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Infosys's analyst price target has been increased from $18 to $19. This change reflects analysts' confidence after stronger-than-expected Q1 results and raised guidance, despite anticipated declines in third party revenue.

Analyst Commentary

Bullish and bearish viewpoints have emerged as analysts revisit their outlook for Infosys, especially following the company’s recent earnings announcement and updated targets.

Bullish Takeaways

• Bullish analysts remain encouraged by Infosys's ability to raise the lower end of its full-year guidance. This indicates increased confidence in sustained performance despite industry headwinds.
• The revised $19 price target reflects optimism around the company’s operational execution and potential for margin expansion, even as certain segments face pressure.
• Analysts note that robust Q1 results demonstrate resilient demand from key clients. This underlines Infosys’s ongoing relevance in digital transformation initiatives.
• Improved modeling and forecasts are supported by Infosys’s demonstrated capacity to navigate market challenges and deliver on committed guidance.

Bearish Takeaways

• Bearish analysts express caution over expected declines in third party revenue, which could temper overall growth acceleration in the near term.
• Concerns linger around potential macroeconomic and client-specific uncertainties. These factors may limit upside beyond the revised guidance.
• Valuation remains a consideration for some observers who maintain a more neutral stance. The stock’s move relative to its fundamental improvements could constrain further appreciation.
• There is continued scrutiny of execution risks and the effectiveness of cost discipline measures against an evolving industry backdrop.

What's in the News

• President Trump is expected to require a $100,000 payment for H-1B visa applications, which could impact Infosys's ability to send skilled workers to the U.S. (Bloomberg)
• Infosys announced a £1.2 billion, 15-year contract with the NHS Business Services Authority to deliver a next generation workforce management solution for 1.9 million NHS employees.
• The Board of Directors authorized a buyback program for up to 100 million shares, valued at INR 180 billion, to enhance shareholder value.
• Infosys declared an interim dividend of INR 23 per share, with payout scheduled for November 7, 2025.
• Infosys revised its fiscal 2026 revenue guidance, now expecting 2% to 3% constant currency growth with operating margins held at 20% to 22%.

Valuation Changes

• Fair Value Estimate has decreased modestly from ₹1,720.41 to ₹1,705.95, reflecting a slight adjustment in the underlying assumptions.
• Discount Rate has risen slightly, from 15.99% to 16.03%. This may indicate increased perceptions of risk or cost of capital.
• Revenue Growth Expectation has increased from 5.14% to 5.74%. This suggests a more optimistic outlook on Infosys’s ability to grow sales.
• Net Profit Margin projection has edged down from 16.81% to 16.56%, signaling a small anticipated reduction in profitability.
• Future P/E Ratio has declined marginally from 32.97x to 32.70x. This represents a slightly lower valuation for future earnings.