Infosys share price slips 3%: Why top brokerages turn cautious after revenue guidance cut
Infosys (INFY) cut its FY27 revenue growth guidance to 1-2% from 1.5-3%, citing pricing pressure and industry weakness. Q2 revenue rose 2.1% to Rs 49,244 crore, while net profit increased 0.7% to Rs 7,823 crore. Brokerages reacted: Jefferies downgraded to 'Hold' with a Rs 1,140 target, Nomura maintained 'Buy' with a Rs 1,300 target, and Nuvama downgraded to 'Hold' with a Rs 1,200 target.
How this was made
The 30-second read
Why it matters
The guidance cut triggered analyst target reductions and a 3% share dip, indicating immediate market reaction.
Market read
Guidance downgrade is a primary catalyst for the stock's move and may influence sentiment across the Indian IT sector.
What to watch
Potential cost efficiencies from AI-driven productivity could mitigate margin pressure.
Background
Infosys, a leading Indian IT services company, reported Q2FY27 results and revised its FY27 revenue growth outlook amid pricing pressure.
Ticker impact
Infosys cut FY27 revenue growth guidance to 1-2% from 1.5-3%, prompting a 3% share decline in early trade.
likely downside as the market prices in the lower revenue outlook
Analyst downgrades and target cuts reinforce the negative view, and the stock is already down 3%.
Market effects
Indian IT services sector may face broader scrutiny as peers could see similar guidance pressures.
Indian market likely to see modest pullback in IT stocks.
Limited to investors with exposure to Infosys and comparable global IT firms.
Counterpoint
Some analysts still see upside potential if Infosys can win larger AI contracts later in FY27.
Key entities
- CompanyInfosys
Indian IT services firm
- BrokerageJefferies
Maintained Hold rating, lowered target price
- BrokerageNomura
Maintained Buy rating, reduced target price
