Infosys Shares Could Jump 10% as ADR Signals Upside; Targets Raised to ₹2,076
On January 14, 2026, Infosys shares (American Depositary Receipt) jumped more than 10% in New York after the company raised its revenue growth outlook for the year. This move came after Infosys reported its third-quarter results and lifted its FY26 growth guidance.
The sharp ADR rise has caught the attention of stock market traders and analysts. It suggests strong demand from foreign investors and could push the Indian share price higher when markets open.
Brokerages have also raised price targets. Some see upside towards ₹2,076 per share. Investors are now talking about what this could mean for the stock in the near term. Let’s explore why the ADR move matters, what analysts are saying, and how traders should think about the outlook.
What Triggered the Infosys Shares Rally?
On January 14, 2026, Infosys’ ADR (American Depositary Receipt) surged over 10% on the New York Stock Exchange. This sharp move came after the company reported its Q3 FY26 results and raised its FY26 revenue growth outlook. The guidance was lifted to a 3-3.5% range from an earlier 2-3% estimate. The rise in ADRs reflects strong interest from global investors and often sets the tone for the stock in Indian markets before trading opens.
ADR gains are sometimes seen as a leading indicator of demand for a stock. In this case, the strong ADR move pointed to renewed foreign appetite. Infosys also maintained its operating margin guidance of 20–22%, which helped calm concerns around profitability pressures.
Infosys Q3 FY26 Financials and Performance
In the October–December quarter, Infosys saw mixed financial results. Net profit declined about 2.2% year‑on‑year to around ₹6,666 crore, partly due to the impact of new labour code compliance costs imposed in November 2025, which added roughly ₹1,289 crore in liabilities. Revenue, however, rose nearly 8.9% to about ₹45,479 crore.
The company’s total contract value (TCV) of large deal wins jumped significantly. TCV for deals worth more than $30 million hit $4.8 billion, compared with lower figures in prior quarters. This strong backlog helped support the optimistic outlook.
Infosys also reported improvement in revenue from core services and a reduction in employee attrition, which boosted investor confidence in future prospects.
Infosys Brokerage Targets & Analyst Commentary
After the ADR move and earnings, several brokerages revisited their price targets and outlooks. Global firm Nomura reaffirmed its ‘Buy’ rating on Infosys with a target of ₹1,810, even though net profit dipped. The firm pointed to higher revenue guidance, strong large‑deal wins, and resilient margins as key reasons to remain positive on the stock.
Other analysts have been constructive too, noting that Infosys’ position in the IT services sector and emphasis on digital transformation and AI‑related services support future growth. Some brokerage houses have recommended even higher targets, though these vary based on assumptions around demand sustainability and margin performance.
Infosys: Technical Outlook & Market Perception
Market technicians have pointed to key support and resistance levels following the ADR lift. The stock has held above important support near ₹1,560-₹1,570, a sign that buyers remain in control. On the upside, resistance zones around ₹1,650-₹1,680 will be watched closely. If the stock clears these levels, it could unlock further short‑term gains.
The ADR jump has shaped expectations for a positive opening in Indian markets on January 16, 2026, since Indian exchanges were closed for a holiday on January 15. The uptick in ADRs often translates into higher opening prices once Indian stock markets resume trading.
Risk Factors to Consider for Infosys
Despite the positive signals, risks remain. The labour code changes imposed late last year have added costs that may affect margins in the near term. This impact was felt in Q3 results and could continue to pressure earnings if additional compliance expenses arise.
Global macro conditions also remain uncertain. Discretionary IT spending can slow if economic conditions deteriorate in key markets like North America and Europe. Some analysts caution that strong ADR moves should be interpreted with care and not seen as a sole driver of long‑term value.
How Infosys Q3 Results Impact Investors?
Short‑term traders may view the recent ADR surge as a buy signal. Strong deal wins and raised guidance could help the stock maintain upward momentum. However, longer‑term investors should watch how Infosys executes its strategy in digital and AI services. Sustained revenue growth beyond guidance upgrades will be key.
Investors should also track updated earnings guidance for Q4 FY26 and how Infosys manages margin pressures from labour code changes and global cost dynamics. The large deal pipeline and continued focus on transformation services may offer support if macro demand holds.
Conclusion
The 10% ADR rise on January 14, 2026, was a clear vote of confidence from international markets following Infosys’ Q3 earnings and revised revenue outlook. While the Q3 numbers showed modest profit pressure, strong revenue growth, deal wins, and favorable guidance lifted sentiment. Brokerages have an overall positive view, but risks like labour code impacts and global tech demand remain. How Infosys navigates these factors will shape its stock performance in the months ahead.
Frequently Asked Questions (FAQs)
Infosys ADR rose over 10% on January 14, 2026, after the company raised its FY26 revenue guidance and reported strong Q3 results. Investors saw this as a positive signal.
Infosys raised its FY26 revenue growth guidance to 3-3.5% on January 14, 2026. The company expects steady growth from large deals and digital services in key markets.
After Q3 FY26 results, brokers raised Infosys price targets. Some now see the stock reaching around ₹2,076, while others are slightly lower, reflecting a cautiously positive outlook.
Disclaimer
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
