Infosys Limited research snapshot
INFY AI stock analysis reads Infosys Limited as a profitable, cash-generative global IT services company whose client relationships, delivery scale, and growing enterprise AI work support resilience, while cautious client spending, pricing pressure, and a trimmed fiscal-year growth outlook limit conviction. At the August 2, 2026 cutoff, the latest available regular-session close was $12.03 on July 31, 2026. That price multiplied by 4.05 billion shares produces about $48.7 billion of market value, and StockAnalysis reported $47.94 billion. Q1 FY2027 results reported July 23, 2026 showed $5.08 billion of revenue, 21.08 percent operating margin, $955 million of free cash flow, and AI contributing 8.2 percent of revenue, while FY2027 constant-currency revenue-growth guidance was trimmed to 1.5 to 3.0 percent. The INFY AI stock forecast uses scenarios rather than a precise price prediction, and this page is informational research rather than investment advice.
Current price
$12.03
Market cap
About $48 billion
AI score
66 / 100
Rating
Profitable IT services leader with rising AI revenue but trimmed near-term growth guidance
Trend status
Above the 50-day moving average, below the 200-day moving average
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Infosys sells consulting, application services, outsourcing, cloud, engineering, and AI-enabled transformation to large enterprises across industries and regions, with Q1 FY2027 revenue of $5.08 billion. | High |
| Moat | Embedded enterprise relationships, global delivery scale, domain knowledge, talent systems, and switching friction support retention, but Accenture, TCS, Cognizant, Wipro, and client insourcing constrain pricing power. | Medium-high |
| Management | CEO and MD Salil Parekh leads through March 2027, with Ashiss Kumar Dash named CEO-designate to take charge on April 1, 2027. Performance-linked and equity-based incentives support alignment, but the transition adds a new execution variable. | Medium-high |
| Financial trend | Q1 FY2027 revenue rose to $5.08 billion with 2.4 percent constant-currency growth, a 21.08 percent operating margin, and $955 million of free cash flow. Trailing revenue was $20.30 billion and net income was $3.32 billion. | High |
| Valuation | At $12.03, StockAnalysis listed about 14.4x trailing earnings, 12.6x price to free cash flow, and a 7.93 percent free-cash-flow yield. financial_rigor.py recalculated a 14.85x trailing PE and a 7.81 percent FCF yield using $0.81 EPS and $0.94 free cash flow per share. | Medium-high |
| Technical trend | The July 31 snapshot placed INFY above the 50-day moving average of $11.63 but below the 200-day moving average of $14.70, with RSI near 56 showing neutral to improving momentum. | Medium |
| Risk level | Risk is moderate to high because client discretionary spending, AI-driven pricing pressure, currency changes, wage costs, competition, and the upcoming CEO handoff can alter growth and margins quickly. | Medium-high |
| AI confidence | High for reported financials and quote math. Medium for AI monetization and scenario outcomes because project timing and client productivity sharing are not directly observable. | High data confidence |
| Investment certainty | Medium certainty. The balance sheet and cash generation provide support, while the FY2027 1.5 to 3.0 percent constant-currency revenue-growth guidance highlights a modest near-term growth outlook and analysts lowered price targets after Q1. | Medium |
INFY AI stock forecast
The INFY AI stock forecast uses scenario ranges around the $12.03 July 31, 2026 close rather than a point target. A financial_rigor.py three-scenario model using $0.81 trailing EPS produced mechanical three-year outputs near $17.20 in a bull case, $12.20 in a base case, and $8.10 in a bear case. StockAnalysis listed a consensus Hold rating with a $11.85 average price target. These outputs are assumptions about earnings growth and valuation multiples, not predictions.
$15 to $17
More likely if enterprise technology spending improves, large deals convert to revenue without material pricing concessions, AI work such as the 8.2 percent of Q1 FY2027 revenue expands wallet share, margins stay within the 20 to 22 percent FY2027 range, and the market re-rates growth after the 2027 CEO handoff.
