Infosys Shares Rally After Q3 FY26 Results: Should Investors Buy at Current Levels?

Shares of Infosys witnessed a sharp rally on Dalal Street after the IT major announced its Q3 FY26 earnings, lifting broader market sentiment and helping benchmark indices snap their recent losing streak.

The stock surged more than 5% in early trade, reflecting investor optimism around better-than-expected performance and an upward revision in revenue guidance at a time when global tech spending remains uneven.

How Infosys Stock Performed

Infosys opened the session at Rs 1,670.30, touched an intraday high of Rs 1,683.45, and slipped to a low of Rs 1,654.55 before stabilising. The stock was trading near Rs 1,681.55, up Rs 82.50 or 5.16% from its previous close of Rs 1,599.05.

• 52-week high: Rs 1,967.75

• 52-week low: Rs 1,307.10

The rally in Infosys also triggered buying interest across the IT pack, aiding gains in broader indices.

What Triggered the Sharp Rally

The key catalyst behind the surge was Infosys’ Q3 FY26 performance coupled with a guidance upgrade, which came as a positive surprise for the Street.

The company reported constant currency revenue growth of 0.6% quarter-on-quarter, beating market expectations. More importantly, Infosys raised its FY26 constant currency revenue growth guidance to 3–3.5%, up from the earlier 2–3% range.

Management highlighted improving momentum in discretionary tech spending and resilience in the BFSI (banking, financial services and insurance) segment, which accounts for a significant portion of Infosys’ revenues.

Strong Deal Wins Improve Visibility

Another major positive was Infosys’ robust deal pipeline. The company reported $4.8 billion in total contract value from 26 deals during Q3 FY26, a sharp increase from $3.1 billion in the previous quarter.

Notably, 57% of these deals were net new, signalling fresh demand rather than mere renewals. Strong deal wins are often viewed as early indicators of revenue momentum, and this played a crucial role in driving buying interest in the stock.

Brokerages Turn Optimistic

Post-results, several brokerages reiterated positive views on Infosys, citing better growth visibility and strategic positioning.

Some analysts highlighted Infosys’ increasing focus on AI-led services, including AI engineering, data platforms, AI agents for operations, legacy modernisation, and AI-powered software development. This focus is expected to help the company gain market share as enterprises accelerate AI adoption.

Brokerage targets for Infosys now range between Rs 1,750 and Rs 1,900, implying potential upside from recent levels. Analysts also expect stronger growth traction in FY27, driven by Energy & Utilities and a recovery in discretionary spending.

Should You Buy Infosys Stock Now?

While the fundamentals appear to be improving, investors should note that Infosys has already delivered a sharp move in a short span. Buying aggressively at elevated levels could expose portfolios to near-term volatility, especially amid global uncertainty around interest rates and tech budgets.

For long-term investors, the guidance upgrade, strong deal pipeline and improving demand outlook offer comfort. However, market experts generally advise staggered buying or accumulating on dips, rather than chasing the rally.

Short-term traders may also see profit booking if broader markets turn volatile, making patience a key strategy at current levels.

As always, investment decisions should be aligned with individual risk appetite and time horizon rather than short-term price action.