Infosys is back in the spotlight after brokerage major Motilal Oswal reaffirmed its ‘BUY’ rating on the IT heavyweight and set a target price of ₹2,200, implying a potential upside of nearly 37% from current levels. Backed by improving guidance, strong deal wins, and stable margins, Infosys has emerged as Motilal Oswal’s top pick among Tier-1 IT companies.
Here’s a fully original, SEO-optimized, human-written analysis of why Infosys is gaining broker confidence and what investors should know.
Motilal Oswal Reiterates BUY on Infosys
According to Motilal Oswal’s latest research note, Infosys delivered a better-than-expected performance in Q3 FY26, strengthening the brokerage’s conviction in the stock. The firm believes Infosys is well-positioned to benefit from improving demand visibility and execution strength across large deals.
The brokerage’s ₹2,200 target reflects confidence in Infosys’ long-term earnings growth and premium positioning within the Indian IT sector.
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Infosys Q3 FY26 Performance Beats Estimates
Infosys reported $5.1 billion in revenue during Q3 FY26, marking 0.6% quarter-on-quarter and 1.7% year-on-year growth in constant currency terms. This performance exceeded Motilal Oswal’s expectations, indicating resilience despite a challenging global IT spending environment.
Infosys Q3 FY26 Key Financials
| Metric | Q3 FY26 Performance |
|---|---|
| Revenue | $5.1 billion |
| Revenue Growth (QoQ) | 0.6% |
| Revenue Growth (YoY, CC) | 1.7% |
| Adjusted EBIT Margin | 21.2% |
| Adjusted EBIT | ₹96 billion |
| Adjusted PAT | ₹76 billion |
Margins and Profitability Remain Strong
Infosys’ adjusted EBIT margin of 21.2% came in line with expectations, reflecting disciplined cost control. Adjusted EBIT rose 3.1% QoQ and 8.2% YoY, while adjusted PAT increased 3.5% QoQ and 12% YoY, beating estimates.
Notably, these figures exclude the one-time impact of ₹12.8 billion related to new labour codes, underlining the company’s strong underlying profitability.
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Guidance Upgrade Signals Growing Confidence
A major positive takeaway was the upgrade in FY26 revenue guidance. Infosys raised its constant currency revenue growth forecast to 3–3.5%, up from the earlier 2–3% range.
For Q4 FY26, management now expects revenue growth to remain flat, an improvement from the earlier guidance of a 1% decline, pointing to stabilising demand conditions.
Deal Pipeline Strengthens Growth Visibility
Infosys’ deal momentum remained strong in Q3 FY26, with large deal TCV at $4.8 billion, up 55% QoQ. Net new TCV also grew 32% QoQ, reinforcing confidence in future revenue growth.
While the book-to-bill ratio stood at 0.9x, Motilal Oswal believes the strong deal pipeline will support growth over the medium term.
Outlook: What Lies Ahead for Infosys?
For the first nine months of FY26, Infosys recorded solid year-on-year growth across key metrics. Looking ahead to Q4 FY26, Motilal Oswal expects:
- Revenue growth of 12.2% YoY
- EBIT growth of 14% YoY
- PAT growth of 9.4% YoY
The brokerage values Infosys at 26x FY28E EPS, citing strong execution, improved guidance, and sustained deal wins as key drivers.
Should You Buy Infosys Now?
Motilal Oswal’s bullish stance suggests Infosys remains well-placed for long-term investors seeking stability and steady growth in the IT sector. With guidance upgrades and a strengthening deal pipeline, the brokerage believes the stock has room to move higher despite near-term global uncertainties.
Final Takeaway
Infosys’ Q3 FY26 performance, combined with improved guidance and strong deal momentum, has reinforced its status as a top-tier IT investment. With a ₹2,200 target price and 37% upside potential, Infosys continues to stand out as a compelling stock to buy for investors with a medium-to-long-term horizon
