Strong Infosys Q1 Results, FY26 Guidance Raise: Should you buy, sell or hold IT stock now?

Infosys Q1 FY26 Results Review, Guidance Raise: Infosys beat analysts' expectations with its financial results. In the Q1 earnings season so far, it is the only Tier 1 IT firm to have registered sequential growth in revenue. Brokerages have largely positive views on the country's second-largest IT firm.

Read on to learn about the Bengaluru-headquartered software exporter's latest earnings report and how analysts are reading it. 

How brokerages view Infosys Q1 results, FY26 guidance

JPMorgan maintained its 'overweight' rating on Infosys after the IT firm's earnings announcement, maintaining its target price at Rs 1,900 per share. At Wednesday's closing price, the brokerage's target indicates an upside of 20.7 per cent in the stock. 

Jefferies retained its 'buy' rating while raising its target for Infosys shares by Rs 200 to Rs 1,860. 

According to Bernstein, the IT firm delivered a solid quarterly performance, beating its revenue and order book estimates. The brokerage kept its 'outperform' rating for Infosys while raising its target price to Rs 1,820 from Rs 1,760. 

Morgan Stanley found Infosys's results to be "more balanced" than its peers, maintaining an 'equal-weight' rating and raising its target for the largecap IT stock by Rs 30 to Rs 1,700. 

On the other hand, Macquarie kept its 'neutral' target on Infosys with a target of Rs 1,490, indicating a downside of 5.4 per cent from the market price. 

Infosys Q1 FY26 Results | A summary and guidance raise

After market hours on Wednesday, Infosys reported a 1.6 per cent decline in net profit to Rs 6,921 crore with 3.3 per cent growth in revenue to Rs 42,279 crore on a quarter-on-quarter basis for the April-June period. 

Its EBIT increased 2.7 per cent sequentially and margin came in at 20.8 per cent, according to a regulatory filing. 

According to Zee Business research, Infosys was estimated to register a net profit of Rs 6,604 crore and revenue of Rs 41,990. 

The IT major revised its FY26 revenue guidance to 1-3 per cent from 0-3 per cent in constant currency terms, while maintaining its margin guidance at 20-22 per cent.