Infosys Ltd is positioned for strong market performance after upgrading its revenue guidance and receiving positive analyst coverage, with American Depositary Receipts surging 10% overnight following the announcement.

Guidance Upgrade Drives Optimism

The IT services major lifted its constant-currency revenue growth guidance for FY26 to 3-3.5%, representing an upward revision from the earlier 2-3% band. This guidance upgrade signals improved demand conditions despite the challenging environment facing large-cap Indian IT services companies, which continue to grapple with cautious client spending and slower decision-making cycles.

Mixed Q3 Financial Performance

The guidance upgrade came alongside mixed quarterly results for the December quarter. While revenue growth remained robust, profitability faced pressure during the period.

Despite the decline in consolidated net profit, revenue growth in both rupee and dollar terms exceeded consensus estimates, demonstrating the company's resilience in execution.

Brokerage Recommendations and Target Prices

Multiple brokerages have responded positively to Infosys' performance and guidance revision, with target prices ranging from ₹1,750.00 to ₹2,076.00.

Centrum maintains the most bullish outlook, citing sustained traction in verticals such as BFSI and rising adoption of AI-led services. The brokerage views the guidance upgrade as reflecting management confidence in the demand environment, supported by strong deal pipeline and large deal wins.

Jefferies believes the upgraded guidance largely reflects Q3 outperformance rather than Q4 demand improvement. The brokerage has raised revenue estimates by up to 1% and expects Infosys to deliver a 7.50% recurring EPS CAGR over FY26-28.

Nomura continues positioning Infosys as its top large-cap pick in Indian IT services, noting steady demand support despite margins coming in marginally below expectations.

Growth Drivers and Market Position

Several factors are supporting the positive outlook for Infosys:

• Sector Performance: Q3 growth was led by Life Sciences, BFSI, and Manufacturing verticals
• Geographic Strength: Europe stood out as a key growth region
• Deal Momentum: Strong large-deal momentum including multiple mega deals
• AI Focus: Management's emphasis on six AI-led value pools as long-term growth drivers
• Market Share Gains: Ability to capture market share despite near-term segment volatility

Market Context

Infosys shares closed at ₹1,609.00 on the NSE, down 0.60% from the previous close. The stock has declined sharply over the past year, leading to normalized valuations closer to long-term averages. Indian stock markets remained closed for trading due to Maharashtra municipal elections, setting up potential strong buying interest when trading resumes.

The improved guidance stands out against the challenging backdrop facing the IT services sector, where companies continue dealing with regulatory and wage-related cost pressures alongside cautious client spending patterns.

Infosys Limited has announced the completion of a merger between two of its wholly owned step-down subsidiaries in Romania. The IT services giant informed stock exchanges about this corporate restructuring development on January 15, 2026.

Merger Details

The merger involved two Romanian entities under the Infosys umbrella. The transaction was completed on January 8, 2026, though the company received official confirmation of the completion on January 14, 2026. The merged entity now operates under the name In-tech Engineering S.R.L.

Regulatory Compliance

The announcement was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Infosys had previously communicated about this merger process in a letter dated December 5, 2025, indicating this was a planned corporate restructuring activity.

The company has notified multiple stock exchanges about this development, including BSE Limited, National Stock Exchange of India Limited, and New York Stock Exchange, ensuring comprehensive disclosure across all relevant trading platforms.

Corporate Structure Impact

The merger consolidates Infosys's Romanian operations under a single entity named In-tech Engineering S.R.L. This restructuring involves step-down subsidiaries, which are subsidiaries of Infosys's direct subsidiaries, representing a streamlining of the company's corporate structure in the Romanian market.

The information has been made available on the company's official website at www.infosys.com , ensuring transparency and accessibility for stakeholders and investors.