$11 to $13
More likely if the company delivers near its 1.5 to 3.0 percent FY2027 constant-currency revenue-growth guidance, preserves margin through utilization and delivery efficiency, and the market continues to value it near the mid-teens earnings multiple, consistent with the consensus price target near $11.85.
$8 to $10
More likely if client budgets weaken further, AI productivity becomes a net pricing headwind, retail demand stays weak, wage or currency costs rise, the CEO transition creates distraction, or investors assign a lower multiple to low-growth IT services, as reflected in the $9 target from one US broker.
INFY AI technical analysis
INFY AI technical analysis starts from the $12.03 July 31, 2026 close, the most recent confirmed regular-session close before the August 2 cutoff. StockAnalysis listed a 50-day moving average of $11.63, a 200-day moving average of $14.70, RSI of 56.12, a 52-week range of $10.30 to $30.00, and about 25.8 million average shares of 20-day volume. This static page does not fetch request-time chart data, so live levels should be confirmed before use.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $12.03 | StockAnalysis listed this as the July 31, 2026 regular-session close. The August 2 cutoff follows that confirmed session close. |
| Near support | $11.63, then $10.30 | The 50-day moving average is $11.63 and the 52-week low is $10.30. Price reclaimed the 50-day level in late July, and a sustained break below $10.30 would signal renewed downside risk. |
| Near resistance | $14.70 | The 200-day moving average is $14.70. Reclaiming this level would be the strongest signal that the longer-term downtrend is turning. |
| 50-day moving average | $11.63 | StockAnalysis statistic as of the August 2, 2026 snapshot. Price was trading above this short-term trend reference. |
| 200-day moving average | $14.70 | StockAnalysis statistic as of the August 2, 2026 snapshot. Price remained below this longer-term trend reference. |
| Momentum | Neutral to improving | RSI was 56.12, above the midpoint and up from 44.40 in the prior month. Price above the 50-day average keeps momentum constructive until a retest fails. |
| Volume | About 25.8M average shares | StockAnalysis listed 25,839,317 shares as 20-day average volume. A breakout toward the 200-day average is more credible with sustained participation above this reference. |
| Volatility | Low beta, event-sensitive | The reported five-year beta was 0.13, yet earnings, guidance, client-spending news, currency changes, and the CEO transition can still create sharp discrete moves. |
| Invalidation | Close below $10.30 support | A failure below the 52-week low would invalidate a support-based setup. A trend-following setup also weakens if price cannot hold the 50-day average near $11.63. |
INFY AI trading strategy
The INFY AI trading strategy is a rules-based monitoring framework for a global IT services ADR. It is not personalized advice and should be paired with position sizing, live market data, earnings-calendar review, and an explicit invalidation level.
Watch whether INFY can hold above the $11.63 50-day moving average with volume near or above its 20-day average, then treat the $14.70 200-day moving average as the next longer-term test before momentum can be called durable.
Invalidate the setup if price loses the $10.30 support area, if FY2027 guidance or margin commentary deteriorates further, or if the CEO transition distracts execution.
If INFY returns toward the $10.30 to $11.00 zone, track whether new contract wins, cash generation, and margin execution improve while price holds the 50-day average before treating weakness as a buying area.
Do not average down solely because the multiple looks lower if client spending or pricing weakens and technical support breaks.
Track constant-currency revenue growth against the 1.5 to 3.0 percent FY2027 guidance, large-deal TCV such as the $3.6 billion reported in Q1 FY2027, AI revenue share, operating margin against the 20 to 22 percent range, free cash flow conversion, attrition, retail and financial-services demand, and the April 2027 leadership handoff.
Reduce confidence if reported growth falls below guidance, margins leave the guidance range, AI productivity benefits are passed through as lower pricing without offsetting volume, or the CEO transition creates management distraction.
Investment research summary
Customers pay Infosys to run, modernize, secure, and transform critical technology operations, often through multi-year relationships where reliable delivery and specialized talent matter as much as software tools.
The moat comes from enterprise switching friction, delivery scale, industry knowledge, offshore talent, client trust, and partner ecosystems. It is durable but not absolute because large IT services competitors offer similar capabilities.
