Infosys Q4: Broker targets, FY27 growth cut 2026

Why Infosys’ guidance is driving the narrative

Infosys Ltd slipped to the top of the Nifty losers in early trade on April 24 after reporting Q4FY26 results and issuing a softer growth outlook for FY27. The immediate concern for investors was not the quarter’s profit performance, but management’s revenue guidance range. Brokerages turned more cautious, pointing to demand uncertainty, slower decision-making and competitive intensity. The move was also reflected in the company’s US-listed ADR, which fell overnight after the results.

Q4FY26 results: profit up sharply, revenue growth modest

Infosys reported a strong quarter on profitability. Net profit rose 27.8 percent quarter-on-quarter to ₹8,501 crore, aided by margin expansion and lower tax outgo. Revenue growth, however, remained modest at 2 percent sequentially. The mix of a better bottom line but slower topline growth shaped how analysts assessed the print.

FY27 outlook: 1.5-3.5% guidance flags demand uncertainty

For FY27, Infosys guided to 1.5-3.5 percent constant-currency revenue growth. Brokerages flagged this as a key negative, interpreting the range as a sign of continued softness in discretionary spending and delayed client decision-making. The guidance also became the main reference point for target price revisions in post-result notes.

Stock and ADR reaction after the results

Infosys shares fell 3.1 percent in early trade on Friday. At around 9:16 am, the stock traded at ₹1,202.6 versus the previous close of ₹1,231.8 on the NSE. The ADR declined 4.01 percent overnight after the results announcement, indicating a weak near-term reaction across markets.

What key brokerages said: caution rises despite the beat

Citi maintained a ‘neutral’ rating and cut its target price to ₹1,300. It cited a revenue and margin miss, along with slower decision-making and rising competition. Jefferies retained a ‘hold’ rating with a target price of ₹1,235, and said weak guidance, lower deal wins and headcount decline could weigh on growth.

Motilal Oswal highlighted a tough outlook, pointing to AI-led deflationary pressures and a 33 percent sequential decline in total contract value (TCV). Still, some brokerages remained constructive: Nomura and HSBC retained ‘buy’ ratings, citing stable margins and a possible recovery supported by deal wins and AI partnerships, with upside if growth trends move towards the upper end of guidance.

Deal commentary in focus: TCV and headcount references

Two specific operating signals were highlighted by brokerages in their notes. Motilal Oswal pointed to a 33 percent sequential fall in total contract value, a metric closely watched for near-term revenue visibility. Jefferies referred to headcount decline and lower deal wins as potential drags. These points reinforced the market’s emphasis on demand visibility rather than just quarterly profitability.

Technical and derivatives signals traders are watching

Technical commentary in the provided notes described Infosys as remaining in a weak structure, trading below key moving averages. The 20 EMA was cited as immediate resistance, with the broader trend still tilted down as long as the stock stays below the 50 EMA. The ₹1,330-₹1,350 zone was referenced as an area of rejection after a brief pullback rally in April.

On the downside, ₹1,239 was cited as a crucial support, with a break potentially opening the path towards ₹1,185. In derivatives, options positioning for the 28 April expiry showed a strong call build-up at the ₹1,300 strike, suggesting resistance around that level. The at-the-money strike stood at ₹1,270, with a combined straddle premium of about ₹56, implying an expected move of roughly ±4.4% into expiry.

Sector backdrop: IT index weakness adds pressure

The broader IT sector context has remained challenging. The NIFTY IT index was noted as being down nearly 20 percent this year in the lead-up to the Q4 result. Ahead of the Q4 announcement, Infosys shares closed 3.4 percent lower at ₹1,268 on April 22, and the stock was described as being down over 21 percent so far this year amid market volatility.

Over the past one year, Infosys stock has declined 16.3 percent, compared with a 0.3 percent decline in the Nifty 50. That relative underperformance helps explain why guidance sensitivity has remained high for large-cap IT.

Key numbers at a glance

Brokerage ratings and targets mentioned in the notes

What investors will track from here

From the information provided, the next market debate is likely to center on whether Infosys can deliver within its FY27 constant-currency guidance band and what that implies for deal momentum. Investors will also continue to monitor signals referenced by brokerages, including TCV movement, headcount trends and deal wins.

Conclusion

Infosys delivered a strong quarter on profit, but its 1.5-3.5 percent FY27 constant-currency revenue growth guidance shifted attention back to demand uncertainty. Near-term sentiment remains closely tied to execution and visibility indicators such as deal wins and TCV trends, alongside key technical levels cited by traders.