Infosys Limited (NSE:INFY) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Last week, you might have seen that Infosys Limited (NSE:INFY) released its quarterly result to the market. The early response was not positive, with shares down 7.7% to ₹1,815 in the past week. Infosys reported in line with analyst predictions, delivering revenues of US$4.9b and statutory earnings per share of US$0.19, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Infosys

Following the latest results, Infosys' 51 analysts are now forecasting revenues of US$20.6b in 2026. This would be a satisfactory 8.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 4.2% to US$0.83. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$20.5b and earnings per share (EPS) of US$0.83 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of ₹2,112, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Infosys, with the most bullish analyst valuing it at ₹2,350 and the most bearish at ₹1,570 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Infosys' past performance and to peers in the same industry. We would highlight that Infosys' revenue growth is expected to slow, with the forecast 6.3% annualised growth rate until the end of 2026 being well below the historical 9.5% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that Infosys is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Infosys' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Infosys going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Infosys that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.