weigh on growth in the near term, reflecting structural changes taking place across the IT services industry.
Despite these concerns, the company remains confident that artificial intelligence will be a net positive over the long term, supporting new opportunities in digital transformation and technology services.
Jefferies also noted that Infosys expects operating margins to remain broadly stable even after ongoing investments in artificial intelligence capabilities. Additionally, the company expects free cash flow conversion to remain above 100% in FY26, reflecting strong cash generation.
Disclaimer: The views and investment tips expressed above are those of the brokerage and do not represent the views of this publication. This article is for informational purposes only and does not constitute investment advice.