Infosys stock to open higher on Friday? ADR jumps 10%; FY26 guidance raised

Infosys ADRs surged 10.2 per cent in New York on Wednesday after the company raised its revenue growth guidance for FY26 to 3-3.5 per cent from 2-3 per cent earlier

Shares of Infosys, information technology (IT) services major, are expected to witness a strong start on Friday, January 16, 2026, following a sharp 10 per cent rally in its American Depository Receipts (ADR) and largely upbeat commentary from analysts following the company’s December 2025 quarter (Q3FY26) results. Market participants expect sentiment to remain positive after the IT major raised its FY26 revenue growth guidance and reported robust deal wins, even as headline profit dipped due to one-off regulatory costs.

 

G Chokalingam, founder of Equinomics Research, said investor reaction to Infosys is likely to be “very positive,” citing high single-digit growth in revenue and profit before exceptional charges, a sharp sequential jump in total contract value, and improving margins. 

 

 

He added that higher guidance and strong traction among top clients on AI-led initiatives position Infosys as one of the best large-cap IT stocks, which the market is likely to reward.

 

Ravi Singh, chief research officer at Mastertrust, said the numbers indicate that client demand remains intact. From a technical perspective, Singh noted on the chart, Infosys has cooled off after the recent rally and is now trading around 1,600. The stock is holding above the 1,560–1,570 support zone, which is important in the near term. 

 

"As long as this level is protected, the structure remains stable. On the upside, ₹1,650–1,680 acts as immediate resistance. Overall, this phase looks like consolidation after a good move, not a breakdown," Singh said.

Infosys ADR rally in New York

Infosys ADRs surged 10.2 per cent in New York on Wednesday, January 14, 2026, after the company raised its revenue growth guidance for FY26 to 3–3.5 per cent from 2–3 per cent earlier. The company also maintained its operating margin guidance at 20–22 per cent, which reassured investors amid an uncertain global macro environment. The ADR rally is also expected to have a direct bearing on sentiment for the stock in Indian markets.  ALSO READ | No Infosys employee apprehended by US authorities: CEO Salil Parekh

Infosys Q3 results highlights

In the Q3FY26, Infosys reported a 2.2 per cent decline in its consolidated net profit to ₹6,666 crore against ₹6,822 crore in the year-ago period due to the impact of the government-imposed Labour Code norms. However, the company's Profit before tax & exceptional expenses (PBT&E) grew by 8.8 per cent year-on-year (Y-o-Y).

 

According to the company's financial statements, the financial impact from the Labour Codes stood at ₹1,289 crore in the Q3FY26. The IT major's revenue from core operations rose around 9 per cent to ₹45,479 crore, compared to ₹41,764 crore in the year-ago period. 

 

Additionally, the company's voluntary attrition rate was at 12.3 per cent in the reported quarter, down 140 basis points from 13.7 per cent in the year-ago period. 

 

Large order bookings, or deals over $30 million, stood at $4.8 billion during the quarter, compared to $3.1 billion in the previous quarter and $2.5 billion in the year-ago period.

 

Chokalingam also highlighted that Infosys added over 5,000 employees at a time when several peers are witnessing headcount reductions, which he views as a sign of confidence in future demand.  ALSO READ | Nomura bets on United Spirits as India's alcohol industry turns premium

Here's what the brokerages are saying

Analysts at Nomura expect margins to remain largely stable at around 20.9 per cent in FY26, within the company’s guided range of 20–22 per cent. The brokerage reiterated Infosys as its top pick in the large-cap IT space, citing stable earnings expectations and sustained revenue growth visibility. Nomura maintained its Buy rating on Infosys shares with an unchanged target price of ₹1,810.

 

According to Emkay Global, Infosys reported a mixed Q3 performance, with revenue coming in ahead of estimates but margins falling short. The brokerage pointed out that large deal momentum remained strong, with total contract value of $4.8 billion in Q3, of which 57 per cent was net new. 

 

The company management expects BFSI and European services to see faster growth in FY27, supported by healthy deal wins and Infosys’ AI partner status with 15 of the top 25 clients in these segments.

 

Emkay Global noted that Infosys has raised its FY26 revenue growth guidance to 3–3.5 per cent in constant currency terms, while retaining its margin guidance of 20–22 per cent, excluding the impact of new labour codes. The brokerage maintained its Buy rating on the Infy stock with a target price of ₹1,750.  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.