Infosys: UBS, Nomura, HSBC, Citi and Goldman Sachs on the Q2 guidance cut
Infosys received mixed guidance from five brokerages after its Q2 earnings. UBS set the highest target at Rs 1,415, while Goldman Sachs had the lowest at Rs 1,000. The company cut its FY27 revenue growth guidance, citing a sluggish demand environment, but reported a large deal to offset some of the impact. Infosys stock closed at Rs 1,153.80 on Friday.
How this was made
The 30-second read
Why it matters
The guidance downgrade is likely to trigger a sell‑off, but the large mega‑deal may provide a floor to earnings.
Market read
Guidance cut is a primary catalyst for INFY's near‑term price action; investors should reassess earnings expectations.
What to watch
Margin guidance remains unchanged and the deal size may provide longer‑term upside despite short‑term guidance cut.
Background
Infosys, a leading Indian IT services firm, released its Q2 broker notes showing a sequential revenue growth miss and a cut to FY27 guidance.
Ticker impact
Infosys cut FY27 guidance to 1-2% growth and posted weaker-than-expected Q2 revenue, a new primary disclosure.
downward pressure as investors price in slower growth
The guidance cut is the first report of reduced FY27 organic revenue growth, which typically triggers sell‑offs in the short term.
Market effects
May weigh on Indian IT services sector as peers face similar demand slowdown.
Could dampen sentiment on Indian equity markets, especially tech‑heavy indices.
Limited; primarily affects investors with exposure to Infosys or Indian IT sector.
Counterpoint
The $5B mega‑deal could offset growth headwinds, offering a buying opportunity if the market overreacts.
Key entities
- CompanyInfosys
Indian IT services provider (ticker INFY).
- BrokerageUBS
Raised target to Rs 1,415, citing weaker quarter.
