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Infosys shares dropped to an intraday low of Rs 1,107 on the NSE in the early trade on Monday, compared with the previous close of Rs 1,153.80.
Infosys Share Price Today.
Infosys Share Price Today: Shares of Infosys Ltd fell as much as 4% in early trade on Monday, October 26, after the IT services major reported weaker-than-expected September-quarter earnings and cut its revenue growth guidance for the current financial year. The stock emerged among the top losers on the Nifty as investors assessed the company’s near-term growth prospects amid pricing pressure and subdued technology spending.
Infosys shares dropped to an intraday low of Rs 1,107 on the NSE in the early trade on Monday, compared with the previous close of Rs 1,153.80. The stock was trading around Rs 1,143 in the morning session, down nearly 1%, according to available market data. Prices fluctuate throughout the trading session.
The decline came despite the company’s continued growth in revenue and net profit, as investors focused on the reduced FY27 growth outlook and concerns over demand in key markets.
Why Is Infosys Share Price Falling Today?
1. Infosys cuts FY27 revenue growth guidance
The primary trigger for the decline was Infosys’ decision to lower its revenue growth guidance for FY27 to 1%-2% in constant currency terms, from the earlier range of 1.5%-3%. The revised outlook reflects a challenging demand environment, intensified competition and pricing pressure. The company indicated that lower-than-expected price increases and softer volume growth had weighed on its performance during the September 2026 quarter.
The lower end of the revised guidance assumes further deterioration in the macroeconomic environment, while the upper end factors in some improvement in demand conditions. The reduction in guidance was more pronounced than analysts had anticipated, raising concerns about the company’s ability to deliver a meaningful recovery in organic growth over the coming quarters.
2. Q2 results miss market expectations
Infosys reported a 6.2% year-on-year increase in consolidated net profit to Rs 7,823 crore for the July-September quarter of FY27, compared with Rs 7,364 crore in the corresponding period last year. Revenue from operations rose 10.7% year-on-year to Rs 49,244 crore. Operating profit increased 10.4% to Rs 10,330 crore, while the operating margin contracted by 10 basis points sequentially to 21%.
However, the company’s revenue growth, operating performance and earnings fell short of market expectations, according to analyst assessments following the results. The combination of a modest profit increase, margin pressure and a weaker revenue outlook overshadowed the headline growth numbers.
3. Pricing pressure and subdued client spending
Infosys is facing a difficult demand environment as clients remain cautious about technology spending, particularly in discretionary areas. Intensifying competition is also limiting the company’s ability to secure higher prices for its services. At the same time, customers are seeking productivity improvements and cost efficiencies from artificial intelligence, creating additional pressure on traditional IT services pricing.
Analysts have also highlighted softer volumes, client project reductions and the impact of the company’s decision to exit a large European manufacturing contract as factors weighing on its near-term growth outlook.
These challenges have raised questions about how quickly Infosys can convert new business wins into revenue growth.
4. Weakness in IT stocks adds to pressure
The broader market environment has also been unfavourable for Indian equities, with benchmark indices under pressure amid concerns over crude oil prices, geopolitical developments and global economic conditions.
The Nifty IT index also declined in early trade, indicating that the selling pressure was not confined to Infosys alone. However, the company’s guidance reduction and weaker-than-expected quarterly performance provided additional stock-specific reasons for investors to reassess their positions.
Infosys Q2 Results: Key Numbers
| Particulars | Q2 FY27 | Year-on-year change |
|---|---|---|
| Consolidated net profit | Rs 7,823 crore | +6.2% |
| Revenue from operations | Rs 49,244 crore | +10.7% |
| Operating profit | Rs 10,330 crore | +10.4% |
| Operating margin | 21% | Down 10 basis points sequentially |
| FY27 revenue growth guidance | 1%-2% | Revised from 1.5%-3% |
Source: Infosys results and market reports.
Strong Deal Wins And AI Revenue Offer Some Support
Despite the near-term challenges, Infosys reported some positive business indicators during the quarter. The company secured large deals worth $5.2 billion, compared with $3.6 billion in the preceding quarter. Around 62% of the deal value came from net-new business, according to the company’s reported figures.
Revenue from AI services increased 29% sequentially, with its contribution to total revenue rising to 10.5% from 8.2% in the June quarter.
These developments could support future growth, although the pace at which large contracts translate into revenue will remain important for investors. The positive deal pipeline and AI-related business momentum have so far failed to offset concerns about near-term demand and pricing.
Infosys Share Price: What Are Brokerages Saying?
Brokerage views on Infosys remain divided following the results and guidance revision.
Nomura maintained its Buy rating on the stock with a target price of Rs 1,300, suggesting that the revised outlook could still leave room for gains if execution improves.
Goldman Sachs retained a Neutral rating with a target price of Rs 1,000, highlighting concerns over revenue visibility following the guidance reduction.
Morgan Stanley maintained an Equal-Weight rating while raising its target price to Rs 1,075 from Rs 976.
Citi retained its Neutral rating and increased its target price to Rs 1,105 from Rs 1,030.
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Ask News18Infosys shares dropped by up to 4% after the company reported weaker-than-expected second-quarter earnings and lowered its full-year FY27 revenue growth guidance to 1%-2% in constant currency terms. The decline was driven by a challenging demand environment, intense pricing pressure, and subdued technology spending by clients.
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