Infosys Q2 Results: Should You Buy, Sell or Hold Shares After Guidance Cut?

Shares of Infosys are in focus after the Indian IT services major lowered its FY27 revenue growth guidance following its September-quarter results. The revision has prompted mixed reactions from brokerage firms, with some retaining Buy ratings while others remain Neutral or Hold on the stock.

UBS has maintained a Buy rating on Infosys with a price target of ₹1,415 per share, while Nomura has retained its Buy recommendation with a target of ₹1,300. In contrast, Citi has maintained a Neutral rating with a ₹1,105 target, while Goldman Sachs has retained its Neutral stance with a target of ₹1,000.

The differing assessments reflect a balance between strong deal wins and concerns about revenue growth, competitive pricing and the impact of artificial intelligence on traditional IT services.

Infosys Cuts FY27 Revenue Growth Guidance

Infosys has revised its FY27 constant-currency revenue growth guidance to 1%–2%, compared with its earlier forecast of 1.5%–3%. The company retained its operating margin guidance at 20%–22%.

The revision follows a challenging operating environment, including cautious client spending, pricing pressure and softer demand in certain industry segments. Clients are also seeking greater productivity gains from AI, creating pressure on traditional technology services pricing.

For the quarter ended September 30, 2026, Infosys reported revenue of ₹49,244 crore, up 10.7% year on year. Net profit attributable to shareholders rose 6.2% to ₹7,823 crore, while the operating margin stood at 21%.

Despite the increase in reported revenue and profit, the company's revised growth outlook has raised questions about its near-term business momentum.

UBS Maintains Buy Rating With ₹1,415 Target

UBS has retained its Buy rating on Infosys, setting a price target of ₹1,415 per share. The brokerage acknowledged that the quarterly performance was weaker than expected and that revenue growth in constant-currency terms fell short of its estimates.

However, its positive stance suggests that it sees potential in the company's valuation and longer-term business opportunities. Investors will also be watching whether strong deal wins translate into actual revenue growth over the coming quarters.

The target price is an analyst estimate, not a guaranteed future trading price.

Nomura Retains Buy Rating at ₹1,300

Nomura has maintained its Buy rating on Infosys with a price target of ₹1,300 per share. The brokerage noted that the reduction in revenue guidance was somewhat larger than anticipated but viewed the stock's valuation as attractive.

Strong deal momentum could support future growth if the company successfully converts its new contracts into revenue. However, the timing of project ramp-ups and continued pricing pressure remain important factors to monitor.

Citi Maintains Neutral Rating at ₹1,105

Citi has maintained a Neutral rating on Infosys with a target price of ₹1,105 per share.

The brokerage sees a challenging growth environment but has also considered the potential support from major new deal wins. The outlook remains dependent on client spending, competitive intensity and the company's ability to protect pricing while delivering productivity improvements.

A Neutral rating indicates that Citi is taking a more measured view of the stock's prospects rather than making an outright bullish call.

Goldman Sachs Keeps Neutral Rating at ₹1,000

Goldman Sachs has retained its Neutral rating on Infosys with a price target of ₹1,000 per share.

The brokerage has highlighted concerns about revenue visibility following another reduction in the company's annual guidance. Sluggish demand, client project reductions and competition over AI-driven productivity gains could continue to weigh on growth.

Large deal wins may help offset some revenue headwinds, but their eventual contribution will depend on execution and the pace at which projects begin generating revenue.

HSBC has separately retained a Hold rating with a reported target price of ₹1,110, citing concerns about growth and potential margin pressure.

These recommendations reflect the individual assumptions and valuation methods used by each brokerage. Investors should check the publication date of each research note before comparing targets.

What Should Investors Watch Next?

The next phase of Infosys' performance will depend on whether client demand improves, major deals translate into revenue and the company manages pricing pressure from AI-led productivity gains.

Investors may also monitor operating margins, discretionary technology spending and demand trends in North America, a key market for the company. Although large contract wins provide some support, they do not automatically guarantee stronger near-term revenue growth.

The reduction in FY27 guidance has added uncertainty to the growth outlook, while the retained margin guidance provides a degree of stability. The balance between these factors is likely to remain central to brokerage assessments.