Jefferies reaffirmed its ‘Buy’ call on Infosys and predicted upside potential of as much as 38%. The brokerage firms expect the recent sell-off in IT stocks to be overdone as Gen AI begins to drive significant revenue. JM Financial believes Infosys is now positioned as a strategic partner for top global clients through its AI initiatives.
Jefferies on Infosys
Infosys highlighted that IT services will remain key to enterprise AI implementation. Infosys has developed its AI platform, Infosys Topaz Fabric, and is collaborating with AI ecosystem partners to bring it to market.
The company has implemented a dual-focused talent strategy to not only seize new service opportunities, projected to be worth $300-$400 billion by 2030, but also to enhance its current service offerings.
Jefferies on Infosys: Client actively adopting AI services
Client AI adoption is increasing with new AI services contributing 5.5% of revenues in Q3 FY26. Infosys’ management said that client AI adoption is increasing, with 90% of Infosys’s top 200 large clients currently using its AI services. Infosys has established itself as a strategic AI partner for 15 of its Top 25 clients in both Financial Services and Energy, Utilities & Resources (EURS), said the report.
Jefferies maintained its ‘Buy’ rating on the stock, with an unchanged target price of Rs 1,880, which looks at an upside of over 38%.
Infosys aims “not only to capture new demand from AI-first services but also to augment its existing service lines to increase wallet share,” Jefferies pointed out. The company pointed out that it has 3 key ingredients for executing this plan.
“First, Infosys has built its AI platform, Infosys Topaz Fabric, to help clients scale AI initiatives faster. Second, expand its partnerships across the tech stack and follow a joint go-to-market approach with partners. Third, overhauling its talent strategy to not only re-skill existing talent but also hire specialists with an enhanced focus on domain expertise,” Jefferies highlighted.
They added that Infosys is also redesigning its talent operating model and career architecture to embed an AI‑first mindset and support new role definitions as AI becomes core to enterprise IT delivery.
JM Financial on Infosys
JM Financial also has a Buy rating on Infosys with a target of Rs 1,660 per share. This implies upside potential of nearly 19% from current levels. According to the domestic brokerage house, “AI will prove deflationary. In addition, we continue to worry about increased competition given the tough environment and insourcing – GCCs doing better than IT services.”
That said, the brokerage house remains apprehensive about terminal growth as overly pessimistic.
Infosys is JM Financial’s top pick in large tiers, given healthy large deal TCV in 9MFY26, with decent net-new providing some near-term comfort. In addition, they expect the “financial services and Europe will see growth acceleration in FY27 versus FY26.”
They believe that Infosys’ strategy combines reinvention of existing services (AI First Services) with capture of net-new demand (AI Augmented Services), “supported by broad model partnerships and large-scale reskilling (90% developers AI-trained).”
The management emphasised that “sustainable value will accrue to players that understand enterprise context, deliver business outcomes and assume accountability.”
Infosys share performance
The share price of Infosys has fallen 2.7% in the last five trading days. The stock has declined 18.6% in the past one month and 4.7% in the last six months. Infosys’ stock price has erased investors’ wealth by more than 26% over the previous one year.