Infosys Ltd - ADR

Infosys Ltd - ADR

INFY

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Market Cap$48.81B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Infosys Ltd - ADRInfosys Ltd - ADR14.44.25%35%30.2

Earnings Call Q1 2027

July 23, 2026 - AI Summary

CEO transition announced (surprising / strategically important): - Board will appoint Ashish Dash (internal candidate) as CEO Designate; he will take over with an internal transition plan. - Salil Parekh’s tenure ends March 31, 2027; Dash to receive coaching over ~2–3 months and then mentor under Salil for ~6 months. - Leadership messaging emphasizes AI readiness (Dash’s technical background + long Infosys operating history) and smooth continuity.
Q1 FY’27 performance: modest topline but AI momentum strong (good, with a negative one-off): - Revenue growth: +2.4% YoY and +1.0% QoQ (constant currency). - Operating margin: 21.1% (and guided range held; see below). - AI revenues: 8.2% of total revenue, growing double-digit QoQ for multiple quarters → management calls this a growth engine. - Large deals: $3.6B total with 61% net new (high confidence in demand quality), including three deals at ~$400M each. - Free cash flow: $955M (~16.5% of net profit). - Negative driver in Q1: revenue growth below expectations due to (i) ~50 bps one-time impact from a client terminating a program, (ii) softer volumes vs expectations, and (iii) weaker net pricing from competitive intensity and client productivity expectations.
Guidance cut / outlook: growth reset but margin stance maintained (bad / mixed): - Management revised revenue guidance to +1.5% to +3.0% YoY growth (constant currency). - Operating margin guidance maintained at 20%–22% despite expected headwinds. - Rationale for the reset includes: - continued soft volumes and pricing pressure (not as much as initially expected), - macro uncertainty, longer decision cycles, - client productivity/pass-through dynamics, - site mix shift guidance: on-site mix excluding acquisitions expected to fall by ~0.75%–1% for the year, - additional >1% impact from European manufacturing client reductions and selective deal avoidance where returns didn’t meet expectations.

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$12.56

Target Price by Analysts

4.4% upsideInfosys Target Price DetailsTarget Price
$35.30

Current Fair Value

193.4% upside

Undervalued by 193.4% based on the discounted cash flow analysis.

Share Statistics

Market cap$48.81 Billion
Enterprise Value$48.31 Billion
Dividend Yield$0.52 (4.25%)
Earnings per Share$0.83
Beta0.13
Outstanding Shares4,095,000,000

Return

Return on Equity34.56%ROE
Return on Assets20.32%
Return on Invested Capital40.53%

Valuation & Multiples

P/E Ratio14.45P/E Ratio
PEG1129.25PEG
Price to Sales3.01Price to Sales
Price to Book Ratio6.02Price to Book Ratio
Enterprise Value to Revenue2.38
Enterprise Value to EBIT11.07
Enterprise Value to Net Income14
Total Debt to Enterprise0.04
Debt to Equity0.19Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
July 23, 2026
EPS Estimate
$0.21
Average shareholder expectation
Revenue Estimate
$5.08 B
Average shareholder expectation

Next Earnings Call

Expected Date
October 15, 2026
EPS Estimate
$0.21
Average shareholder expectation
Revenue Estimate
$5.17 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.0000▼ 388.45%
Total Calls-▼ 100.00%
Total Puts-▼ 100.00%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %1.74%▼ 9.38%
Total Invested$729.83M▼ 88.18%
Investors Holding80▼ 396.00%

ESG Score

No data

About Infosys Ltd

CEO: Salil Parekh

Relevant Senate Committees

Finance

Controls taxation (impacting Infosys's global profitability), trade policy (affecting global operations), and influences major client sectors like healthcare and retail through policy.

Appropriations

Directly allocates federal spending across all agencies, determining funding for IT projects and significantly impacting government contractor order books for firms like Infosys.

Health, Education, Labor, and Pensions

Regulates significant client sectors (healthcare/biotech) and, crucially, labor laws that directly impact a global IT services firm's workforce and operational costs.

Judiciary

Oversees antitrust laws (affecting M&A in tech), intellectual property, and often immigration policies (critical for IT services workforce), all highly relevant to Infosys.

Armed Services

Directly oversees the Department of Defense, a significant client for IT and cybersecurity services, with its spending authorizations (NDAA) directly impacting revenue streams.

Banking, Housing, and Urban Affairs

Directly regulates the financial services industry, a major client sector for Infosys, impacting their need for IT solutions, regulatory compliance, and digital transformation.

Commerce, Science, and Transportation

Directly impacts 'Big Tech' through privacy, data, and telecommunications regulations, which are central to IT services operations and client solutions for Infosys.

Homeland Security and Governmental Affairs

Directly impacts federal contracting for IT services and consulting, and emerging AI regulations could significantly affect Infosys's offerings and government client base.