Rankings Software, cloud & internet Infosys

Infosys

Software, cloud & internet · United StatesRank 329 of 829Prices 2 Nov 2026Model 1.4

A good business with a real question mark: the price, a crack, or both.

Biggest deductions

  • Segment of the future (AI pressure)−6
  • Quality of growth−5
  • Lowered guidance−3

Strengths

  • Net cash+2
  • Order intake+2
  • Dividend yield+1

How the score is built

From 100 to 66, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.

100Start
66Score

Hover or select a step to see what drove it. Steps with findings open them below.

Key numbers

As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.

Price
12.53 USD
Median analyst target
11.85 USD
Upside to median
−5.4%
Analysts
14
Target range
10.40 – 14.30 USD
52-week change
−24%
P/E (trailing)
14.9
Forward P/E
15.1
PEG
n/a

Findings

Every deduction and every plus, with its source. Open a step to read them.

Business

Is the company getting stronger, not just bigger? · 4 findings
−14 of −30
  • Quality of growth
    Revenue in USD grew only 4% (TTM) and 1.9-4.6% annually since FY24; EPS has gone from 0.70 (FY22) to USD 0.81 - about 4% a year. FY27 guidance is 1.5-3.0% at constant currency.
    −5
  • Margin
    The operating margin has fallen from 23.0% (FY22) to 20.4% (TTM), and the gross margin from 32.6% to 29.7%. Guidance of 20–22% promises no recovery.
    −2
  • Segment of the future (AI pressure)
    AI threatens the hourly-based outsourcing model: customers are shifting towards outcome-based pricing with fewer billable hours (revenue deflation). Indian IT stocks were sold off heavily in February 2026 (INFY ADR -9.4% in one day); AI accounts for only 8.2% of revenue.
    −6
  • Capital allocation
    Dividend (USD 2.45bn) plus buybacks (USD 2.01bn) = USD 4.46bn above FCF of USD 3.80bn; net cash has fallen from USD 3.36bn to USD 2.20bn.
    −1

Price

Today's multiples against the company's own history and its peers. · 2 findings
−3 of −35
  • Multiples vs own history
    P/E 12.9 versus 16.3-35.6 in FY22-FY26; EV/EBITDA 9.1 versus 11.8-25.1; P/FCF 11.3 versus 14.5-34.5. The lowest level in the period, but forward P/E (13.0) is higher than trailing - the market is not counting on EPS growth.
    −1
  • Peers
    Forward P/E 13.0 versus Accenture 14.3, Wipro 11.8 and Cognizant 9.8; EV/EBITDA 9.1 versus 8.9, 8.0 and 6.9. No discount to the sector – the whole industry has been revalued.
    −2

Cracks

Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings
−6 of −35
  • Lowered guidance
    FY27 growth guidance was cut in July from 1.5–3.5% to 1.5–3.0% in constant currency; the stock fell after the report.
    −3
  • Management change
    Ashiss Kumar Dash has been named CEO-designate as successor to Salil Parekh - a leadership change in the middle of the AI transition; the timetable is unclear in the coverage.
    −2
  • Employee exodus
    Employee turnover rose to 13% in Q1 FY27.
    −1

Plus

Only documented strengths. · 3 findings
+5 of +15
  • Net cash
    Net cash of USD 2.2bn (debt 0.9bn against cash 3.1bn); ROIC 42% and FCF at 116% of net income in Q1.
    +2
  • Order intake
    Large deals of USD 3.6bn in Q1 FY27, of which 61% new; diversified customer base across finance, industry, energy, retail, telecom and life sciences.
    +2
  • Dividend yield
    Dividend yield of 4.2% with a payout ratio of 55% of earnings.
    +1

Caveats

What the score does not capture, or where the data is weak.
Traded via ADR (INFY, NYSE); reporting in INR converted to USD. The Q2 FY27 report is not due until Thursday/Friday 23 Oct 2026 (not week 42); the score predates the report, data through 11 Oct 2026. T2 is measured against own history and peers (Accenture, Cognizant, Wipro). PEG is n/a because EPS growth is low.

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