Shares of Infosys (INFY) slumped by over 6% during intraday trading on Friday, April 24, 2026, hitting a low of ₹1,163 on the NSE. While the company reported a robust 21% jump in net profit, the market was spooked by a conservative growth outlook and several underlying operational red flags.
1. The “Guidance Miss”: Why the Market Reacted
The primary driver of the sell-off was the revenue growth guidance for the new fiscal year (FY27), which fell significantly short of what analysts were expecting.
- FY27 Revenue Guidance: Projected at 1.5%–3.5% in constant currency.
- The Gap: The market had anticipated a more aggressive range of 4%–7% or higher, hoping for a faster recovery in the IT sector.
- The “Floor” Strategy: While management often starts with conservative guidance and raises it later, investors interpreted this range as a sign that the macroeconomic environment for IT spending remains cold, particularly in the U.S. and Europe.
2. Q4 FY26: The Numbers Under the Surface
Despite the headline “beat” on profit, the deeper metrics suggested a “soft” quarter that justified the price correction.
| Metric | Q4 FY26 Actual | Status |
| Net Profit | ₹8,501 Crore | Up 21% YoY (Beat) |
| Revenue | ₹46,402 Crore | Up 13.4% YoY |
| Operating Margin | 21% | Unchanged YoY |
| New Deal Wins | $1.3 Billion | Down 19% YoY (Significant Miss) |
| Headcount | -8,440 | Quarterly decline in total staff |
- Deal Win Slowdown: The 19% drop in net new deal wins compared to the previous year raised concerns about the strength of the future revenue pipeline.
- Contraction in Workforce: A reduction of over 8,000 employees in a single quarter signaled that Infosys is prioritizing cost-cutting and efficiency over rapid expansion.
3. Segment and Regional Laggards
The stock was also weighed down by weak performance in specific areas that traditionally drive high margins.
- Hi-Tech Segment: Revenue fell 1.5%, reflecting a continued freeze in discretionary spending by major tech companies.
- Domestic Market: Revenue from India saw a sharp 5.2% decline, contrasting with growth in Europe (+11.4%).
- AI Compression: Analysts from firms like Morgan Stanley and Jefferies noted that while AI is a long-term opportunity, it is currently causing “compression” in core business segments as productivity gains are passed on to clients rather than adding to the bottom line.
4. Analyst and Brokerage Reaction
Leading global and domestic brokerages quickly adjusted their targets following the results.
- Jefferies: Maintained Hold and cut the target price to ₹1,235, citing a worsening macro environment.
- Morgan Stanley: Maintained Equal-weight but slashed its target from ₹1,760 to ₹1,380, highlighting misses across key metrics.
- Dividend Cushion: One of the few bright spots was the announcement of a ₹25 per share final dividend, which helped provide a minor floor to the stock’s freefall.