Infosys Shares Jump over 5% as Brokerages See Growth Revival and AI Momentum

Shares of IT giant Infosys jumped over 5% on Friday, as brokerages welcomed the its better-than-expected outlook despite a marginal dip in quarterly profit. The stock rose as much as 5.14% to ₹1,682 on the NSE, rebounding strongly from its previous close of ₹1,608.

For the December quarter, Infosys reported a 2.2% year-on-year (YoY) decline in consolidated net profit at ₹6,654 crore, compared with ₹6,806 crore a year earlier.

The drop was largely due to a one-time charge of ₹1,289 crore related to the implementation of the new labour code. Notably, similar adjustments were seen across the sector, with the company's peers like TCS and HCLTech also reporting comparable impacts.

Additionally, Infosys raised its FY26 revenue growth guidance to 3–3.5% in constant currency terms, citing better demand visibility and steady client spending. The company also maintained its operating margin outlook, signalling confidence in cost control and delivery. The IT giant reported large deal wins worth $4.8 billion, including two mega deals.

Brokerages struck an optimistic tone after the results. JM Financial reiterated its bullish stance, calling Infosys its preferred pick among large IT firms. “We now build in 3.5% constant-currency growth for FY26, raise FY27 growth estimates, and upgrade EPS by 1.5–3%. We maintain a BUY rating,” the brokerage said.

Motilal Oswal also highlighted early signs of improvement, noting that the guidance upgrade points to a recovery in discretionary spending and growing traction in AI-led services.

“The guidance upgrade is a positive step toward an AI services inflection in 2026,” it said, adding that growth could cross 6% in FY27. The brokerage also flagged stronger momentum in healthcare, financial services, and energy & utilities, supported by deal ramp-ups such as the UK NHS contract.