Infosys (NYSE:INFY) Hits New 12-Month Low on Analyst Downgrade

Key Points

• Infosys shares hit a new 52‑week low after BMO cut its price target to $15 (market perform); several other firms trimmed targets and the MarketBeat consensus rating is "Reduce" with a $14.22 consensus price target.
• Operationally Infosys reported FY26 revenue above $20 billion with ~3.1% constant‑currency growth, ~21% adjusted operating margin and ~$3.7B free cash flow, but management's fiscal‑2027 revenue guidance of 1.5–3.5% fell short of expectations and spurred the market sell‑off despite an OpenAI partnership to expand its AI offerings.

Shares of Infosys Ltd. (NYSE:INFY - Get Free Report) hit a new 52-week low during trading on Friday after BMO Capital Markets lowered their price target on the stock from $20.00 to $15.00. BMO Capital Markets currently has a market perform rating on the stock. Infosys traded as low as $12.46 and last traded at $12.5350, with a volume of 3126084 shares traded. The stock had previously closed at $12.94.

Several other analysts also recently commented on INFY. Stifel Nicolaus set a $15.00 price objective on shares of Infosys in a research report on Thursday. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Infosys in a research report on Monday, December 29th. Susquehanna reduced their price objective on shares of Infosys from $16.00 to $14.00 and set a "neutral" rating for the company in a research report on Friday. Jefferies Financial Group downgraded shares of Infosys from a "buy" rating to a "hold" rating and set a $14.31 price objective for the company. in a research report on Monday, February 23rd. Finally, TD Cowen reduced their price objective on shares of Infosys from $16.00 to $15.00 and set a "hold" rating for the company in a research report on Monday, April 6th. Six research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus price target of $14.22.

More Infosys News

Here are the key news stories impacting Infosys this week:

• Positive Sentiment: Infosys secured a partnership with OpenAI to embed OpenAI tools (including Codex) into its Topaz AI platform, which strengthens its AI services roadmap and could support long‑term deal flow and higher‑value work. OpenAI teams up with Infosys to bring AI tools to more businesses
• Positive Sentiment: FY26 revenue surpassed $20 billion with 3.1% constant‑currency growth, adjusted operating margin ~21%, free cash flow of ~$3.7B and large deal wins of $14.9B — fundamentals that support cash generation and dividend capacity. Revenue crosses $20 billion mark with resilient growth of 3.1% in FY 26 in constant currency
• Neutral Sentiment: Quarterly results: INFY posted EPS $0.23 (beat) and revenue $5.04B (slight beat); margins and ROE remain strong — positive execution in the quarter but guidance is driving the market reaction. Infosys quarterly results and press release
• Neutral Sentiment: The Q4 earnings call transcript provides management commentary and client‑level color that investors will parse for signs of deal pacing and margins recovery. Infosys Q4 2026 Earnings Call Transcript
• Negative Sentiment: Management guided fiscal 2027 revenue growth of just 1.5%–3.5%, below many analysts’ expectations, stoking concerns about demand recovery and prompting a pullback in the ADR and the U.S. listing. India's Infosys slips on weak 2027 growth outlook
• Negative Sentiment: Analysts have trimmed targets after the preview/guidance — Susquehanna cut its price target — and coverage notes that enterprise IT spending is being reined in amid macro and geopolitical uncertainty. Susquehanna Cuts PT on Infosys (INFY) Following Fiscal Q4 Results Preview
• Negative Sentiment: Press and analysts flagged that the sales forecast trails street estimates and reflects subdued large‑project spending, which could pressure revenue growth in the near term. Infosys Sales Forecast Trails Estimates as IT Demand Sputters

Hedge Funds Weigh In On Infosys

Large investors have recently modified their holdings of the company. Dynamic Technology Lab Private Ltd bought a new position in shares of Infosys in the 1st quarter worth $239,000. NewEdge Advisors LLC lifted its holdings in shares of Infosys by 79.9% in the 1st quarter. NewEdge Advisors LLC now owns 54,978 shares of the technology company's stock worth $1,003,000 after purchasing an additional 24,426 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Infosys by 6.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 63,155 shares of the technology company's stock worth $1,153,000 after purchasing an additional 3,804 shares in the last quarter. Finally, Trinity Street Asset Management LLP lifted its holdings in shares of Infosys by 45.5% in the 1st quarter. Trinity Street Asset Management LLP now owns 14,938,546 shares of the technology company's stock worth $201,820,000 after purchasing an additional 4,674,742 shares in the last quarter. 16.20% of the stock is currently owned by institutional investors.

Infosys Stock Performance

The business has a fifty day moving average of $13.87 and a 200-day moving average of $16.23. The company has a market capitalization of $50.64 billion, a P/E ratio of 16.26, a PEG ratio of 1.72 and a beta of 1.00.

Infosys (NYSE:INFY - Get Free Report) last issued its earnings results on Thursday, April 23rd. The technology company reported $0.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.20 by $0.03. Infosys had a return on equity of 30.60% and a net margin of 16.16%.The company had revenue of $5.04 billion for the quarter, compared to analysts' expectations of $5.02 billion. Sell-side analysts anticipate that Infosys Ltd. will post 0.78 EPS for the current year.

Infosys Company Profile

Infosys Ltd. is a digital services and consulting company, which engages in the provision of end-to-end business solutions. It operates through the following segments: Financial Services, Retail, Communication, Energy, Utilities, Resources, and Services, Manufacturing, Hi-Tech, Life Sciences, and All Other. The company was founded by Dinesh Krishnan Swamy, Senapathy Gopalakrishnan, Narayana Ramarao Nagavara Murthy, Raghavan N. S., Ashok Arora, Nandan M. Nilekani, and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.

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