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Infosys Beats Expectations, Shares Soar Ahead of Q2 FY26 Results
17 Oct
Summary
- Infosys reports 13.2% YoY rise in Q2 FY26 net profit
- Revenue grows 8.6% YoY, with 2.9% constant currency growth
- Analysts issue 'buy' ratings, target prices of Rs 1,700-1,730
Infosys, the leading Indian IT services company, is set to be in the spotlight on Friday as brokerages present bullish views on the stock following the firm's better-than-expected Q2 FY26 results. According to the latest reports, most analysts, including Nomura, Jefferies, and HSBC, have issued 'buy' ratings on Infosys shares, with target prices ranging from Rs 1,700 to Rs 1,730 per share.
The analysts' optimism stems from Infosys' steady execution, resilient margins, and an improving deal pipeline. The IT major reported a 13.2% year-on-year rise in its July-September consolidated net profit to Rs 7,364 crore, beating analyst estimates. Its revenue grew 8.6% on-year to Rs 44,490 crore, with constant currency growth standing at 2.9% year-on-year and 2.2% sequentially.
Despite the strong performance, Infosys' operating margin came in at 21%, broadly stable from a year ago but marginally below expectations. The company also declared an interim dividend of Rs 23 per share, up 9.5% from last year.
Looking ahead, Infosys has narrowed its FY26 revenue growth guidance to 2-3% in constant currency, from 1-3% earlier, while maintaining its operating margin band at 20-22%. The company also reported large deal wins totaling $3.1 billion in the quarter, up 29% year-on-year, and a 38% rise in free cash flow to Rs 9,677 crore, amounting to 131% of net profit. Additionally, Infosys completed a Rs 18,000-crore share buyback during the quarter.
