Shares of Infosys declined even after the company reported better-than-expected earnings for the June 2025 quarter. Despite the dip, several brokerages remain bullish on the IT services major, citing its strong positioning among large-cap peers.
Infosys posted an 8.7% year-on-year increase in consolidated net profit to ₹6,921 crore for the quarter ending June 30, 2025. Revenue rose by 7.5% to ₹42,279 crore, surpassing analysts’ expectations. The company raised its FY26 revenue growth forecast to 1–3% in constant currency terms, slightly up from its earlier projection of 0–3%. It also retained its operating margin guidance at 20–22%.
However, brokerages pointed out that once inorganic contributions (0.4%) are included, the revised guidance actually reflects a slight downgrade at the upper end. This has been attributed to ongoing macroeconomic uncertainties. The manufacturing and retail sectors were most affected, though opportunities are emerging in Europe, driven by consolidation and outsourcing trends.
By 10:15 a.m., Infosys shares were trading 1% lower at ₹1,557.5 on the NSE.
What Should Investors Do?
Nuvama Institutional Equities: Maintained a ‘Buy’ rating, raising its target price from ₹1,700 to ₹1,850. The firm acknowledged Infosys' strong performance and said the conservative guidance was understandable given the macro backdrop.
Morgan Stanley: Maintained its ‘Overweight’ rating with a ₹1,700 target. It highlighted that Infosys delivered a more balanced performance than peers and is likely to post the strongest EBIT growth among large-cap IT companies this fiscal year.
CLSA: Reiterated its ‘Outperform’ call with a target of ₹1,861, noting that Infosys exceeded expectations and "ticked all the right boxes."
Bernstein: Also retained its ‘Outperform’ rating, pointing to strong revenue and order book performance.
Motilal Oswal: Held a ‘Neutral’ stance, stating that despite a strong Q1, client sentiment remains cautious. The firm highlighted continued delays in discretionary spending, persistent pricing uncertainties, and geopolitical tensions. It noted that the macro environment remains largely unchanged from the previous quarter, leading to a conservative approach in guidance.
