Infosys share price is down nearly 1% on soft FY26 guidance and continuing uncertainty on the tariff from US. The technology major delivered strong Q1 performance but the management remains cautious on the back of global headwinds. The big question is can you buy the stock at current levels? Brokerages highlight 3 key concerns.
Here is how key brokerages break down the IT bellwether’s Q1 report card-
Motilal Oswal on Nomura: Reiterate Neutral
Motilal Oswal has reiterated Neutral rating on the Infosys share price with a target of Rs 1,750 implying 11% upside from current levels. They believe the company’s “organic growth outlook is slightly better despite optics of a cut. While the organic revenue guidance was cut at the upper end by 40 bps, the actual performance trajectory has improved.”
According to Motilal Oswal, Infosys could potentially deliver 2.5% organic growth now, on the back of a stronger H1. They expect a “decline in third party (pass-through) revenues,” in FY26 which is a “growth headwind but encouragingly points to newer deal wins with lower third-party content, implying better margins.”
Macro commentary is still subdued, they added. Despite the strong Q1, Infosys “continues to see a wait-and-watch posture among clients, with no material improvement in discretionary budgets or decision cycles. Tariff uncertainties and geopolitical tensions continue to weigh on sentiment,” Motilal Oswal pointed out.
The brokerage also highlighted that the “ AI productivity gains may create headwinds.”
Nomura on Infosys: Cut EPS estimates by 1%
Nomura has reiterated Infosys as its top pick in large cap India IT service space and retains Buy on the stock. However, it has reduced the target price slightly to Rs 1,880 per share from Rs 1,900 earlier. They have also cut the FY26-FY28 EPS estimates by 1%.
The brokerage house expects Infosys to post 3.8% YoY revenue growth in FY26 (in dollar terms). This estimate includes the 40 bps push from the recent acquisitions.
Infosys changed its revenue growth guidance for FY26 to 1-3% YoY from 0-3% YoY (organic) (including inorganic, which we estimate at ~40bp), and continues to assume lower third-party contribution.
The report highlighted the Infosys management commentary that “it now expects a stable macro. It also said ongoing tariff induced macro uncertainty in a seasonally strong part (H1FY26) and usual weak seasonality in H2 for Infosys, are key reasons for the guidance change.”
The Infosys pipeline remains strong on opportunities around cost-takeout and vendor consolidation programs.