Infosys is no doubt the stock of the moment after the strong set of numbers it delivered in Q3. In response to that, the Infosys ADR also jumped 10% overnight. Leading brokerage firm Nuvama Institutional Equities raised the target price to Rs 1,900 from Rs 1,800, a day after the company reported its quarterly results for the third quarter of FY26.
Nuvama maintained its ‘Buy’ rating on the stock. The new price target implies an upside of 19% from the current market price. “Infosys delivered two consecutive quarters of solid deal wins and growth, which provides high growth visibility for the coming quarters. In FY27, growth will depend on how Q4 turns out – hopefully leaving the company with a better exit-rate than the last two years,” said the brokerage.
Nuvama on Infosys: Healthcare and BFS-led growth
Infosys revenue grew 0.6% constant currency terms sequentially, despite seasonal weakness and a 30 basis points QoQ decline in third-party revenue. The company’s growth was led by healthcare (+13% QoQ, driven by NHS deal), BFS (+2.3% QoQ, recent deal wins and uptick in discretionary spending), while Manufacturing and Retail/CPG remain under pressure (tariff uncertainty).
Infosys’ management highlighted AI and cost optimisation-led demand across E&U and Communications, and expects growth acceleration in BFSI and Energy in FY27.
Adjusted EBIT margin expanded 20 bps QoQ to 21.2%, driven by 40 bps foreign exchange tailwind and 40 bps (project Maximus), partly offset by furloughs (-70 bps). The exceptional cost of Rs 1,290 crore, related to changes in labour laws, was booked in the quarter.
Infosys Q3 FY26 results
The major highlight of the earnings was the FY26 revenue growth guidance. The company increased growth guidance despite seeing a fall in its consolidated net profit by over 2% year-on-year in Q3 FY26. The drop in the net profit came because of one-time labour code-related charges. The company shelled out Rs 1,289 crore on account of labour codes.
Infosys’s net profit in Q3 FY26 declined 2.2% YoY to Rs 6,654 crore. Its revenue for the quarter rose 8.9% YoY to Rs 45,479 crore.
Infosys share performance
The share price of Infosys has fallen 0.4% in
the past five trading sessions. The stock has remained little changed over the last one month and has risen 1.5% in the past six months. Infosys stock price has erased 17.5% of investors’ wealth over the previous 12 months.