Nomura has reiterated its buy rating on Infosys, maintaining the IT major as its sector top pick and significantly raising the target price to ₹1,880 per share. The brokerage’s optimism follows Infosys’s robust performance for the first quarter of FY26, where the company delivered results that surpassed market expectations on both profit and revenue fronts. For Q1FY26, Infosys reported an 8.7% year-on-year increase in net profit, reaching ₹6,921 crore, and a 7.5% growth in revenue to ₹42,279 crore—a clear signal of its ability to negotiate a challenging macro environment and sustain its growth momentum. Margin performance was also commendable, with EBIT margins at 20.8%, close to the upper bound of the annual guidance and beating many estimates
Nomura’s report highlights that, while the quarter beat street consensus, Infosys has made a minor adjustment at the top end of its organic revenue growth outlook for FY26. The company narrowed its revenue guidance range to 1–3% in constant currency from an earlier 0–3%, effectively trimming the maximum expectation by about 40 basis points as the company factors in macroeconomic challenges and a conservative industry outlook. At the same time, Infosys continues to signal steady execution and margin discipline, thanks in part to Project Maximus, its operational excellence initiative aimed at sustaining and expanding profitability. Nomura notes that the impact of this program is clearly playing out, with management confident in maintaining margins within the anticipated 20–22% band for the year.
Despite a modest 1% cut in estimated earnings per share for FY26–28, Nomura’s rating reflects faith in Infosys’s strategic direction, deal momentum, and cash-flow resilience. The company’s large-deal wins remained exceptional, with the Q1 total contract value surging to $3.8 billion, outpacing most peers and positioning Infosys strongly for future quarters. In its commentary, Infosys management emphasized confidence in continued enterprise AI adoption and digital transformation spending by global clients, deepening the company’s competitive moat in the high-value, high-growth space of next-generation IT services
