Should I Buy INFY? INFY 2026 Analysis

Should You Buy Infosys Ltd (INFY) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

17.930

1 Day change

-1.75%

52 Week Range

30.000

Analysis Updated At

2026/01/26

Infosys Ltd (INFY) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has positive catalysts such as strong brand recognition and initiatives in digital transformation, the financial performance shows declining net income, EPS, and gross margins. Additionally, technical indicators do not present a clear bullish signal, and there are no strong trading signals from Intellectia Proprietary Trading Signals. It is advisable to hold off on purchasing until stronger financial or technical signals emerge.

Technical Analysis

The MACD histogram is negative and expanding, indicating bearish momentum. RSI is neutral at 47.54, suggesting no clear trend. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), but the stock is trading below the pivot level of 18.403. Key support is at 17.643, and resistance is at 19.164.

Options Data

Bearish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Infosys opened a new innovation hub in Zurich to support digital transformation.
Recognized as the third most valuable IT services brand globally with a strong 15% CAGR in brand value over six years.
Maintained carbon neutrality for six consecutive years and continues to empower millions through digital skilling initiatives.

Neutral/Negative Catalysts

Financial performance in Q3 2026 shows a decline in net income (-7.31% YoY), EPS (-5.26% YoY), and gross margin (-7.25% YoY).
MACD and RSI do not indicate strong bullish momentum.
No significant insider or congress trading activity to suggest confidence from influential figures.

Financial Performance

In Q3 2026, revenue increased by 3.24% YoY to $5.11 billion. However, net income dropped by 7.31% YoY to $747.08 million, EPS declined by 5.26% YoY to $0.18, and gross margin fell by 7.25% YoY to 28.28%.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

TD Cowen raised the price target to $17 from $16 but maintained a Hold rating. The firm is constructive on the services sector for 2026, citing gradual improvement in enterprise IT spending and discounted valuations.

6 Analyst Rating

Wall Street analysts forecast INFY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for INFY is 18.95 USD with a low forecast of 17 USD and a high forecast of 22.8 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Buy

5 Hold

0 Sell

Hold

Current: 18.250

Low

Averages

18.95

High

22.8

Current: 18.250

Low

Averages

18.95

High

22.8

TD Cowen

Hold

upgrade

$16 -> $17

AI Analysis

2026-01-09

Reason

TD Cowen

Price Target

$16 -> $17

AI Analysis

2026-01-09

upgrade

Hold

Reason

TD Cowen raised the firm's price target on Infosys to $17 from $16 and keeps a Hold rating on the shares. The firm is "constructive" on services sector setup for 2026, anticipating gradual improvement in enterprise IT spend at a time when average valuations remain discounted.

BMO Capital

Market Perform

downgrade

$20 -> $18

2025-10-17

Reason

BMO Capital

Price Target

$20 -> $18

2025-10-17

downgrade

Market Perform

Reason

BMO Capital lowered the firm's price target on Infosys to $18 from $20 and keeps a Market Perform rating on the shares. The company reported a "reasonable" Q2 with a slight raise to the bottom end of the FY26 guide, though the firm also thought the commentary on the demand environment remains subdued, including no improvement in smaller deals from the June quarter, the analyst tells investors in a research note. Infosys called out positive developments with respect to AI-related demand, though BMO remains skeptical on AI being a long-term tailwind for services, the firm added.

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INFY Should I Buy

INFY Should I Buy

Should You Buy Infosys Ltd (INFY) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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