Upside case
Bull case
$20+60.7%
INFY would need investors to value it at roughly 27x earnings — about 10x more generous than today's 17x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Infosys Limited (INFY) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
40
analysts
15 bullish · 4 bearish · 40 covering INFY
Strong Buy
0
Buy
15
Hold
21
Sell
4
Strong Sell
0
Consensus Target
$17
+33.7% vs today
Scenario Range
$13 – $20
Model bear to bull value window
Coverage
40
Published analyst ratings
Valuation Context
16.6x
Forward P/E · Market cap $51.3B
INFY price targets
Three scenarios for where INFY stock could go
Current
~$13
Confidence
65 / 100
Updated
May 1, 2026
Where we are now
Current · $13
Bear
$13
Base
$14
Bull
$20
Market caseClosest to today
Base case
$14+13.0%
At 19x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$13+0.2%
The bear case assumes sentiment or fundamentals disappoint enough to push INFY down roughly 0% from the current price.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Infosys Limited
INFY · NYSETechnologyInformation Technology ServicesMarch year-end
Infosys is a global IT services and consulting firm that provides digital transformation, technology outsourcing, and next-generation digital services to enterprises worldwide. It generates revenue primarily through IT consulting (~40%), outsourcing services (~35%), and digital services (~25%) — with most coming from North America and Europe. Its competitive moat lies in its deep client relationships, global delivery model with Indian cost advantages, and extensive expertise in enterprise systems like SAP, Oracle, and cloud platforms.
Market Cap
$51.3B
Revenue TTM
$19.8B
Net Income TTM
$3.2B
Net Margin
16.2%
INFY Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
27%Exceptional
12 quarters tracked
Revenue Beat Rate
73%Exceptional
vs consensus estimates
Avg EPS Surprise
+3.8%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$0.19/$0.19
Revenue
$4.9B/$5.0B
Q4 2025
EPS
$0.20/$0.20
Revenue
$5.1B/$5.1B
Q1 2026
EPS
$0.21/$0.20
Revenue
$5.0B/$5.0B
Q2 2026
EPS
$0.23/$0.20
Revenue
$5.0B/$5.0B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.19/$0.19 | +0.0% | $4.9B/$5.0B | -1.7% |
| Q4 2025 | $0.20/$0.20 | +0.0% | $5.1B/$5.1B | -0.6% |
| Q1 2026 | $0.21/$0.20 | +5.0% | $5.0B/$5.0B | +0.1% |
| Q2 2026 | $0.23/$0.20 | +15.0% | $5.0B/$5.0B | +1.0% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$20.1B
+1.4% YoY
FY2
$21.4B
+6.5% YoY
EPS Outlook
FY1
$0.80
+2.5% YoY
FY2
$0.86
+7.6% YoY
Trailing FCF (TTM)$3.8B
FCF Margin: 19.2%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
INFY beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
INFY Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $19.3B
Product Mix
Latest annual revenue by segment or product family
Software Services
95.3%
+4.7% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
North America
57.9%
+0.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Software Services is the largest disclosed segment at 95.3% of FY 2025 revenue, up 4.7% YoY.
North America is the largest reported region at 57.9%, up 0.0% YoY.
INFY Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Fairly Valued
Fair value est. $12 — implies +0.1% from today's price.
