On the Road w/ INFY; Choppy Macro & AI Deflation Now, Future Value Pools Later

Research evidence excerpt

On the Road w/ INFY; Choppy Macro & AI Deflation Now, Future Value Pools Later

TD Cowen Infosys Technologies Ltd (ADR)

Global Research May 15, 2026

AT A GLANCE

Our Investment Thesis Forthcoming Catalysts

We rate INFY Hold as we see shares as fairly valued at a meaningful premium. Operational ■ Earnings results and guidance updates

execution and elevated demand have supported revenue growth outperformance, but added ■ Progress on new offerings and digital

catalysts for growth and operating margin levers appear limited as it laps elevated comps. revenue

■ Potential M&A/Additional JV activity to

drive new services or revenue growth

Base Case Assumptions Upside Scenario Downside Scenario

■ CC revenue growth of 3.0% in FY27 ■ CC revenue growth above 3.5% in FY27 ■ CC revenue growth below 1.5% in FY27

■ Adj Operating margin of 20.8% in FY27 ■ Adj Margin expansion at or above top ■ Adj Operating margin at low end of

end of guide of 20-22% via workforce 20-22% guide from elevated attrition,

optimization and automation initiatives cost inflation, continued investments, and

lower than expected demand

Price Performance Company Description

Infosys Limited (Infosys) provides business consulting, technology, engineering, and

$22

outsourcing services. Its end-to-end business solutions include consulting and systems

integration comprising consulting, enterprise solutions, systems integration and advanced

technologies; business information technology (IT) services consisting application development

18 and maintenance, independent validation services, infrastructure management, engineering

services comprising product engineering and life cycle solutions and business process

16 management; products, business platforms and solutions, including Finacle.

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