Bernstein Sees Infosys as Gen AI Leader, Highlights Robust Q1 Results and Attractive Valuations
Bernstein maintains its outperform view on Infosys, setting a target price of ₹1,820 per share and underscoring the company's status as an emerging growth leader, especially in the context of generative AI capabilities among large peers. The brokerage's endorsement follows Infosys's operational outperformance in Q1FY26, marked by a solid beat on revenue, margin, and order book metrics
Infosys's revenue for the quarter surpassed peer performances and internal estimates, buoyed by high-value, high-frequency deal wins and a visible ramp-up in digital transformation mandates from global clients. Management further narrowed full-year revenue growth guidance to the 1–3% range, reflecting a prudent outlook grounded in reality, while maintaining margin guidance at 20–22%. The standout figure remains the large deal total contract value, which surged to $3.8 billion, a testament to client trust and Infosys's competitive capabilities.
Bernstein's report calls particular attention to Infosys's best-in-class AI and digital infrastructure, with management positioning the company at the forefront of Gen AI implementations and partnerships. With valuations now approaching 20x FY27 estimated earnings, Bernstein argues that the stock's risk-reward is compelling relative to both domestic and global peers. The brokerage's narrative frames Infosys as not just a sector heavyweight, but a company rapidly climbing the value chain—leveraging a comprehensive services portfolio, disciplined margin management, and a distinctive edge in digital and AI. For investors, Bernstein believes Infosys offers near-term growth, medium-term earnings stability, and long-term leadership in the next era of technology services
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