Infosys Share Price Jumps 5%: Why the IT Stock Is Rising Today

Shares of Infosys climbed nearly 5% in early trade on Friday after the IT major delivered a better-than-expected performance in the December quarter and surprised markets with an upward revision in its revenue growth guidance for FY26.

The rally reflects renewed investor confidence in India’s second-largest IT services firm at a time when global technology spending remains selective and cautious.

How Infosys Stock Performed Today

Infosys shares were trading around Rs 1,667 by mid-morning, rising nearly Rs 69 from the previous close of Rs 1,599. The stock opened firmly in the green and maintained buying momentum through the session, supported by strong institutional interest.

The sharp move in Infosys also lifted sentiment across the IT sector, with investors reacting positively to signs of stabilising demand and improving deal visibility.

Q3 FY26 Results Beat Expectations

The primary trigger behind the rally was Infosys’ Q3 FY26 earnings, which exceeded Street expectations on key operational metrics.

The company reported constant currency revenue growth of 0.6% quarter-on-quarter, outperforming market estimates that had largely pencilled in flat growth. This improvement came despite a challenging global macro environment and lingering caution in discretionary technology spending.

More importantly, Infosys raised its FY26 constant currency revenue growth guidance to 3–3.5%, up from the earlier 2–3% range. The guidance upgrade was unexpected and signalled that demand conditions are showing early signs of recovery.

Management indicated steady discretionary spending and renewed traction in its core financial services (BFSI) vertical, which continues to be a key growth driver.

$4.8 Billion Deal Wins Boost Confidence

Another major factor supporting the stock was Infosys’ strong deal momentum during the quarter.

The company reported total contract value (TCV) of $4.8 billion, a sharp jump from $3.1 billion in the previous quarter. Around 57% of these deals were net new, indicating fresh client additions rather than renewals.

A significant contributor to the deal pipeline was a large contract win from NHS UK, reinforcing confidence in Infosys’ execution capabilities and long-term growth visibility.

Markets often view strong deal inflows as a leading indicator of future revenue growth, which played a key role in driving buying interest.

Headcount Rises to 11-Quarter High

Infosys also reported its highest headcount in 11 quarters, adding 11,246 employees over the last two quarters. The increase in hiring signals management’s confidence in future demand and project execution.

In a sector that has seen muted hiring for several quarters, rising headcount is often interpreted as a positive forward-looking indicator.

Margins Hold Steady Despite One-Time Cost

On the profitability front, Infosys delivered stable operating performance.

• Adjusted EBIT margin: 21.2% (in line with estimates)

• Reported EBIT margin: 18.4%

The company disclosed a one-time labour code-related cost of Rs 1,289 crore, which weighed on reported margins.

Net profit declined 9.7% year-on-year to Rs 6,654 crore, compared with Rs 7,365 crore in the same quarter last year. However, investors largely looked past the profit decline, focusing instead on revenue growth, deal momentum and improved guidance.

US-Listed Shares Signal Strong Global Sentiment

Infosys’ US-listed ADRs jumped over 10% following the earnings announcement, providing a strong cue for domestic markets. The positive overseas reaction further reinforced bullish sentiment around the stock in Indian trading hours.

What Analysts Are Saying

Brokerages largely maintained their positive stance on Infosys after the results.

Several analysts highlighted early signs of discretionary demand recovery and improved growth visibility. Target prices issued by brokerages currently range between Rs 1,750 and Rs 1,810, suggesting further upside potential from recent levels.

Bottom Line

Infosys’ sharp rise today is driven by a combination of better-than-expected Q3 results, a surprise guidance upgrade, strong deal wins, rising headcount and steady margins. While near-term volatility cannot be ruled out after the sharp move, the results have strengthened confidence in the company’s medium-term growth outlook.