Infosys Share Price Falls 3.5% Following Q4 Earnings, Weak FY27 Outlook Weighs on Sentiment

Infosys Share Price Declines 3.5% Despite Strong Q4 Results

Infosys, India's second-largest IT services exporter, reported a 21% year-over-year (YoY) increase in consolidated net profit to ₹8,501 crore in its March quarter (Q4) results. However, the company's weak guidance for FY27 revenue growth of 1.5% to 3.5% in constant currency terms led to cautious sentiment in the IT major.

The stock came under pressure in both the BSE and US markets, with its share price declining 3.5% to ₹1198.80 on Friday, April 24. Its American Depository Receipts (ADR) also fell 4% to around $12.94, reflecting investor concerns over the company's near-term growth outlook despite a largely in-line quarterly performance.

Q4 Results Highlights

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For Q4FY26, Infosys reported revenue of ₹46,402 crore, a 13.4% YoY increase and 2% quarter-over-quarter (QoQ) growth. The company's EBITDA increased 13.6% YoY and 16.6% QoQ to ₹9,743 crore, while operating margin remained flat on a YoY basis but improved 2.6% QoQ to 21%.

| Comparison of Q4FY26 Results with Q4FY25 and Q3FY26 | | --- | --- | --- | | Revenue | ₹46,402 crore | ₹40,925 crore | ₹45,479 crore | | EBITDA | ₹9,743 crore | ₹8,548 crore | ₹8,369 crore | | Operating Margin | 21% | 20.5% | 18.4% |

The company's large deal wins during the quarter stood at $3.2 billion, within the guided range of $3 billion to $4 billion. EBIT margins expanded by 20 basis points, while EBIT came in slightly below Street expectations.

FY26 Results

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For the full financial year FY26, Infosys reported a 10.2% YoY rise in net profit to ₹29,440 crore, while revenue grew 9.6% YoY to ₹1,78,650 crore. Operating profit increased 5.3% YoY to ₹36,254 crore, though operating margins declined 0.8% YoY to 20.3%.

| Comparison of FY26 Results with FY25 | | --- | --- | | Revenue | ₹1,78,650 crore | ₹1,63,100 crore | | Net Profit | ₹29,440 crore | ₹26,630 crore | | Operating Profit | ₹36,254 crore | ₹34,450 crore | | Operating Margin | 20.3% | 21.1% |

Brokerage Reactions

Motilal Oswal, a leading brokerage house, has a BUY call on Infosys with a target price of ₹1,450 (~17% upside). The brokerage attributed Infosys's weak guidance to competitive intensity, pricing pressure in a low-demand environment, and ongoing deflation as AI productivity benefits are passed on to clients.

Motilal Oswal expects Infosys to grow at ~2.5% organic, slower than 3.1% constant currency (CC) in FY26, and models FY27E/FY28E revenue growth at 3.7%/3.9% YoY CC. The brokerage cut FY27E/FY28E EPS by ~2–4% and PAT by 3–4%, factoring in AI-led pricing pressure, telecom and manufacturing headwinds, partly offset by lower taxes.