Infosys (NYSE:INFY) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Infosys (NYSE:INFY) announced its earnings results on Thursday. The technology company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.03, Zacks reports. The business had revenue of $5.04 billion during the quarter, compared to the consensus estimate of $5.02 billion. Infosys had a return on equity of 30.60% and a net margin of 16.16%.

Here are the key takeaways from Infosys’ conference call:

• Infosys reported strong large-deal momentum, signing $15 billion TCV in FY26 (55% net new) and $3.2 billion in Q4, with management saying the large-deal pipeline remains healthy.
• Management emphasized a clear AI go-to-market—Topaz Fabric, Cobalt and partnerships with Anthropic, OpenAI, Google, Microsoft, NVIDIA, AWS—citing client wins (Ralph Lauren, Hertz, BP) that delivered material revenue uplift and cost/time reductions.
• FY27 guidance implies a slower setup—revenue growth of 1.5%–3.5% CC and operating margins of 20%–22%—with a disclosed 0.75%–1% revenue hit from one large European manufacturing client and a planned reduction in on‑shore mix.
• Financial strength remained solid—FY26 adjusted operating margin ~21%, ROE 31.6%, cash & investments $4.5 billion, >$4 billion returned to shareholders and a proposed total dividend of INR 48 (+11.6%).
• Management flagged rising competitive intensity and AI-driven productivity that is largely being passed back to clients, creating pricing pressure and potential revenue compression even as AI services themselves grow.

Infosys Stock Performance

Shares of INFY stock opened at $12.95 on Friday. The stock’s fifty day moving average is $13.87 and its two-hundred day moving average is $16.23. The firm has a market capitalization of $52.37 billion, a P/E ratio of 16.81, a PEG ratio of 1.72 and a beta of 1.00. Infosys has a fifty-two week low of $12.52 and a fifty-two week high of $30.00.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the company. BMO Capital Markets upped their target price on Infosys from $18.00 to $20.00 and gave the stock a “market perform” rating in a research note on Thursday, January 15th. Susquehanna decreased their price objective on Infosys from $20.00 to $16.00 and set a “neutral” rating on the stock in a report on Tuesday, April 14th. Stifel Nicolaus set a $15.00 price objective on Infosys in a report on Thursday. Jefferies Financial Group lowered Infosys from a “buy” rating to a “hold” rating and set a $14.31 price objective on the stock. in a report on Monday, February 23rd. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Infosys in a report on Monday, December 29th. Six research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Infosys has an average rating of “Reduce” and an average target price of $15.39.

Key Infosys News

Here are the key news stories impacting Infosys this week:

• Positive Sentiment: Q4 beat on top- and bottom-line; EPS and revenue slightly beat consensus, showing underlying margin strength and a 21% YoY profit increase in the quarter — supports fundamentals and cash generation. Infosys Q4 earnings beat
• Positive Sentiment: FY26 revenue crossed $20 billion (3.1% CC growth), adjusted operating margin ~21% and strong free cash flow (~$3.7B); management also reported $14.9B of large deal wins — these items support longer-term cash generation and deal pipeline visibility. Revenue crosses $20 billion mark
• Positive Sentiment: Partnership with OpenAI to integrate tools (including Codex) into Infosys’ Topaz AI platform — a strategic move to expand AI-driven offerings and drive future service demand. OpenAI teams up with Infosys
• Positive Sentiment: Company declared a cash dividend (Rs 25/share) alongside the results, which can be supportive for income-focused holders. Q4 profit spike and dividend
• Neutral Sentiment: Earnings call transcript and analyst metric deep-dives are available for detail on client commentary and margin drivers — useful for investors who want to parse forward commentary and segment trends. Q4 earnings call transcript
• Neutral Sentiment: Analyst note pieces and metric comparisons (revenue/margin/FCF vs estimates) provide context but don’t change the headline mix of beat + cautious guidance. Q4 metrics vs estimates
• Negative Sentiment: Management guided fiscal 2027 revenue growth of 1.5%–3.5%, below many street expectations; commentary cited AI-driven spending caution and macro uncertainty, raising near-term demand worries — the primary reason the stock moved lower. India’s Infosys slips on weak 2027 growth outlook
• Negative Sentiment: Susquehanna and other brokers trimmed price targets after the preview/guidance, adding downward pressure. Susquehanna cuts PT on Infosys
• Negative Sentiment: Coverage noting that Infosys’ sales forecast trails estimates underscores sector-wide demand softness and contributes to investor caution. Infosys sales forecast trails estimates

Institutional Trading of Infosys

A number of hedge funds and other institutional investors have recently modified their holdings of INFY. NewEdge Advisors LLC increased its stake in shares of Infosys by 79.9% in the 1st quarter. NewEdge Advisors LLC now owns 54,978 shares of the technology company’s stock worth $1,003,000 after acquiring an additional 24,426 shares during the last quarter. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Infosys in the 1st quarter worth $239,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Infosys by 6.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 63,155 shares of the technology company’s stock worth $1,153,000 after acquiring an additional 3,804 shares during the last quarter. 16.20% of the stock is owned by institutional investors and hedge funds.

Infosys Company Profile

Infosys Ltd. is a digital services and consulting company, which engages in the provision of end-to-end business solutions. It operates through the following segments: Financial Services, Retail, Communication, Energy, Utilities, Resources, and Services, Manufacturing, Hi-Tech, Life Sciences, and All Other. The company was founded by Dinesh Krishnan Swamy, Senapathy Gopalakrishnan, Narayana Ramarao Nagavara Murthy, Raghavan N. S., Ashok Arora, Nandan M. Nilekani, and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.