Shares of Indian IT giant Infosys Ltd. (NYSE: INFY) jumped as much as 4% on Friday, marking their best intraday gains in four months, after the company unexpectedly raised its revenue guidance for fiscal 2026. Analysts said the firm is well-positioned to capture market share through stronger artificial intelligence (AI) partnerships and deeper engagement with clients.
The stock outperformed the benchmark Nifty 50 Index, which remained largely flat, and snapped a four-day losing streak on Wednesday with a 10.45% jump, closing at $19.35 per share. Investors welcomed the higher revenue outlook, which came alongside an investment firm’s price target upgrade for the stock.
In its earnings call, Infosys raised its full-year fiscal 2026 revenue guidance to a range of 3–3.5%, while projecting an operating margin of 20–22%. This revision followed the company’s third-quarter results, which showed revenues of $5.099 billion, up 3.2% from $4.939 billion a year earlier. Nine-month revenues grew 4% to $15.1 billion from $14.5 billion in the prior year.
However, net income attributable to shareholders fell 7% year-on-year to $747 million from $804 million, while nine-month net income rose modestly by 2% to $2.39 billion from $2.34 billion.
CEO Salil Parekh highlighted the company’s progress in AI and client engagement. “Infosys delivered a strong Q3 performance demonstrating how our differentiated value propositions in enterprise AI, through Infosys Topaz, are consistently driving higher market share. Clients increasingly view Infosys as their AI partner with demonstrated expertise, innovation capabilities, and strong delivery credentials,” he said. “This has helped them unlock business potential and enhanced value realization.”
Parekh also stressed the importance of human capital in an AI-driven environment. “Central to this journey is our commitment to reskill, transform, and empower our dedicated human resource pool to drive success in an AI-augmented world,” he added.
Following the results, Goldman Sachs raised its price target on Infosys shares by 1%, to $19.10 from $18.90. The firm acknowledged the company’s potential as an investment but noted that some AI stocks may offer higher returns with lower downside risk.
The updated guidance comes after a period of muted demand for Indian IT services, particularly in the US and Europe, as the post-pandemic surge faded. Elevated interest rates, inflation, and geopolitical tensions have constrained corporate technology budgets, prompting companies like Infosys to lean more heavily on AI and cloud services for growth.
For the December quarter, Infosys reported revenue of 454.79 billion rupees, up 8.9%, while net income declined 2.3% to 66.54 billion rupees, partly reflecting the impact of India’s new labor codes. The company also added 5,043 employees sequentially during the quarter, signaling improving demand visibility.
Looking ahead, Infosys said it continues to serve US clients through a blend of local hiring and offshore delivery, preparing for potential disruptions from changes to the H-1B visa regime. Parekh noted that approximately 90% of the company’s largest 200 clients are now engaged in AI-driven initiatives, which are expected to contribute meaningfully to growth in the coming years.
He also indicated that Infosys could consider acquisitions as larger AI services specialists emerge, potentially bolstering its position as global demand for AI-led IT services expands. Analysts said this strategy positions Infosys to benefit from the ongoing transformation of enterprise technology, reinforcing its role as a key player in the global IT services sector.
