SuperworthInfosys Limited INFY
- Market cap
- $42.8B
- PE
- 13.2×
- Forward PE
- Price to sales
- 2.1×
- EV/EBIT
- —
- Revenue, 12 months
- $20.2B
- +5% on a year ago
- Net margin
- 16.4%
- Free cash flow yield
- —
Priced for a business AI will shrink
Earnings at a record, the multiple near a ten year low
Cheaper than almost any day in ten years
The PE is about 13 against a ten year median of 22, cheaper than all but a handful of days in the last decade. The low, also about 13, came this June. Price to sales sits near its ten year low too, so this is not one odd earnings figure.
The fear is that AI shrinks outsourcing
Market value is down about 55 percent from its December 2024 high. In July Infosys trimmed this fiscal year's growth guidance to 1.5 to 3 percent. It bills mostly for its engineers' time, so the bear case is that AI means fewer engineers and smaller bills. The bull case: AI was already 8.2 percent of revenue last quarter, and brake maker Knorr-Bremse signed for managed services run on its Topaz AI platform.
Growth slowed, but it did not stop
Revenue in the year to March 2026 was 20.16 billion dollars, up 4.6 percent. Growth has slowed from 20 percent in fiscal 2022, but each year on this chart is bigger than the last. Slow, but nothing here shows a business shrinking yet.
Margins are at a ten year low, slipping slowly
Operating margin is 20.3 percent, the lowest in ten years, down from 25.0 ten years ago. The slide is slow: three years ago it was 21.0. If AI forces clients to pay less for the same work, this line is where it shows first.
The price assumes earnings go nowhere
Forward PE is the price over the next twelve months of expected earnings. Analysts expect about 0.82 dollars a share, close to the 0.80 Infosys reported last year, so the stock trades at about 13 times. The chart before September 22 is rebuilt from today's estimates. The app's triple digit forward growth is a quirk: it sets a year of forecasts against one quarter. The price assumes no growth, not a collapse.
Earnings rose and the dividend yield doubled
Earnings per share are the highest on this chart, yet the price fell, so the dividend yields about 5 percent, twice its ten year median of 2.4. The test is October 23. A raise to the 1.5 to 3 percent guidance would say a no-growth price is too gloomy. Another cut would back the bear case.
What has happened lately
- PR Newswire, Infosys wins long-term managed services deal with brake maker Knorr-Bremse, run on its Topaz AI platformManaged services across Knorr-Bremse's whole application stack; no contract value given, but AI-led managed work is what the growth case rests on.
- Infosys (SEC filing), Infosys board appoints Ashiss Kumar Dash CEO designate, to succeed Salil Parekh on April 1, 2027A planned CEO succession after more than nine years under Parekh; the new chief inherits a low-growth outlook and the AI deflation debate.
- PR Newswire, Infosys Q1 FY27: revenue $5.08B, operating margin 21.1%, FY27 growth guidance trimmed to 1.5% to 3.0%Revenue grew 2.4% in constant currency and margins held while the top of the growth range came down; AI reached 8.2% of revenue.
Headlines link to the original source.
Charts
Financials
| Income statement |
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From each company's 10-Q and 10-K filings. Fiscal years are four fiscal quarters added up; balance sheet lines are as of the period's end. Growth is on the same period a year earlier.
Estimates
Next earnings report: .
Analyst consensus for the next eight quarters, with the range from the lowest to the highest estimate, is part of Superworth Pro.
About
- Industry
- Information Technology Services
- Sector
- Technology
Valuation data, not investment advice. Prices as of .