shares jumped 5.07 per cent to ₹1,680.90 in morning trade on Friday, following the company’s decision to raise its FY26 revenue growth guidance and report strong deal wins in the December quarter.
The IT major upgraded its full-year constant currency revenue growth guidance to 3-3.5 per cent from the earlier 2-3 per cent, signalling improved business momentum. The revision came after Infosys reported third-quarter revenues of $5,099 million, growing 0.6 per cent sequentially in constant currency terms, slightly ahead of analyst expectations.
Brokerage firms responded positively to the results. JM Financial maintained its ‘Buy’ rating with a target price of ₹1,930, highlighting that FY27 growth is expected to accelerate driven by large deal ramp-ups and pickup in discretionary spending in BFSI and Energy & Utilities sectors. Choice Equity Broking revised its target to ₹1,865, citing strong large deal momentum and positive outlook. Motilal Oswal set a target of ₹2,200, noting early signals of AI services inflection.
The company secured large deals worth $4.8 billion during the quarter, up 92 per cent year-on-year, including a $1.6 billion contract with NHS UK. Management indicated improved traction in financial services and energy utilities, with clients increasingly viewing Infosys as their preferred AI partner. The company is currently working on 4,600 AI projects across 90 per cent of its top 200 clients.
However, profitability was impacted by a one-time labor code provision of ₹1,289 crore, which pulled down reported operating margins to 18.4 per cent. Adjusted operating margins stood at 21.2 per cent, up 20 basis points sequentially, supported by currency tailwinds and Project Maximus initiatives.
Net headcount increased by 5,043 employees to 337,034, marking an 11-quarter high, while attrition declined to 12.3 per cent from 14.3 per cent. Analysts noted the headcount addition signals management confidence in demand recovery.
The stock traded with healthy volumes of 89.10 lakh shares, with 64.90 per cent sell orders against 35.10 per cent buy orders as of 10.42 am. Year-to-date, the stock has gained 2.99 per cent despite being down 12.96 per cent over the past year.