The thesis can fail if AI compresses billable effort faster than it creates new client work, if customers cut discretionary projects, or if competitors use lower prices and automation to weaken margins and retention. The trimmed FY2027 guidance shows this risk is already partly visible.
Salil Parekh leads an AI-first positioning effort through March 2027, and Ashiss Kumar Dash, a roughly 30-year Infosys veteran, becomes CEO-designate effective April 1, 2027. The important test is converting strategy, large deals, and partnerships into durable growth while keeping margins and talent intact through the transition.
Cloud modernization, cybersecurity, data, and generative AI are long-term enterprise priorities. AI already generated 8.2 percent of Q1 FY2027 revenue, and management describes a large AI services opportunity. The counterforce is that automation can change how services are priced and delivered, making revenue growth less certain than technology adoption alone suggests.
A roughly 14.4x trailing earnings multiple, about 12.6x price to free cash flow, and a 7.93 percent free-cash-flow yield provide more valuation support than many higher-growth technology stocks, especially with $2.20 billion of net cash. A margin of safety still depends on whether Infosys can avoid a prolonged low-growth, lower-multiple outcome.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| INFY price | $12.03 at the July 31, 2026 close | StockAnalysis quote snapshot | August 2, 2026 |
| Market capitalization | About $47.94 billion reported, and about $48.72 billion as $12.03 times 4.05B shares | StockAnalysis quote and financial_rigor.py verification | August 2, 2026 |
| Shares outstanding | 4.05 billion | StockAnalysis share statistics | August 2, 2026 |
| Q1 FY2027 revenue | $5.08 billion, up 2.4% in constant currency, 14.0% in Indian rupees | Infosys Q1 FY27 results reported July 23, 2026 | August 2, 2026 |
| Q1 FY2027 net profit and operating margin | INR 7,769 crore net profit, up 12.3% year on year, and 21.08% operating margin | Infosys Q1 FY27 results and press coverage | August 2, 2026 |
| Q1 FY2027 free cash flow | $955 million, about 116.4% cash conversion of net profit | Infosys Q1 FY27 results | August 2, 2026 |
| Q1 FY2027 AI revenue and large deals | AI at 8.2% of revenue, and $3.6 billion large-deal TCV with 61% net-new | Infosys Q1 FY27 results | August 2, 2026 |
| FY2027 guidance | 1.5% to 3.0% constant-currency revenue growth and 20% to 22% operating margin | Infosys Q1 FY27 results and press coverage | August 2, 2026 |
| Trailing financials | $20.30 billion revenue, $3.32 billion net income, and $0.81 EPS over the trailing twelve months | StockAnalysis statistics | August 2, 2026 |
| Cash, debt, and net cash | $3.12 billion cash, $923 million debt, and $2.20 billion net cash | StockAnalysis statistics, sourced from S&P Global Market Intelligence | August 2, 2026 |
| Free cash flow | $3.80 billion trailing free cash flow, $0.94 per share | StockAnalysis statistics, sourced from S&P Global Market Intelligence | August 2, 2026 |
| Valuation ratios | PE 14.43, forward PE 14.39, P/FCF 12.60, PB 4.96, and 7.93% free-cash-flow yield | StockAnalysis statistics | August 2, 2026 |
| Technical indicators | 50-day $11.63, 200-day $14.70, RSI 56.12, 52-week range $10.30 to $30.00 | StockAnalysis statistics snapshot | August 2, 2026 |
| Analyst consensus | Hold rating from 14 analysts with an average price target of $11.85, lowered by several brokers after Q1 FY2027 | StockAnalysis forecast and press coverage | August 2, 2026 |
| CEO succession | Ashiss Kumar Dash named CEO-designate on July 23, 2026, to succeed Salil Parekh as MD and CEO on April 1, 2027 | Infosys press release and press coverage | August 2, 2026 |
This INFY AI stock analysis page is an informational tool only and is not investment advice, a recommendation, or a promise of future returns. Forecast scenarios are based on available public data as of August 2, 2026 and can be wrong if client spending, AI economics, financial results, valuation, technical trends, the CEO transition, or market conditions change.
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