Infosys share price falls 1% ahead of Q1 results 2026. Should you buy or sell the IT stock?

Infosys share price fell as much as 1% on NSE in Thursday's trading session. The IT stock plunged ahead of its April-June quarter results for financial year 2026-27 (Q1 results 2026) announcement on 23 July.

Infosys shares opened at ₹1,046.90 apiece today, as compared to previous close of ₹1052.10 on Wednesday. The IT stock touched intraday high/low of ₹1,039.10 on 23 July.

Brokerage firm Motilal Oswal expects Infosys to report 2.0% QoQ CC revenue growth (1.0% organic), supported by a two-month contribution from Optimum and Stratus. Growth remains 1H-heavy as in prior years.

The firm added that US BFSI is expected to remain resilient, while telecom and manufacturing may stay weak due to client-specific issues, the Daimler ramp-down.

“We expect Infosys to lower the upper end of its FY27 revenue growth guidance by 50bp to 1.5–3.0% YoY CC,” the brokerage firm said.

It further noted that operating margin is expected to improve 40bps QoQ to 21.4%, aided by the absence of wage hikes in 1Q, reversal of visa-related costs incurred in 4Q, and continued Project Maximus-led cost efficiencies.

Meanwhile, Seema Srivastava, Senior Research Analyst at SMC Global Securities, believes that Infosys results are expected to be flat to positive, supported by acquisition-led sequential revenue growth, healthy large deal wins and resilient operating margins.

Srivastava said that revenue is expected to grow modestly on a sequential basis, aided by the consolidation of recent acquisitions and steady execution of large deal wins, while underlying organic demand is likely to remain mixed across key verticals.

EBIT margin is expected to remain resilient, supported by operational efficiencies and a favourable business mix, although integration costs from acquisitions and continued investments in AI capabilities may limit margin expansion, according to Srivastava.

"Large deal total contract value (TCV) is expected to remain healthy, reflecting sustained demand for cost optimization, cloud migration and AI-led digital transformation despite a cautious macro environment. However, weak discretionary spending, continued macroeconomic uncertainty and slower decision-making by clients may keep organic growth subdued.

Key things to watch includes FY27 revenue guidance, margin outlook, large deal TCV, demand trends across key verticals, progress in AI-led transformation, acquisition integration and management's commentary on client spending and the overall demand environment," she added.

According to Harshal Dasani, Business Head – INVasset PMS, Infosys is not a straightforward pre-results opportunity. The recent correction has made valuations more reasonable, but the earnings cycle still lacks the visibility needed to justify an aggressive position ahead of the Q1 numbers.

Dasani highlighted that the Q1 headline numbers are unlikely to be the biggest trigger. The market will focus far more on management commentary around deal conversion, the pace of discretionary spending recovery, the quality of large deal wins, and confidence in full-year growth.

“The current risk-reward appears balanced rather than compelling. If management indicates that client decision-making is improving and the deal pipeline is translating into faster revenue conversion, the stock could see renewed interest. Until then, it is prudent to wait for greater earnings visibility instead of taking event risk purely ahead of the quarterly results. In the current cycle, clarity on future demand is likely to matter more than a marginal earnings beat,” he added.

On the other hand, Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, said that Infosys Q1 results are expected to be marginally better than the previous quarter. However, the management's commentary on demand trends and the company's FY27 revenue guidance will be the key factors for investors.