Infosys (INFO IN) – Analyst Meet Update – From Digital to AI, positioned for next cycle of growth – BUY
Published on 18 Feb 2026
We attended Infosys’ AI Day where management outlined the implications of enterprise AI adoption for the company & clients. Management believes that the labor-intensive model would still be relevant. The employee roles would be shifting from applications development or infrastructure management to a more complex role, training AI models or building orchestrating layer, even beyond the funnel the agentic deployment, establishing governance and regulatory guardrails would require relevant skill set. The agentic workflows would compress the IT service revenue to some extent, but at the time it sees the incremental opportunity in Advanced AI (USD300-USD400b by CY30) to exceed the compression that it sees for IT services. The recent partnership with Anthropic would help it deploy tailored AI Agents across multiple industries. Again, the ownership of AI Agents, whether a third-party provider or a vendor itself, would control the enterprise billing. INFO currently derives ~5.5% of revenues from AI and serves ~90% of its top 200 clients. Every cost reduction cycle has seen an exponential increase in demand, whether it is Cloud or Digital, this time it should not be different. We value the stock at 22x FY28E EPS to arrive at a TP of ₹1,900; maintain BUY.
