Buy or sell Infosys stock after Q2 earnings miss, guidance cut? UBS sees 23% upside, HSBC flags margin pressure
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Infosys reported a 6.2 percent rise in net profit for the July-September quarter, but its performance fell short of expectations.
- ✓Brokerages gave mixed views after the company cut its FY27 revenue growth guidance.
- ✓UBS said it sees 23 percent upside, while HSBC flagged margin pressure from upcoming wage hikes.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Moneycontrol.com
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
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Brokerages UBS and HSBC have offered contrasting outlooks on Infosys following its weaker-than-expected fiscal second quarter results and another reduction in its FY27 revenue growth guidance. While UBS maintained its Buy rating with a target price of Rs 1,415, implying an upside of around 23 percent, HSBC retained its Hold rating and cautioned that wage hikes could put further pressure on operating margins.
Infosys reported a 6.2 percent year-on-year rise in net profit and 10.7 percent revenue growth for July-September quarter, but its operating performance fell short of expectations. The company also lowered its FY27 constant-currency revenue growth guidance to 1-2 percent from 1.5-3 percent, marking its weakest annual growth forecast in seven years. The company maintained its operating margin forecast of 20-22 percent.
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