Infosys share drops 4% to Rs 1,107 as brokerages split on guidance cut
By Rohit SharmaMarkets Analyst, Peepals Business
Representative image: nattanan23 / Pixabay
Infosys shares fell up to about 4% to an intraday low of Rs 1,107 on NSE on October 26, 2026, after the IT firm cut its FY27 revenue growth guidance to 1-2%.
What Happened
Shares of the IT services company Infosys fell by up to about 4% in morning trade on Monday, 26 October 2026, the first session after the company lowered its revenue growth forecast for the year. On the National Stock Exchange (NSE), the stock touched an intraday low of Rs 1,107, against its previous close of Rs 1,153.80. Infosys now expects revenue growth of 1% to 2% in constant currency for 2026-27, down from its earlier range of 1.5% to 3%, citing a challenging demand environment.
Key Facts
- Intraday low on NSE on 26 October: Rs 1,107, down from a previous close of Rs 1,153.80, a fall of about 4%.
- New FY27 guidance: revenue growth of 1% to 2% in constant currency, cut from 1.5% to 3%.
- Reason given by the company: a challenging demand environment.
- Nomura kept a Buy rating with a target price of Rs 1,300.
- Goldman Sachs kept a Neutral rating with a target price of Rs 1,000.
- Morgan Stanley kept an Equal-Weight rating but raised its target price to Rs 1,075 from Rs 976.
- Motilal Oswal kept a Buy rating, while Emkay trimmed its earnings-per-share estimates for FY27 to FY29.
- Infosys shares were about 31% lower so far this year before Monday's fall, according to one report, amid a selloff in IT services stocks.
Why It Matters
Guidance is a company's own forecast of how fast it expects to grow, and for Indian IT companies it is one of the most closely watched numbers, because their revenue depends on how much clients in the US and Europe spend on technology services. "Constant currency" means the figure strips out the effect of exchange-rate changes, so it shows growth in actual business. When Infosys cuts that range, investors read it as a sign that clients are holding back on new projects.
The cut is modest in size, but the new range of 1% to 2% is low for a company of Infosys's scale, and it comes at a time when investors are already worried about the effect of artificial intelligence on traditional IT services. Reports describe a selloff in the sector this year on fears of AI-led deflation, meaning that AI tools could let clients get the same work done for less money, shrinking the pool of billable work.
The split among brokerages shows how differently analysts read the same numbers. Nomura's target of Rs 1,300 is well above the current price, while Goldman Sachs's target of Rs 1,000 is below it. Morgan Stanley raised its target even as it kept a neutral stance. These are the firms' own views and targets, not forecasts of where the stock will go.
| Brokerage | Rating | Target price |
|---|---|---|
| Nomura | Buy | Rs 1,300 |
| Goldman Sachs | Neutral | Rs 1,000 |
| Morgan Stanley | Equal-Weight | Rs 1,075 (from Rs 976) |
| Motilal Oswal | Buy | Not stated in reports |
Impact
Short-term: The fall weighs on sentiment towards IT stocks. Traders will watch whether the stock holds near its intraday low or recovers by the close.
Long-term: Lower guidance may lead analysts to cut earnings estimates further, as Emkay has done. Investors will look for signs of a pick-up in deal wins and client spending, and for how Infosys uses AI in its own services, before changing their view of the sector.
Who is affected: Infosys shareholders, including mutual funds and retail investors; employees, for whom slower growth can mean cautious hiring; and investors in other IT companies, whose shares often move with Infosys.
Key Takeaway
Infosys shares fell about 4% on 26 October after the company cut its FY27 growth forecast to 1% to 2%, with brokerages divided on what comes next.
Questions and Answers
Why did the Infosys share price fall on 26 October 2026?
The stock fell up to about 4%, to an intraday low of Rs 1,107 on the NSE, because Infosys cut its 2026-27 revenue growth guidance to 1% to 2% in constant currency, from 1.5% to 3%, citing a challenging demand environment.
What is constant-currency growth?
It is revenue growth calculated as if exchange rates had not changed, so it shows how much the business itself grew without the effect of currency movements.
What are brokerages saying about Infosys shares?
Views differ. Nomura kept a Buy rating with a Rs 1,300 target, Goldman Sachs stayed Neutral with a Rs 1,000 target, and Morgan Stanley kept Equal-Weight while raising its target to Rs 1,075. These are the firms' views, not advice.
Is the fall only about Infosys?
Partly. The guidance cut is specific to Infosys, but IT services stocks have been under pressure this year over worries that AI could reduce spending on traditional IT work.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Rohit Sharma, Markets AnalystCovers Markets Watch and more for Peepals Business. All stories by Rohit Sharma
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Rohit Sharma is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
