Infosys shares declined over 2 per cent on Friday following the company’s Q1 results. The tech major moderated its FY27 constant currency revenue growth guidance to 1.5–3 per cent and lowered the upper end of its earlier forecast.The stock traded at ₹1,032.70 at 9.37 am on the NSE, hitting a low of ₹1,023 from the previous close of ₹1,047.40.Revenue in the June quarter of FY27 climbed 3.9 per cent q-o-q to ₹48,211 crore, while net profit slipped 8.6 per cent q-o-q to ₹7,769 crore.On a y-o-y basis, net profit rose 12.2 per cent, while revenue increased 14 per cent.Morgan Stanley maintained an equal-weight rating on Infosys and cut its target price to ₹1,075 from ₹1,112, calling the results worse than feared. It said the sharp cut in the FY27 outlook could reflect Infosys-specific reasons, while it also believes growth has become more challenged for the industry as a whole. It expects FY27 to show erosion in the growth outlook along with lower margins, affecting EPS growth. It noted that deal wins were strong and the company is progressing well on new AI services, while investors are likely to monitor a smooth CEO transition phase.Jefferies maintained a hold rating and cut its target price to ₹1,020 from ₹1,235. It said the worsening growth outlook is in the price and noted that the appointment of the CEO-designate may provide comfort on the CEO transition. Jefferies cut estimates by 1–3 per cent and expects Infosys to deliver a 5 per cent recurring EPS CAGR.BofA maintained a buy rating but cut its target price to ₹1,300 from ₹1,570. It said Q1 demands a build-up in the rest of FY and highlighted good execution on the AI business and profitability. It also noted that new deal wins moved up nicely from the previous quarter.Domestic brokerage Motilal Oswal reiterated its buy rating and set a target price of ₹1,170, implying around 12 per cent upside. The brokerage trimmed its FY27E/FY28E EPS estimates by around 2 per cent, citing lower FY27 organic growth guidance and continued pricing pressure from AI-led productivity deflation. It said AI revenue continues to scale up rapidly, while productivity pass-through on the existing book of business will remain a near-term headwind. Execution on deal conversion and pricing remains a key monitorable.Motilal Oswal also said CEO succession could introduce near-term uncertainty.Elara Capital revised Infosys to accumulate from buy and lowered its target price to ₹1,150 from ₹1,530. It said the steep cut in organic growth guidance was concerning, along with a contract termination by a client. The brokerage also said Infosys is not getting better pricing due to intensifying competition and acknowledged AI deflation impacting revenue growth without specifying any number. Elara Capital cut its USD revenue growth estimates for FY27E/28E by 3–4 per cent and earnings by 4–6 per cent.Published on July 24, 2026