Upside to Fair Value
0.1%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
INFY
16.6x
vs
S&P 500
25.2x
34% discount
vs Technology Trailing P/E
INFY
16.6x
vs
Technology
27.5x
39% discount
vs INFY 5Y Avg P/E
Today
16.6x
vs
5Y Average
27.7x
40% discount
Forward PE
16.6x
S&P 500
19.1x
-13%
Technology
21.7x
-24%
5Y Avg
—
—
Trailing PE
16.6x
S&P 500
25.2x
-34%
Technology
27.5x
-39%
5Y Avg
27.7x
-40%
PEG Ratio
2.49x
S&P 500
1.75x
+43%
Technology
1.47x
+70%
5Y Avg
—
—
EV/EBITDA
10.6x
S&P 500
15.3x
-30%
Technology
17.4x
-39%
5Y Avg
18.8x
-44%
Price/FCF
12.5x
S&P 500
21.3x
-41%
Technology
19.8x
-37%
5Y Avg
26.9x
-53%
Price/Sales
2.7x
S&P 500
3.1x
-15%
Technology
2.4x
+10%
5Y Avg
4.8x
-45%
Dividend Yield
4.60%
S&P 500
1.88%
+145%
Technology
1.18%
+291%
5Y Avg
2.21%
+108%
| Metric | INFY | S&P 500 | Technology | 5Y Avg INFY |
|---|---|---|---|---|
| Forward PE | 16.6x | 19.1x-13% | 21.7x-24% | — |
| Trailing PE | 16.6x | 25.2x-34% | 27.5x-39% | 27.7x-40% |
| PEG Ratio | 2.49x | 1.75x+43% | 1.47x+70% | — |
| EV/EBITDA | 10.6x | 15.3x-30% | 17.4x-39% | 18.8x-44% |
| Price/FCF | 12.5x | 21.3x-41% | 19.8x-37% | 26.9x-53% |
| Price/Sales | 2.7x | 3.1x-15% | 2.4x+10% | 4.8x-45% |
| Dividend Yield | 4.60% | 1.88% | 1.18% | 2.21% |
INFY trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolINFY Financial Health
Verdict
Exceptional
INFY generates $3.8B in free cash flow at a 19.2% margin — 31.8% ROIC signals a durable competitive advantage · returns 4.6% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$19.8B
Revenue Growth
TTM vs prior year
+3.8%
Gross Margin
Gross profit as a share of revenue
30.0%
Operating Margin
Operating income divided by revenue
20.3%
Net Margin
Net income divided by revenue
16.2%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$0.78
Free Cash Flow (TTM)
Cash generation after capex
$3.8B
FCF Margin
FCF as share of revenue — the primary cash quality signal
19.2%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
31.8%
ROA
Return on assets, trailing twelve months
18.6%
Cash & Equivalents
Liquid assets on the balance sheet
$2.9B
Net Cash
Cash exceeds total debt — no net leverage
$1.9B
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
29.6%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
4.6%
Dividend
4.6%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$0.58
Payout Ratio
Share of earnings distributed as dividends
76.5%
Shares Outstanding
Current diluted share count
4.1B
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageINFY Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Currency Risk
Fluctuations in foreign exchange rates can erode interest income, increase finance costs, and compress overall profitability, even though Infosys employs hedging strategies to mitigate exposure.
High Risk
Tech Innovation
The rapid rise of generative AI is reshaping client expectations, requiring Infosys to continuously invest in new capabilities to avoid losing market share.
High Risk
Competitive Pressure
Infosys faces intense competition from both established IT firms and emerging niche technology providers, which can squeeze margins and limit growth opportunities.
Medium
Tax Liability
Net profit from services rendered outside India is subject to foreign tax, and mismanagement could trigger unexpected expenses or penalties.
Medium
Revenue Growth
Despite strong profitability, Infosys’ revenue growth has remained in the low single digits, limiting upside potential and exposing the company to slower expansion.
Lower
Analyst Sentiment
A recent analyst downgrade signals a reassessment of the company’s growth trajectory, potentially adding selling pressure and affecting the stock’s valuation.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why INFY Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Robust Profitability and Margin Strength
Infosys’ financials are among the strongest in the industry, with Return on Assets, Return on Equity, and Return on Invested Capital all ranking in the top 10% of peers. Gross, operating, and net margins stand at 29.8%, 20.4%, and 16.2% respectively as of March 25, 2026, underscoring solid profitability.
AI‑First Digital Transformation Strategy
The company is pivoting toward high‑growth digital domains such as AI, cloud, and cybersecurity, leveraging its Infosys Topaz platform. Infosys is actively developing generative AI solutions and has engaged a large percentage of its top clients on AI initiatives, positioning it to capture the expanding AI services market.
Global Delivery Model and Talent Pool
Infosys’ well‑established Global Delivery Model enables efficient resource allocation and cost‑effective services worldwide. Coupled with a deep talent pool, this model allows the firm to compete effectively against rivals across multiple geographies.
Strategic Acquisitions in High‑Growth Verticals
The firm uses acquisitions to deepen expertise in high‑growth verticals and expand its market footprint, particularly in the United States. These targeted deals enhance Infosys’ capabilities and broaden its service portfolio in key sectors.
