EL7.AI
StocksMedium•24 July 2026•
1 min read

Analysts Cut Infosys Ratings Following Q1 Earnings Miss and Guidance Downgrade

Key Facts

1Infosys reported Q1 earnings that missed analyst estimates.
2The company lowered its FY2027 sales guidance despite an increase in current sales.

Amid rising headwinds in the IT services sector, Infosys reported Q1 earnings that fell short of analyst estimates. While the company saw an increase in current sales, it cautiously lowered its sales guidance for fiscal year 2027, signaling potential long-term growth concerns. The company posted quarterly earnings of 20 cents per share, missing the analyst consensus estimate of 21 cents per share.

Per market data, the disappointing results triggered a wave of downgrades; JP Morgan cut the stock from Overweight to Neutral with a price target of $10.9, while HSBC lowered its rating to Hold with a target of $11.47. According to EL7 data, INFY shares closed at $10.93 on July 22, 2026, having traded within a daily range of $10.82 to $11.32.

Traders should monitor the stock's stability around the $10.93 level (as of July 22, 2026 close) as institutional sentiment remains cautious following the guidance cut. With no immediate company-specific catalysts in the upcoming economic calendar, focus shifts to the leadership transition, with Ashiss Kumar Dash set to take over as CEO in April 2027, and the firm's ability to convert AI initiatives into sustained revenue growth.