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Infosys has seen its modeled fair value trimmed from ₹1,770.53 to ₹1,724.32, a reduction of about 2.6% in the price target embedded in the latest assumptions. This shift lines up with more cautious Street commentary, where some analysts are tempering expectations around AI related business mix changes, while others still see room for a more balanced risk or reward setup over the medium term. As you read on, you will see how these differing views shape the evolving Infosys narrative and what to watch next.
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Several firms, including Susquehanna, TD Cowen, BMO Capital, Stifel, and BofA, lifted their Infosys price targets in mid January 2026, signaling interest in the equity story even as assumptions are being fine tuned.
TD Cowen took its target to US$17 from US$16 and kept a Hold rating, saying it is “constructive” on the services sector setup for 2026, with expectations of gradual improvement in enterprise IT spend and what it views as discounted average valuations.
Jefferies moved Infosys to Hold from Buy and cut its target to US$14.31 from US$20.82, highlighting a view that AI could shift the business mix toward consulting and implementation while shrinking managed services, which it sees as adding cyclicality and operating model risk.
Stifel reduced its target to US$17 from US$19 and kept a Hold rating after Infosys’s India investor day, underscoring a more cautious stance on execution against the current outlook.
Jefferies also pointed to further downside risk across India computer services and IT consulting, which feeds into a more conservative stance on sector level valuation and growth prospects.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives!
NSEI:INFY 1-Year Stock Price Chart
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Infosys issued fiscal 2026 guidance, with revenue growth expected in the 3.0% to 3.5% constant currency range and an operating margin range of 20% to 22%.
Infosys and Intel outlined the next phase of their collaboration, combining Infosys Topaz Fabric with Intel Xeon processors, Intel Gaudi AI accelerators and Intel AI PCs to help enterprises scale AI deployments.
Infosys announced a collaboration with Anthropic to integrate Claude models, including Claude Code, into Infosys Topaz to build enterprise AI agents across sectors such as telecommunications, financial services, manufacturing and software development.
Infosys expanded its work with Cognition and the MSG Family of Companies, deploying Devin for engineering use cases and using Infosys Topaz to support digital fan experiences at the newly renamed Infosys Theater at Madison Square Garden.
Fair value trimmed from ₹1,770.53 to ₹1,724.32, a reduction of about 2.6% in the modeled estimate.
Assumed long term annual revenue growth softened from 5.66% to 5.18%.
Net profit margin assumption effectively unchanged at 16.13% in the updated model.
Future P/E multiple edged down from 29.91x to 29.48x on expected earnings.
Discount rate raised slightly from 15.50% to 15.88%, making modeled future cash flows less valuable.
Narratives link a company’s real world story to a financial forecast and fair value that update as new data and news come through. They help you see how deals, guidance, and risks all feed into the long term picture.
Head over to the Simply Wall St Community and follow the Narrative on Infosys to stay up to date on:
How Infosys is positioning around AI, cloud, and digital services to win larger, higher margin and more recurring deals, including IP led platforms like Finacle.
What analyst assumptions say about future revenue and earnings, including the role of automation and client consolidation in supporting deal flow and margins.
The key risks from AI driven productivity, pricing pressure, macro uncertainty in North America and Europe, and intense competition across large enterprise clients.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include INFY.nsei.
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