Talent Development and Upskilling Initiative
Infosys invests heavily in training and upskilling employees in emerging technologies, ensuring a skilled workforce ready to meet evolving digital transformation demands. This focus on talent development supports sustained innovation and service excellence.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
INFY Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$12.64
52W Range Position
3%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$12.16
+3.9% from the low
52-Week High
$30.00
-57.9% from the high
1 Month
-7.74%
3 Month
-24.94%
YTD
-30.4%
1 Year
-28.9%
3Y CAGR
-6.1%
5Y CAGR
-7.4%
10Y CAGR
+3.2%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
INFY vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
16.6x
vs 12.6x median
+32% above peer median
Revenue Growth
+1.4%
vs +4.8% median
-71% below peer median
Net Margin
16.2%
vs 15.1% median
+7% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
INF INFY Infosys Limited | $51.3B | 16.6x | +1.4% | 16.2% | Hold | +33.7% |
WIT WIT Wipro Limited | $20.9B | 0.2x | +2.6% | 15.1% | Hold | +268.8% |
CTS CTSH Cognizant Technology Solutions Corporation | $24.3B | 9.0x | +4.8% | 10.4% | Hold | +62.3% |
MPW MPWR Monolithic Power Systems, Inc. | $81.2B | 76.7x | +22.7% | 22.1% | Buy | -2.3% |
ACN ACN Accenture plc | $108.7B | 12.6x | +4.7% | 10.7% | Buy | +71.8% |
IBM IBM International Business Machines Corporation | $211.8B | 18.2x | +4.9% | 15.6% | Hold | +37.2% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
INFY Dividend and Capital Return
INFY returns 4.7% total yield, led by a 4.67% dividend.
Dividend WatchFCF Adequate
Total Shareholder Yield
4.7%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
4.67%
Payout Ratio
76.5%
How INFY Splits Its Return
Div 4.67%
Dividend 4.67%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.58
Growth Streak
Consecutive years of dividend increases
4Y
3Y Div CAGR
7.9%
5Y Div CAGR
12.2%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
2 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
4.1B
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2025 | $0.52 | -11.4% | 0.0% | 3.2% |
| 2024 | $0.58 | +35.8% | 0.0% | 2.4% |
| 2023 | $0.43 | +4.5% | 1.9% | 4.2% |
| 2022 | $0.41 | +11.5% | 1.4% | 3.1% |
| 2021 | $0.37 | +26.9% | 0.0% | 1.5% |
FAQ
7 questionsINFY Investor Questions
Common questions answered from live analyst data and company financials.
01Is Infosys Limited (INFY) stock a buy or sell in 2026?
Infosys Limited (INFY) is rated Hold by Wall Street analysts as of 2026. Of 40 analysts covering the stock, 15 rate it Buy or Strong Buy, 21 rate it Hold, and 4 rate it Sell or Strong Sell. The consensus 12-month price target is $17, implying +33.7% from the current price of $13. The bear case scenario is $13 and the bull case is $20.
02What is the INFY stock price target for 2026?
The Wall Street consensus price target for INFY is $17 based on 40 analyst estimates. The high-end target is $20 (+58.2% from today), and the low-end target is $14 (+13.2%). The base case model target is $14.
03Is Infosys Limited (INFY) stock overvalued in 2026?
INFY trades at 16.6x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals fairly valued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Infosys Limited (INFY) stock in 2026?
The primary risks for INFY in 2026 are: (1) Currency Risk — Fluctuations in foreign exchange rates can erode interest income, increase finance costs, and compress overall profitability, even though Infosys employs hedging strategies to mitigate exposure. (2) Tech Innovation — The rapid rise of generative AI is reshaping client expectations, requiring Infosys to continuously invest in new capabilities to avoid losing market share. (3) Competitive Pressure — Infosys faces intense competition from both established IT firms and emerging niche technology providers, which can squeeze margins and limit growth opportunities. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Infosys Limited's revenue and earnings forecast?
Analyst consensus estimates INFY will report consensus revenue of $20.1B (+1.4% year-over-year) and EPS of $0.80 (+2.5% year-over-year) for the upcoming fiscal year. The following year, analysts project $21.4B in revenue.
06When does Infosys Limited (INFY) report its next earnings?
A confirmed upcoming earnings date for INFY is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Infosys Limited generate?
Infosys Limited (INFY) generated $3.8B in free cash flow over the trailing twelve months — a free cash flow margin of 19.2%. INFY returns capital to shareholders through dividends (4.7% yield) and share repurchases ($0 TTM).