Infosys shares fell to an intraday low of Rs 1,107 on the NSE after the IT major reported its Q2 FY27 results and cut its FY27 revenue growth guidance to 1%-2%.
The broader market environment has recently presented a challenging landscape for Indian equities, with benchmark indices facing pressure from geopolitical developments and crude oil prices. The technology sector is navigating a complex demand environment where clients remain cautious about discretionary spending. Customers are seeking cost efficiencies through artificial intelligence, creating additional pricing pressure on traditional IT services.
Shares of Infosys Ltd fell as much as 4% in early trade on Monday, October 26, 2026. The stock dropped to an intraday low of Rs 1,107 on the NSE, compared with a previous close of Rs 1,153.80. During the morning session, it traded around Rs 1,143, down nearly 1%. The Nifty IT index also declined, but Infosys emerged among the top losers on the Nifty after reporting weaker-than-expected September-quarter earnings.
The primary catalyst for the decline was cutting the FY27 constant currency revenue growth guidance to 1%-2%, down from the earlier 1.5%-3% range. For the July-September quarter, Infosys reported a 6.2% year-on-year increase in consolidated net profit to Rs 7,823 crore, up from Rs 7,364 crore last year. Revenue from operations rose 10.7% year-on-year to Rs 49,244 crore, and operating profit increased 10.4% to Rs 10,330 crore. The operating margin contracted by 10 basis points sequentially to 21%.
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Deal Wins And AI Growth Provide Some Support
Despite softer volumes and exiting a large European manufacturing contract, the company shared positive indicators. Infosys secured large deals worth $5.2 billion, compared with $3.6 billion in the preceding quarter, with 62% coming from net-new business. Revenue from AI services increased 29% sequentially, raising its contribution to total revenue to 10.5% from 8.2% in the June quarter.
Brokerage Targets Reflect Divided Market Views
Analysts reading the earnings report remain divided. Nomura maintained a Buy rating with a target price of Rs 1,300. Goldman Sachs retained a Neutral rating with a target price of Rs 1,000. Morgan Stanley maintained an Equal-Weight rating, raising its target price to Rs 1,075 from Rs 976. Citi retained its Neutral rating and increased its target price to Rs 1,105 from Rs 1,030.
