Infosys‘ share price was tanking on Friday morning as the company’s September quarter results failed to impress analysts and investors. The stock went down over 4% to hit an intraday low of ₹1,889.

What Happened: Infosys reported a net profit of ₹6,506 crore for the quarter, a 4.7% rise from the ₹6,212 crore it earned last year, with revenue from operations at ₹40,986 crore, up 5%. While revenue surpassed market expectations, profit fell short.

The company also announced an interim dividend of ₹21 per share, with October 29 as the record date and November 8 as the payout date. Infosys revised its FY25 revenue growth guidance to 3.74%-4.50% and said it expects an operating margin of 20%-22%.

What Brokerages Are Saying: Nomura maintains its “buy” rating on Infosys with a target price of ₹2,130. The firm said that there was a slight miss on Q2 revenue and weaker-than-expected deal wins, which could potentially lead to a short-term correction in the stock price. The brokerage advises investors to consider building positions in the stock if a correction occurs, as they remain optimistic about its long-term prospects.

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Bernstein remains bullish on Infosys, maintaining its “outperform” rating and raising the target price to ₹2,270 from ₹2,100. Bernstein views Infosys as being in an “up-cycle,” noting that deal momentum remains healthy and that the company continues to grow faster than its peers. Infosys is one of Bernstein’s top picks.

Nuvama remains positive on Infosys and retains its “buy” rating with a target price of ₹2,250. The brokerage said that the management highlighted early signs of a revival in discretionary spending, with a $50 million (₹420 crore) pipeline of deals showing double-digit sequential growth.

Nuvama believes that Infosys will benefit disproportionately from this recovery in FY26 and FY27, much like how it faced greater challenges compared to peers during FY24 and FY25. It sees Infosys as one of the best plays for a potential revival in the IT sector over the next few years, driven by renewed discretionary spending

HDFC Securities highlighted Infosys' strong Q2 performance, which led the company to raise its revenue guidance for FY25. Infosys outperformed its peers, largely driven by improved demand in the banking and financial services sector, where it secured seven large deals, along with an uptick in smaller short-cycle deals. The brokerage maintained its “add” rating with a price target of ₹2,010.

Investec, on the other hand, reiterated its “sell” recommendation for Infosys, lowering its target price slightly to ₹1,700 from ₹1,720. Despite Infosys delivering the strongest performance among peers in H1FY25, largely due to a solid deal backlog and fewer revenue headwinds, Investec sees no significant catalysts in H2FY25 to boost stock performance.

Price Action: Infosys’ share price was down 2.15% to trade at ₹1,925.85 as the markets opened on Friday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.