Rankings Software, cloud & internet Infosys
Infosys
66
15070100
A view of the same findings, not a new score. How it works
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.
Start
Score
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
- −5Quality of growthRevenue 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.
- −2MarginThe 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.
- −6Segment 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.
- −1Capital allocationDividend (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.
Price
Today's multiples against the company's own history and its peers. · 2 findings−3 of −35
- −1Multiples vs own historyP/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.
- −2PeersForward 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.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−6 of −35
- −3Lowered guidanceFY27 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.
- −2Management changeAshiss 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.
- −1
Plus
Only documented strengths. · 3 findings+5 of +15
- +2Net cashNet cash of USD 2.2bn (debt 0.9bn against cash 3.1bn); ROIC 42% and FCF at 116% of net income in Q1.
- +2Order intakeLarge deals of USD 3.6bn in Q1 FY27, of which 61% new; diversified customer base across finance, industry, energy, retail, telecom and life sciences.
- +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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