Shares of Infosys are in focus after the company posted a better-than-expected Q1FY26 performance, prompting bullish commentary from most brokerages. While Nomura, CLSA, and Bernstein maintained their Buy/Outperform calls, Morgan Stanley retained its Overweight view, citing strong margin and growth potential within the large-cap IT pack.
Nomura: Reiterates top pick despite EPS cut
Nomura retained its Buy rating with a target price of ₹1,880. The firm called Q1 a beat and acknowledged that while Infosys trimmed the top end of its FY26 organic growth guidance by ~40 bps, margin improvement under Project Maximus continues to play out. Nomura made a modest 1% cut in FY26–28 EPS estimates but continues to view Infosys as its top pick in the IT space.
Morgan Stanley: Strongest EBIT growth among peers
Morgan Stanley maintained an Overweight call with a target of ₹1,700. The brokerage said Infosys’ Q1 was more balanced compared to peers and expects revenue growth to trend toward the upper end of the revised FY26 guidance. It also sees Infosys delivering the strongest EBIT growth among large-cap IT companies this fiscal year.
CLSA: Q1 ticked all boxes
CLSA kept an Outperform rating and raised its target price to ₹1,861. It noted that revenue growth beat estimates, and EBIT margin at 20.8% was ahead of the 20.3% expectation. The revised FY26 revenue guidance of 1–3% was in line with Street expectations.
Bernstein: Solid quarter, leadership in Gen AI
Bernstein also maintained an Outperform call with a target price of ₹1,820. It noted that Infosys delivered a solid quarter, beating both revenue and order book estimates. With large deal TCV at $3.8 billion, Bernstein sees Infosys as the growth leader and best positioned in Gen AI among larger peers. It also noted that valuations at ~20x FY27 earnings remain attractive.
Disclaimer: The brokerage views expressed above are solely those of the respective firms. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
