Infosys (NYSE:INFY) Reaches New 1-Year Low After Earnings Miss

Infosys Ltd. (NYSE:INFY) shares reached a new 52-week low during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $10.30 and last traded at $10.4390, with a volume of 6364217 shares changing hands. The stock had previously closed at $10.93.

The technology company reported $0.20 EPS for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.01). Infosys had a return on equity of 33.41% and a net margin of 16.38%.The company had revenue of $4.99 billion for the quarter, compared to the consensus estimate of $5.08 billion.

Infosys News Roundup

Here are the key news stories impacting Infosys this week:

• Positive Sentiment: Infosys highlighted AI revenues at 8.2% of sales, showing continued traction in higher-growth services, while operating margin held firm at 21.1%. Infosys: AI Revenues at 8.2% in Q1; Resilient Operating Margin of 21.1%
• Positive Sentiment: The company reported strong large-deal wins of $3.6 billion and generated robust free cash flow, which supports the longer-term investment case. Infosys: AI Revenues at 8.2% in Q1; Resilient Operating Margin of 21.1%
• Neutral Sentiment: Infosys named Ashiss Kumar Dash as CEO-designate, giving the market a clearer leadership succession plan. India’s Infosys misses quarterly revenue view, names CEO designate
• Negative Sentiment: Q1 earnings and revenue missed estimates, with softer volumes and a client exit offsetting growth in AI services. Infosys Q1 Earnings Miss Estimates, Revenues Increase Y/Y
• Negative Sentiment: Infosys narrowed its FY27 revenue growth outlook to 1.5%-3.0%, signaling a more cautious view on demand and contributing to the stock’s decline. India’s Infosys misses quarterly revenue view, names CEO designate
• Negative Sentiment: Several brokerages cut price targets or turned more cautious after the results, reinforcing concern that near-term upside may be limited. These Analysts Slash Their Forecasts On Infosys After Q1 Results

Wall Street Analyst Weigh In

A number of analysts recently weighed in on INFY shares. TD Cowen reissued a “hold” rating and issued a $9.00 price target (down from $10.00) on shares of Infosys in a report on Friday. Stifel Nicolaus set a $13.00 price objective on Infosys and gave the stock a “hold” rating in a report on Thursday, July 16th. Wells Fargo & Company set a $11.00 price objective on Infosys and gave the company an “equal weight” rating in a research report on Friday, June 26th. Susquehanna lowered their target price on Infosys from $12.00 to $11.00 and set a “neutral” rating for the company in a research note on Friday. Finally, HSBC set a $11.47 target price on Infosys in a research report on Friday. Eight research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $11.63.

Institutional Investors Weigh In On Infosys

Institutional investors and hedge funds have recently modified their holdings of the business. Bessemer Group Inc. lifted its holdings in Infosys by 49.3% in the first quarter. Bessemer Group Inc. now owns 1,720,708 shares of the technology company’s stock valued at $23,248,000 after buying an additional 568,573 shares during the period. XY Capital Ltd acquired a new stake in Infosys during the 1st quarter worth $4,319,000. Trinity Street Asset Management LLP lifted its stake in shares of Infosys by 45.5% in the 1st quarter. Trinity Street Asset Management LLP now owns 14,938,546 shares of the technology company’s stock valued at $201,820,000 after purchasing an additional 4,674,742 shares during the period. Hudson Edge Investment Partners Inc. boosted its position in shares of Infosys by 56.5% in the 1st quarter. Hudson Edge Investment Partners Inc. now owns 4,452,990 shares of the technology company’s stock worth $60,160,000 after purchasing an additional 1,607,300 shares during the last quarter. Finally, ABN Amro Investment Solutions boosted its position in shares of Infosys by 94.2% in the 1st quarter. ABN Amro Investment Solutions now owns 997,028 shares of the technology company’s stock worth $13,470,000 after purchasing an additional 483,700 shares during the last quarter. 16.20% of the stock is owned by institutional investors.

Infosys Stock Performance

The company has a 50-day moving average price of $11.62 and a 200-day moving average price of $13.71. The firm has a market capitalization of $45.03 billion, a P/E ratio of 13.74, a price-to-earnings-growth ratio of 1.40 and a beta of 0.90.

About Infosys

Infosys Ltd. is a digital services and consulting company, which engages in the provision of end-to-end business solutions. It operates through the following segments: Financial Services, Retail, Communication, Energy, Utilities, Resources, and Services, Manufacturing, Hi-Tech, Life Sciences, and All Other. The company was founded by Dinesh Krishnan Swamy, Senapathy Gopalakrishnan, Narayana Ramarao Nagavara Murthy, Raghavan N. S., Ashok Arora, Nandan M. Nilekani, and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.