Brokerages UBS and HSBC have offered contrasting outlooks on Infosys following its weaker-than-expected fiscal second quarter results and another reduction in its FY27 revenue growth guidance. While UBS maintained its Buy rating with a target price of Rs 1,415, implying an upside of around 23 percent, HSBC retained its Hold rating and cautioned that wage hikes could put further pressure on operating margins.
Infosys reported a 6.2 percent year-on-year rise in net profit and 10.7 percent revenue growth for July-September quarter, but its operating performance fell short of expectations. The company also lowered its FY27 constant-currency revenue growth guidance to 1-2 percent from 1.5-3 percent, marking its weakest annual growth forecast in seven years. The company maintained its operating margin forecast of 20-22 percent.
Infosys stock closed marginally higher at Rs 1,153.80 on Friday, ahead of the earnings announcement. The stock has declined 28.2 percent so far in 2026, compared with a 13.6 percent fall in the Nifty 50. The company's market capitalisation stood at approximately Rs 4.7 lakh crore.
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UBS maintained its Buy rating on Infosys with a target price of Rs 1,415 per share, implying an upside of approximately 23 percent from Friday's closing price. The brokerage said that Infosys' Q2 FY27 performance fell short of expectations, prompting another reduction in its full-year revenue growth guidance. Revenue grew 1.2 percent sequentially in constant currency terms, below UBS' estimate of 1.5 percent. Reported earnings per share of Rs 19.3 were also 1-2 percent below estimates.