INFY Should I Buy
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Infosys Ltd (INFY) is not a strong buy at the moment for a beginner investor with a long-term strategy. Despite some positive catalysts such as hedge fund buying and a potential partnership expansion with ExxonMobil, the technical indicators are bearish, the financial performance shows declining profitability, and options data suggests bearish sentiment. It is better to wait for clearer bullish signals or improved financial performance before investing.
The stock is currently in a bearish trend. The MACD histogram is negative and expanding, RSI indicates the stock is oversold at 13.818, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). Key support is at 14.806, with resistance at 18.011. Pre-market price is $14.8, up 4.15%, but this does not confirm a reversal of the bearish trend.
Hedge funds are significantly increasing their buying activity, with a 2577.23% increase in the last quarter.
Infosys is expanding its partnership with ExxonMobil to develop energy-efficient immersion fluids for data centers, which could drive future growth.
Financial performance in Q3 2026 shows declining profitability: Net income dropped by -7.31% YoY, EPS decreased by -5.26%, and gross margin fell by -7.25%.
Bearish technical indicators and options data suggest negative sentiment in the short term.
In Q3 2026, revenue increased by 3.24% YoY to $5.1 billion, but net income dropped by -7.31% YoY to $747 million. EPS fell by -5.26% to $0.18, and gross margin decreased to 28.28%, down -7.25% YoY. These trends indicate pressure on profitability despite modest revenue growth.
TD Cowen raised the price target to $17 from $16 and maintains a Hold rating. The firm is constructive on the services sector for 2026, anticipating gradual improvement in enterprise IT spending. However, the Hold rating reflects cautious optimism rather than a strong buy recommendation.
