Infosys Shares in Focus on AI-First Framework to Capture $400 Bn Services Opportunity. What Are Brokerages Saying?
•February 18, 2026
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Companies Mentioned
Why It Matters
The move positions Infosys to monetize the fast‑growing AI services market and could drive an earnings uplift for the sector, while investor sentiment hinges on execution of the Topaz ecosystem.
Key Takeaways
- •Infosys targets $300‑400B AI services market by 2030
- •Topaz used by 90% of top 200 clients
- •AI now contributes 5.5% of Infosys revenue
- •Motilal Oswal sets Rs 1,850 target, 33% upside
- •Morgan Stanley flags execution risk, Rs 1,760 target
Pulse Analysis
The global demand for enterprise‑grade artificial intelligence is accelerating, with estimates that AI‑driven services could generate up to $400 billion in new spend by 2030. Infosys’ Topaz framework seeks to capture this tailwind by bundling generative models, autonomous agents, and a partner ecosystem into a single, AI‑first offering. By embedding Topaz across 90 % of its largest clients, the company not only creates cross‑selling opportunities but also differentiates itself from peers that still rely on legacy consulting models. This strategic shift reflects a broader industry move from project‑based AI pilots to scalable, outcome‑based services.
Brokerage houses have reacted cautiously. Motilal Oswal upgraded its FY26 revenue outlook and reiterated a Buy call, projecting a 33 % upside to Rs 1,850, driven by the expectation that AI‑native applications will lean on Infosys’ deep client relationships. Morgan Stanley, while keeping an Equal Weight stance, highlighted execution risk and uncertainty around pricing models, setting a modest Rs 1,760 target. Both firms note that AI now accounts for 5.5 % of revenue, but the path to monetising the larger opportunity remains contingent on delivery speed and ecosystem coordination.
For the Indian IT sector, Infosys’ aggressive AI push could set a new benchmark, pressuring rivals such as TCS and Wipro to accelerate their own AI roadmaps. If Topaz delivers the promised margin expansion—currently anchored at 20‑22 %—shareholders may see a re‑rating of earnings multiples, especially as FY27‑FY28 demand ramps up. However, the transition also raises questions about talent acquisition, data governance, and the scalability of AI agents in regulated industries. Successful execution would not only boost Infosys’ top line but also reinforce India’s position as a global hub for high‑value AI services.
Infosys shares in focus on AI-first framework to capture $400 bn services opportunity. What are brokerages saying?
Infosys shares in focus on AI‑first framework to capture $400 bn services opportunity. What are brokerages saying?
By Veer Sharma, ETMarkets.com
Last Updated: Feb 18 2026, 09:30 AM IST
Infosys bets big on AI‑first services with Topaz framework.
Shares of information‑technology major Infosys will be in focus heading into trade on Wednesday after the company unveiled its AI‑first value framework to help global enterprises unlock AI value at scale, harnessing the power of its industry‑leading generative and agentic AI suite, Infosys Topaz.
The move opens a new frontier in IT services and is expected to enable the company to tap into an incremental AI‑first services opportunity of $300‑400 billion by 2030.
Infosys is pursuing a two‑pronged AI strategy: capturing fresh demand for AI‑first services across multiple value pools while embedding AI into its existing offerings to deepen client engagement and expand wallet share.
Nandan Nilekani, Co‑founder and Chairman of Infosys, said:
“IT services companies will play an even more critical role in the AI era. While AI agents can automate tasks and enhance productivity, enterprises still require deep systems integration, governance, trust frameworks, and large‑scale transformation capabilities to fundamentally re‑engineer their businesses. As an AI‑first company with over four decades of experience guiding clients through technology shifts, Infosys is uniquely positioned to orchestrate AI across complex ecosystems and unlock significant value from the expanding global AI services opportunity.”
What are analysts saying?
Motilal Oswal has reiterated its Buy call on Infosys, assigning a target price of Rs 1,850, implying 33 % upside from current levels. The brokerage believes AI‑native enterprise applications will continue to rely on legacy IT vendors’ deep client relationships and delivery capabilities, supporting a gradual recovery in the sector. It highlights the emergence of a partnership ecosystem—including collaborations such as Infosys‑Cognition, Infosys‑Cursor, and Infosys‑Anthropic—as critical to driving AI adoption at scale.
Motilal Oswal expects CY26 to mark the bottom of the growth cycle, with a meaningful acceleration likely in 2HFY27 and FY28 as AI services move into scaled deployment. While near‑term multiple re‑rating may be capped by concerns around terminal value and AI‑led disruption, the brokerage sees limited risk of earnings cuts and signs of a cyclical recovery in core businesses.
Morgan Stanley has maintained its Equal Weight rating on Infosys, with a target price of Rs 1,760. The brokerage views the AI transition as largely opportunity‑led, while flagging execution risks.
It notes that AI‑related services now contribute 5.5 % of revenue and have been deployed across 90 % of the company’s top 200 clients. Morgan Stanley highlights the Topaz platform, along with its tools, agents, and partner ecosystem, as key strengths. While margins remain stable despite ongoing AI investments, with cost savings being reinvested, the brokerage says the overall size of the net AI revenue opportunity and the evolution of pricing models are still unclear.
Infosys Q3 snapshot
Infosys reported a 2 % year‑on‑year (YoY) decline in consolidated profit to Rs 6,654 crore for the December quarter, compared with Rs 6,806 crore a year earlier, while revenue from operations rose 9 % to Rs 45,479 crore. Alongside the guidance upgrade, the company retained its margin outlook at 20‑22 % for FY26.
The company delivered a positive surprise by raising its constant‑currency revenue‑growth guidance for FY26, lifting the full‑year outlook to 3‑3.5 %, up from the earlier 2‑3 % band, signalling clearer improvement in demand conditions.
Commenting on the performance, CEO and Managing Director Salil Parekh said the strong Q3 execution underscored the company’s differentiated enterprise AI offerings under Infosys Topaz, which continue to drive market‑share gains.
Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.
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