INFY

nfosys is facing margin pressure as global clients tighten IT budgets, but its strong digital transformation pipeline is a cushion. Q1 FY26 revenue grew 6% YoY, supported by large deal wins. However, attrition continues to be a concern, impacting cost structures. The company’s AI-first strategy could help secure long-term contracts. With valuations at ~24x FY26 EPS, the stock looks fairly priced. Short-term volatility may persist, but investors with a long-term horizon can accumulate on dips. Keep a close watch on deal pipeline commentary in upcoming quarters.