Jan 16 (Reuters) – Infosys rose 5% on Friday after unexpectedly raising its fiscal 2026 revenue forecast, pointing to a \u200bpossible turnaround for India’s $283 billion IT industry as AI-led partnerships \u200cdrive deals.<\/p>\n
Shares of India’s No.2 software services exporter led gains on the Nifty \u200c50 index with its strongest intraday rise in four months and lifted the Nifty IT sub-index 2.2% higher.<\/p>\n
Infosys’s push for vendor consolidation is boosting growth prospects, while its AI library is strengthening its position as \u2060clients expand account sizes \u200cduring renewals, Morningstar said.<\/p>\n
“Infosys is in a better competitive position compared with other Indian IT consulting firms due \u200dto its comprehensive AI offerings,” the brokerage added.<\/p>\n
The company has won AI-led deals with Adobe and Siemens AG in 2025 but did not disclose \u200bits AI revenue.<\/p>\n
Its order book for deals above $50 million rose \u200cto a two-year high at $4.8 billion.<\/p>\n
At least three brokerages, including Jefferies, raised their target price after the results.<\/p>\n
On Wednesday, Infosys said revenue would grow 3%\u20133.5% in the fiscal year ending March 31, 2026, above its earlier forecast of 2%-3%.<\/p>\n
The outlook points to steady discretionary \u2060tech spending and momentum in its core \u200bfinancial services business, two days after \u200brival Tata Consultancy Services flagged strong 2026 demand.<\/p>\n
Revenue from the financial services segment, which accounts for nearly a third \u200dof Infosys’s sales, \u2060rose 3.9% during the quarter.<\/p>\n
Earlier this week, TCS posted its third-quarter revenue marginally above estimates on AI-driven demand. Shares were \u2060up 1.6% on the day.<\/p>\n
Wipro, which is due to report its quarterly earnings \u200clater in the day, climbed 3.2%.<\/p>\n
(Reporting by Urvi Dugar \u200cin Bengaluru; Editing by Sumana Nandy)<\/p>\n","protected":false},"excerpt":{"rendered":"Jan 16 (Reuters) – Infosys rose 5% on Friday after unexpectedly raising its fiscal 2026 revenue forecast, pointing…\n","protected":false},"author":2,"featured_media":240824,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,129627,85,207,1959,46,2367,125],"class_list":{"0":"post-240823","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-drive-deals","12":"tag-il","13":"tag-india","14":"tag-infosys","15":"tag-israel","16":"tag-nifty-50","17":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/240823","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=240823"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/240823\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/240824"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=240823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=240823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=240823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}