Infosys stock falls today even after Q2 results beat Street, brokerages say ‘buy’; check share price targets, upside

Infosys share price fell as much as 1.5 percent on Friday, even with brokerages presenting bullish views on the stock following the firm’s better-than-expected Q2 FY26 results. Infosys shares were down to a low of 1,447.3 on NSE in the opening trade, extending yesterday's moderate loss.

Most analysts, including Nomura, Jefferies, and HSBC, issued ‘buy’ ratings with target prices in the range of Rs 1,700-1,730 per share, citing steady execution, resilient margins, and an improving deal pipeline. The stock has declined 25 percent over the past year, underperforming the Nifty 50 index’s 3.4 percent gain. The brokerage target prices signal up to 17 percent upside on Infosys stock from yesterday’s closing price.The IT major reported a 13.2 percent year-on-year rise in July-September consolidated net profit to Rs 7,364 crore, beating analyst estimates. Its revenue grew 8.6 percent on-year to Rs 44,490 crore. In constant currency terms, growth stood at 2.9 percent year-on-year and 2.2 percent sequentially. Operating margin came in at 21 percent, broadly stable from a year ago, though marginally below expectations. The company also declared an interim dividend of Rs 23 per share, up 9.5 percent from last year.

• Also read | Infosys hires 12,000 freshers in first half, on track to hire 20,000 for FY26

Infosys narrowed its FY26 revenue growth guidance to 2-3 percent in constant currency, from 1-3 percent earlier, while maintaining its operating margin band at 20-22 percent. Large deal wins totalled $3.1 billion in the quarter, up 29 percent year-on-year, and free cash flow rose 38 percent to Rs 9,677 crore, amounting to 131 percent of net profit. The company also completed a Rs 18,000-crore share buyback during the quarter.

• Nomura issued a ‘buy’ rating on Infosys stock with a target price of Rs 1,720 per share, noting that Q2 revenue marginally beat expectations. It said that margins are expected to remain stable around 21 percent in FY26. Infosys stock trades at 19.8x FY27 EPS.
• Jefferies also has a ‘buy’ call with a Rs 1,700 target, describing the performance as in line. However, it said that the company’s raised lower-end guidance indicates a “soft” second half despite a healthy deal pipeline. The brokerage expects a 6 percent CAGR in EPS over FY26-28, supported by margin resilience and ongoing efficiency gains.
• HSBC issued a ‘buy’ rating with a Rs 1,730 target, highlighting stable margins supported by cost rationalisation, rupee weakness, and AI-led productivity gains. It also said improved macro visibility in the US could lift enterprise technology spending in 2026, favouring Infosys among large-cap peers.

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