Nomura has retained its ‘Buy’ rating on Infosys with a target price of ₹1,720, citing balanced FY26 revenue guidance, consistent margin delivery, and progress in GenAI implementation as key strengths. The brokerage also called Infosys its top sector pick, trading attractively at ~21x FY27 EPS.
Nomura noted that Project Maximus continues to deliver margin expansion, and GenAI projects are maturing well without causing any revenue headwinds. Infosys remains focused on disciplined capital deployment, especially on M&A, while sustaining robust cash flow generation.
The company’s revenue outlook for FY26 incorporates a range of macroeconomic outcomes, including global tech budget normalization and recovery in discretionary spending. Nomura believes this flexibility strengthens Infosys’ risk-adjusted appeal in the IT sector.
Disclaimer: This article is based on the brokerage report by Nomura. It does not constitute investment advice.
