Infosys downgraded by JPMorgan, HSBC after earnings miss and weaker growth outlook
Yahoo Finance ·
Infosys downgraded by JPMorgan, HSBC after earnings miss and weaker growth outlook Jaiveer Shekhawat Fri, July 24, 2026 at 9:24 AM EDT 2 min read JPM HSBC Investing.com -- Infosys drew fresh analyst downgrades from JPMorgan and HSBC after its first-quarter earnings missed expectations, management cut its fiscal 2027 revenue growth guidance for a second consecutive quarter, and announced a CEO transition, reinforcing concerns over slowing business momentum. JPMorgan downgraded the IT services company to Neutral from Overweight, lowering its price target to ₹1,050 from ₹1,200, while HSBC cut its rating to Hold from Buy and reduced its target price to ₹1,110 from ₹1,340. Both brokerages said the company's near-term growth outlook has deteriorated despite relatively inexpensive valuations. The brokerages cited weaker demand, AI-driven pricing deflation, contract-related headwinds including a termination in the Energy, Utilities, Resources and Services segment and reduced work from a manufacturing client, alongside slower revenue conversion from strong deal wins. JPMorgan said these factors have hit Infosys' growth momentum even as large-deal signings remained healthy. Infosys lowered its FY2027 constant-currency revenue growth guidance to 1.5%-3.0% from 1.5%-3.5%, while its organic growth outlook was reduced to -0.2% to 1.3%. JPMorgan described the cut as sharper than expected and now forecasts the company to lag key peers on growth this year. HSBC also warned that the revised guidance may still not be conservative enough, citing management's comments about weakness spilling into the second quarter. Both firms noted that first-quarter revenue growth missed expectations, although operating margins remained resilient and the company maintained its FY2027 EBIT margin guidance of 20%-22%. Infosys also reported $3.6 billion in large-deal total contract value during the quarter, highlighting continued demand despite slower revenue realization. Separately, Infosys announced that Ashiss Kumar Dash, currently head of the Energy, Utilities, Resources and Services business, will succeed Salil Parekh as chief executive from April 2027. Both JPMorgan and HSBC viewed the appointment of an internal candidate as supportive of a smoother leadership transition, though JPMorgan cautioned that broader management churn could persist in the near term. Nvidia's new Alpamayo project: What it means for Tesla? Wolfe Research outlines eight risks that could spark stock declines in 2026
AI 시장 분석
Infosys has suffered rating downgrades from major investment banks like JPMorgan and HSBC after reporting weak Q1 earnings and consecutively lowering its fiscal 2027 revenue growth guidance. A combination of demand weakness, AI-driven price deflation, and energy sector contract terminations has significantly damaged short-term growth momentum. Consequently, price targets have been universally lowered, and investors need to adopt a conservative approach for the time being.
하락 영향
- IT Services — Short-term growth momentum across the IT services sector has weakened due to Infosys's poor earnings, guidance cuts, and AI-driven price deflation.
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