Infosys shares closed at Rs 1,039 on the NSE, down 0.8% after the company released its June quarter earnings. The IT services firm posted a 12% year‑on‑year jump in consolidated net profit to Rs 7,769 crore and a 14% rise in revenue to Rs 48,211 crore, but both figures fell short of market expectations.
Despite the growth, Infosys lowered the upper end of its FY27 constant‑currency revenue growth guidance to 3% from 3.5%. This adjustment reflects weaker demand and pricing pressures in the technology sector.
In a leadership announcement, the company named Ashish Kumar Dash as CEO‑designate. The transition is scheduled to take place in April 2027, signalling a planned change at the top of the organization.
Market analyst Mayank Jain of Share.Market by PhonePe highlighted a mixed outlook. He noted that revenue growth remained solid, with operating margin at 21.1% and large deal wins totaling USD 3.6 billion, 61% of which were net new business.
Jain also pointed out that AI‑led services contributed 8.2% of total revenue, and basic earnings per share rose 14.9% year‑on‑year to Rs 19.19. Free cash flow conversion stayed strong, indicating healthy cash generation.
On the downside, sequential net profit fell 8.6% to Rs 7,769 crore, and the FY27 revenue guidance was narrowed to a 1.5‑3% range from the previous 1.5‑3.5%. This reflects ongoing pressure on discretionary technology spending and a modest rise in voluntary attrition to 13%.
From a technical perspective, Infosys is trading below both its 50‑day and 200‑day simple moving averages. The stock shows a weak trend, and a break below the early July low could push prices toward the July 2020 gap near Rs 900.
Jain advises existing investors to remain cautious, describing the stock as a “sell‑on‑rally” pattern. He recommends waiting for broader sector triggers and for the share price to regain and sustain levels above its 200‑day moving average before taking new positions.
JPMorgan has downgraded Infosys to “Neutral” from “Overweight” and set a target price of Rs 1,050. The brokerage cited lower revenue performance, a repeated cut in FY27 guidance, subdued demand, AI‑led pricing deflation, and client‑specific issues as reasons for the downgrade.
JPMorgan noted that while deal signings remain healthy, AI pricing deflation is slowing the conversion of orders into revenue. Operating margins, however, are broadly in line with expectations.
Overall, Infosys faces a challenging environment with mixed financial results, a trimmed growth outlook, and a leadership transition on the horizon. Investors should monitor the company’s performance and market conditions before making new investment decisions.