Infosys Shares Jump 5% on Strong Q3 Results and Upbeat Guidance.
Shares of Infosys Ltd rose nearly 5% in early trade on Thursday after the IT giant posted better-than-expected Q3 FY26 results and raised its revenue growth guidance, surprising the Street. As per exchange data, Infosys shares were trading around ₹1,667 at 9:25 am, up ₹69 from the previous close of ₹1,599. The stock opened strong and remained in the green throughout the session, supported by firm buying interest.
Revenue Beats Expectations
Infosys reported constant-currency revenue growth of 0.6% quarter-on-quarter, surpassing market expectations of flat growth. The company also raised its FY26 revenue growth guidance in constant currency terms to 3%–3.5%, up from the earlier 2%–3% range, citing steady discretionary tech spending and renewed momentum in its core financial services business.
Strong Deal Wins and Demand Signals
The firm secured deal wins worth $4.8 billion in Q3, up from $3.1 billion in the previous quarter. Notably, 57% of these deals were net new, reflecting fresh business additions. A large contract win from NHS UK contributed to the robust pipeline, indicating an early recovery in demand that boosted investor confidence.
Headcount at 11-Quarter High
Infosys added 11,246 employees over the last two quarters, marking its highest headcount in 11 quarters. Such hiring activity is typically seen as a positive signal of future growth and operational confidence in the IT sector.
Margins and Profit
Adjusted EBIT margin stood at 21.2%, broadly in line with estimates, while reported margins came in at 18.4%. The company recorded a one-time Labour Code impact of ₹1,289 crore. Net profit declined 9.7% year-on-year to ₹6,654 crore, compared with ₹7,365 crore last year, but markets focused on revenue growth, deal momentum, and the upgraded guidance rather than the profit drop.
US Shares Surge
Infosys’ US-listed shares jumped 10.5% on Wednesday following the earnings announcement, boosting sentiment in domestic markets.
Analysts Remain Positive
Brokerages largely retained Buy ratings. Nomura maintained its target price at ₹1,810, highlighting early signs of discretionary demand recovery and expected 4.7% dollar revenue growth in FY26. Emkay Global noted revenue beats and improving macro conditions, keeping its Buy rating with a target of ₹1,750.
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