| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 69 | 14.8x | 17.3x | Top tier | |
Growth | 39 | 3.5% | 7.1% | Bottom tier | |
Quality | 85 | 24.7% | 4.5% | Top tier | |
Safety | 87 | — | 2.6x | Top tier | |
Capital Return | 94 | 4.16% | 0.06% | Top tier | |
Momentum | 35 | -39.9% | -1.6% | Bottom tier | |
Sentiment | 86 | 22 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
26% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Infosys Limited provides digital transformation and information technology services to enterprises, with the business drivers highlighted by management centered on artificial intelligence, technology modernization, cloud, cybersecurity, productivity improvement, and vendor consolidation. The company generates revenue from project execution, operations management, and large technology contracts across sectors such as financial services, telecommunications, manufacturing, energy and utilities, retail, and life sciences. In Q1 of fiscal year 2027, artificial intelligence services represented 8.2% of total revenue, with larger contributions from operations intelligence, artificial intelligence strategy and engineering, and data preparation for artificial intelligence.
In Q1 of fiscal year 2027, the company reported revenue of $502 million, with growth of 2.4% year over year and 1% quarter over quarter in constant currency, while acquisitions contributed about 1.1% to quarterly growth. The operating margin reached 21.1% after improving by 20 basis points quarter over quarter, the gross margin improved by 60 basis points, and free cash flow reached $955 million, while rupee-denominated earnings per share rose 15% to 19.19 rupees. Revenue was affected by about 50 basis points due to a client terminating a program in the energy, resources, and services sector, while the value of large deals reached $3.6 billion, with net new business accounting for 61% of the total.
Fiscal year 2025 results show revenue of $19.3 billion, gross profit of $5.9 billion, net income of $3.2 billion, and earnings per share of $0.76. Compared with fiscal year 2024, revenue increased from $18.6 billion and gross profit from $5.6 billion, but net income and earnings per share remained at $3.2 billion and $0.76, respectively. This means that annual revenue growth did not translate into comparable net profit growth, although the company maintained an operating margin in Q1 of fiscal year 2027 within its guidance range of 20% to 22%.
The analyst consensus on INFY is neutral, with an average target of $11.69 and a target range of $11 to $13. The average target is about 13% above the 52-week range low of $10.3, but about 61% below its high of $30, reflecting a sharp rerating consistent with the reduction in fiscal year 2027 growth guidance, weak volumes, and artificial intelligence productivity pricing pressures. The data do not provide a valid price-to-earnings ratio, so the stock's valuation here remains based on the target range and 52-week range rather than comparing earnings with a market multiple.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Artificial intelligence services revenue reached 8.2% of total revenue in Q1 of fiscal year 2027, up from 5.5% in Q3 of fiscal year 2026. The business covers six areas, including operations intelligence, artificial intelligence engineering and strategy, data preparation, agents, modernization, and programming tools. Topaz Fabric works with 15 models and helps clients select the appropriate model for the task, reduce token costs, and maintain data sovereignty. On July 23, 2026, management said this revenue had grown at a double-digit sequential rate for several quarters.
On July 23, 2026, management revised revenue growth guidance to 1.5%–3% in constant currency after Q1 fiscal year 2027 volumes came in below expectations. A client's termination of a program in the energy, resources, and services sector reduced quarterly growth by about 50 basis points, while the impact of reduced spending by a large European manufacturing client exceeded 1%. Client demands to pass through productivity gains and intense competition also pressured price increases. The revised guidance includes a contribution of about 1.7% from acquisitions and an impact of between 0.75% and 1% from the shift to offshore work.
Automated analysis for informational purposes only — not investment advice.
The operating margin reached 21.1% in Q1 of fiscal year 2027, up 20 basis points quarter over quarter, and remained within the fiscal year 2027 guidance range of 20%–22%. The margin benefited by 70 basis points from rupee depreciation and by 20 basis points from Project Maximus, while artificial intelligence investments deducted 50 basis points and the program termination deducted 40 basis points. Management expects additional pressure from wage increases and a 50-basis-point impact from acquisitions, but it is relying on a lower proportion of work performed at client locations and improved efficiency. Utilization excluding trainees increased by 1.9 percentage points to 84.9% in the same quarter.
In Q1 of fiscal year 2027, Infosys won 22 large deals with a total value of $3.6 billion, with net new business accounting for 61% of the value. The results included three contracts worth $400 million each, while 20% of the total value came from vendor consolidation deals. Geographically, the deals were distributed across 11 contracts in North America, 8 in Europe, and 3 in the rest of the world. However, management explained that artificial intelligence-related productivity gains pressure the value of business at renewal, so the full contracted value does not translate into rapid revenue growth.
Infosys recorded fiscal year 2025 revenue of $19.3 billion, gross profit of $5.9 billion, and net income of $3.2 billion. In Q1 of fiscal year 2027, free cash flow reached $955 million and rupee-denominated earnings per share rose 15% to 19.19 rupees. The company ended the quarter with cash and cash investments of $3.9 billion after returning more than $1 billion to shareholders through dividends. On July 23, 2026, management described the balance sheet as debt-free.
On July 23, 2026, the board of directors announced the appointment of Ashish Dash as chief executive officer-designate from within Infosys, with Salil Parekh's tenure set to end on March 31, 2027. Dash has spent more than 31 years at the company since joining as a software engineer and has worked in delivery, account management, sales, and leadership of sectors spanning multiple areas. According to the announcement, Dash will undergo a training period and then work under Parekh's leadership for six months as part of the transition process. Nandan Nilekani remains chairman of the board, while Jayesh Sanghrajka was the chief financial officer on the Q1 fiscal year 2027 call.