The Infosys share price is in the spotlight today after the IT major announced its Q2FY26 earnings post market hours on October 16.
The company reported a 2.2% quarter-on-quarter revenue growth in constant currency (CC) terms. Following the results, several brokerage houses shared their views on the stock. While some remain upbeat on long-term prospects, others prefer to stay cautious amid a still. Let’s take a look at what brokerages are saying
Nomura on Infosys: ‘Buy’ with 16.8% upside potential
The brokerage maintained its ‘Buy’ rating on Infosys with a target price of Rs 1,720, implying a 16.8% upside potential. “We expect EBIT margins to remain stable at 21% (flat y-y) in FY26F vs the guided band of 20–22%,” Nomura said.
According to the brokerage report by Nomura, Infosys second-quarter performance was slightly ahead of estimates. The company reported revenue of US dollar 5,076 million, a 2.6% QoQ and 2.0% YoY growth in CC terms. The brokerage noted that this was higher than its expectation of 1.4% QoQ growth.
“Revenue growth was led by the Retail vertical (+6.6% y-y) while Financial Services grew +5.4% y-y, both in CC terms,” Nomura said in its note. The firm added that EBIT margin at 21% was up 20 basis points QoQ, in line with expectations.
Nomura also highlighted that net new deal wins stood at USD 3.1 billion, down 18% QoQ but up 29% YoY. “Tailwinds were 30bp from Project Maximus emanating from increase in realisation due to higher value-based selling and 60bp from currency fluctuations,” the brokerage added.
Nuvama on Infosys: Positive on long-term prospects
Brokerage firm Nuvama also retained a ‘Buy’ rating on Infosys, though it trimmed its target price to Rs 1,800 from Rs 1,850 earlier. According to the brokerage report, Infosys posted “decent Q2FY26 results,” with revenue growth of 2.2% CC QoQ and EBIT margin of 21%, both in line with expectations.
The management has now narrowed its FY26 revenue growth guidance to 2–3%, compared with 1–3% earlier, while total contract value (TCV) came in at US dollar 3.1 billion, down 19.3% sequentially but up 26% on-year.
“Infosys reported decent growth this quarter on a high base of Q1 and free of any third-party boost,” Nuvama said, adding that deal wins remained solid despite macro uncertainties.
Nuvama also pointed out that the stock has corrected sharply, saying, “Infosys has corrected sharply (-21% CYTD) and is currently trading at 20x FY27 PE-highly attractive valuations – at its historical average (20x).”
Motilal Oswal on Infosys: Neutral stance amid macro headwinds
Meanwhile, Motilal Oswal Financial Services maintained a ‘Neutral’ rating on Infosys, assigning a target price of Rs 1,650. This implies a potential upside of about 12% from current levels.
According to the brokerage report, Infosys reported Q2FY26 revenue of US dollar 5 billion, up 2.2% QoQ and 2.9% YoY in CC terms, slightly below its internal estimate of 2.4% QoQ. Management also revised the lower end of its FY26 guidance to 2% from 1% earlier, keeping the overall range at 2–3%.
“Despite an upgrade to the lower end of the guidance, the top end was retained -pointing to continued macro uncertainty and a slower-than-expected pickup in discretionary spending,” the report noted. Large deal TCV stood at US dollar 3.1 billion, down 18.4% QoQ.
Motilal Oswal said, “We expect Infosys revenue/EBIT/Profit-after-tax to grow 8%/8%/6% YoY in H2FY26. We reiterate our ‘Neutral’ rating on Infosys with a target price of Rs 1,650, implying a 12% potential upside.” The brokerage added that ongoing global macro uncertainties continue to weigh on large transformation deals.