Infosys Share Price Surge: IT Giant Rises 5% Following Guidance Increase; Key Factors for Investors to Monitor
Shares of Infosys experienced a significant surge on Friday, climbing over 5% on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). This rise followed the company’s announcement of an increase in its fiscal year 2026 constant-currency revenue growth guidance to 3–3.5%, while maintaining its operating margin outlook at 20–22%. At 11 am, Infosys shares were trading at 1,679.65 on the BSE and 1,680.60 on the NSE, reflecting a notable uptick in investor confidence.
Strong Q3 Performance Amid Mixed Results
Infosys reported a consolidated net profit of Rs 6,654 crore for the third quarter, marking a 2% decline compared to Rs 6,806 crore from the previous year. Despite this drop in profit, the company saw a 9% increase in revenue from operations, which reached Rs 45,479 crore. The mixed results have led to varied reactions from analysts and investors. While the profit figures fell short of expectations, the revenue growth indicates a positive trend in operations. The company’s American Depository Receipts (ADRs) also reflected this optimism, climbing to an intraday peak of $19.45 before closing at $19.35, a 10.4% increase from the previous day.
Analysts React to Guidance Upgrade
Following the announcement of the revised revenue growth guidance, brokerages have largely maintained a positive outlook on Infosys. Nomura has reiterated its Buy rating with a target price of Rs 1,810, highlighting the company’s decision to raise its FY26 constant-currency revenue growth forecast from 2–3% to 3–3.5%. Elara Capital has also retained its ‘Accumulate’ rating, increasing its target price to Rs 1,770. The brokerage noted that the Q3 revenue exceeded expectations, bolstered by a significant deal with the NHS, and indicated that the company’s strong performance in the first nine months of FY26 contributed to the revised guidance.
Future Growth Prospects and Market Sentiment
Emkay Global has maintained its Buy rating with a target price of Rs 1,750, describing the third-quarter performance as mixed. While the revenue showed a 0.6% sequential growth in constant-currency terms, the adjusted EBIT margin saw a slight decline of 20 basis points quarter-on-quarter to 20.8%. Emkay cautioned that the revised guidance does not account for potential revenue from the pending Telstra joint venture, reflecting a cautious approach amid macroeconomic uncertainties. The brokerage has adjusted earnings estimates for FY26–28, indicating a range of -2.1% to +0.5% to align with the Q3 outcomes.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
