Key Points
- Infosys raised its FY26 revenue growth forecast to 3%–3.5%, up from 2%–3%, on stronger AI-linked demand.
- The company’s shares climbed about 5%, leading gains in India’s IT sector and boosting market indices.
- A robust pipeline of large deals and improved technology spending helped underpin the outlook upgrade.
Shares of Indian IT giant Infosys climbed sharply after the company raised its fiscal 2026 revenue growth forecast, signalling renewed investor confidence and stronger demand momentum. The stock surge helped lift the Nifty IT index, becoming the best performer among major Indian equities as traders responded to the upbeat outlook.
Infosys now expects 3%–3.5% revenue growth for the fiscal year ending March 2026, up from its earlier guidance of 2%–3%, reflecting stronger client spending and a robust pipeline of large contracts, particularly in artificial intelligence (AI) and digital services. Analysts said the upgraded forecast underscores the company’s ability to capitalise as enterprises worldwide increase tech and AI investments.
The stock jumped as much as 5% on the announcement, its largest intraday gain in months, and helped drive broader gains in the Indian share market as domestic benchmarks rose. Market watchers noted that demand for Infosys’s services — especially in financial services and other sectors where AI adoption is accelerating — has improved after a period of cautious discretionary spending.
Infosys reported third-quarter results that beat some analyst expectations, with revenue rising and a strong pipeline of large deals over $50 million. The company’s AI-related partnerships and digital transformation offerings, along with growth in core services, boosted confidence in its outlook.
Investors have been watching for signs that India’s IT sector — a major contributor to the national services export economy — is turning a corner after a slowdown in tech spending during prior years. Infosys’s raised guidance, coupled with positive signals from peers, suggests cautious optimism that demand may be stabilising.
The stronger forecast also helped trigger broader buying interest across other IT stocks, lifting the Nifty 50 and Sensex indexes. Analysts said this trend reflects renewed confidence in growth opportunities as global firms invest in digital and AI-linked services amid ongoing technological transformation.
