Infosys Share Price Falls Despite Q2 Beat — Brokerages Maintain ‘Buy’ Ratings with Up to 17% Upside
Infosys stock dips 1.5% despite strong Q2 FY26 results; brokerages like Nomura, Jefferies, and HSBC maintain ‘Buy’ with targets up to ₹1,730 per share and 17% upside potential.
Infosys Q2 FY26 results beat Street estimates; stock falls slightly as brokerages retain bullish ‘Buy’ ratings.
In the opening session on Friday, the shares of Infosys went down by as much as 1.5%. This happened despite the fact that the IT mammoth released Q2 FY26 results that were better than the market's expectations. The stock price dropped to a low of ₹1,447.3 on the National Stock Exchange (NSE), thus continuing the decline it experienced the day before.
Nevertheless, the decline has not intimidated global brokers like Nomura, Jefferies, and HSBC, who among others, have maintained their ‘Buy’ ratings on Infosys with target prices of ₹1,700 to ₹1,730 per share, which represents a potential upside of 17% considering the price at which the stock closed on Thursday.
Key Points from Infosys Q2 FY26 Results
In terms of net profit, Infosys for the FY26 Q2 period reported a consolidated profit of ₹7,364 crores, which was a growth of 13.2% from the previous year and was in line with the market’s expectations. For the quarter, the company’s revenue went up profitably via 8.6% YoY to ₹44,490 crore, with constant currency growth of 2.9% YoY and 2.2% quarter-on-quarter. Operating margins remained unchanged at 21%, and the company has declared an interim dividend of ₹23 per share which is 9.5% higher than the last year.
The dollar value of the new contracts signed rose by 29% to $3.1 billion and the amount of cash left over after operating and capital expenditures increased by 38% to ₹9,677 crore which represents 131% of the net profits. Infosys also utilized the entire ₹18,000-crore share buyback limit during the quarter.
FY26 Guidance and Analyst Views
- Infosys revised its FY26 revenue growth guidance to 2–3% in constant currency, while maintaining its operating margin band of 20–22%. The company remains optimistic about demand recovery and its large deal pipeline.
- Nomura maintained a ‘Buy’ with a ₹1,720 target, expecting margins to stay near 21% and describing the Q2 numbers as “slightly better than expected.”
- Jefferies also issued a ‘Buy’ with a ₹1,700 target, noting the performance was in line but cautioning about a “soft” second half of FY26.
- HSBC, with a ₹1,730 target, cited cost rationalisation, AI-driven efficiency, and rupee weakness as key positives supporting margin stability and long-term growth.
- Despite a 25% decline in Infosys stock over the past year—compared to the Nifty 50’s 3.4% gain—analysts remain bullish, pointing to improved deal pipeline, resilient margins, and AI-led productivity as drivers for a potential rebound.
