Infosys shares fall 5%, hit 52-week low after Q4 results; what are analysts saying?

The stock of the IT bellwether declined as much as 5.17% to ₹1,176.40 on the NSE. This was its fresh 52-week low level.

The IT services major on Thursday reported a 20.8% rise in consolidated net profit to ₹8,501 crore in the January-March quarter and guided for 1.5 to 3.5% revenue growth for FY27, pinning its optimism on momentum in financial services, utilities, and AI services.

The top management spoke of the calendar year starting on a strong note but pointed out that there was a "change in economic environment" amid the West Asia conflict, though things appear to be stabilising now.

The company’s revenue from operations increased 13.4% to ₹46,402 crore in Q4 FY26 compared to ₹40,925 crore in the year-ago period.

In the full 2025-26 fiscal year, Infosys' net profit climbed 10.20% to ₹29,440 crore from ₹26,713 crore in 2024-25.

Its revenue from operations in FY26 rose 9.6% to ₹178,650 crore.

For FY27, Infosys has given a revenue growth forecast of 1.5% to 3.5% in constant currency (CC) terms.

What analysts said

Most analysts noted that Infosys’ March quarter performance was either in line or slightly below expectations, with some pressure on revenues and margins. However, the bigger concern remains the FY27 revenue guidance of 1.5–3.5% constant currency growth, which signals a lack of meaningful recovery in demand.

Management commentary around slower decision-making in March and high competitive intensity has further weighed on sentiment.

Citi

Citigroup said Infosys reported a weak Q4, with both revenue and EBIT margins coming in below expectations. While the FY27 guidance of 1.5–3.5% growth is largely in line at the mid-point, Citi highlighted concerns around slower decision-making in March and rising competitive intensity.

Despite trimming FY27 and FY28 EPS estimates by 1–2%, Citi expects Infosys to continue outperforming peers in FY27.

Nomura

Nomura noted that Q4 saw a marginal revenue miss but a modest margin beat, while FY27 guidance remains in line at the midpoint. It expects margins to stay stable at around 21% in FY27.

Nomura highlighted management’s optimism around growth recovery in BFSI and EURS verticals, supported by deal wins and AI partnerships. It expects Infosys to post 3.4% USD revenue growth in FY27.

HSBC

HSBC said Q4 performance was slightly softer than expected, though the FY27 guidance is broadly in line following recent weakness in sector sentiment.

HSBC noted that achieving the upper end of the guidance band could signal a pickup in demand, particularly in the first half of FY27. It also highlighted that the stock is trading near five-year lows despite strong earnings growth over the past few years.

Jefferies

Jefferies said Q4 performance was largely in line, but the weak FY27 growth guidance of 1.5–3.5%, along with a decline in headcount and net-new deal wins, disappointed investors.

While Jefferies raised earnings estimates slightly due to forex benefits, it expects Infosys to deliver around a 7% EPS CAGR, noting that dividend yield offers downside support, but limited growth visibility caps upside.

Morgan Stanley

Morgan Stanley has flagged that Infosys missed Q4 expectations across key metrics, and the FY27 guidance does not indicate any meaningful growth acceleration.

Morgan Stanley noted that the lack of growth visibility could weigh on valuations, though the recent correction in the stock has brought its multiples closer to peers like Wipro, offering some downside protection.