Infosys, a leading Indian IT services firm, witnessed its share price surge by over 5% on the National Stock Exchange (NSE) on January 16, 2026, following the announcement of its Q3 FY26 results for the October-December 2025 quarter. The market's positive reaction was largely driven by the company's upgraded revenue growth guidance for FY26 and strong large deal wins, despite a reported decline in net profit. The company announced its Q3 FY26 results on January 14, 2026, after market hours. Infosys reported a 2.2% year-on-year (YoY) decline in consolidated net profit, which stood at ₹6,654 crore, primarily attributed to a one-time exceptional charge of ₹1,289 crore related to the implementation of new labor codes in India. However, revenue from operations showed healthy growth, rising 8.9% YoY to ₹45,479 crore. A key highlight that buoyed investor sentiment was the upward revision of Infosys' FY26 constant-currency revenue growth guidance from the earlier 2-3% to 3-3.5%. This signaled improving demand visibility, especially given the seasonally weak quarter. Furthermore, the company reported robust large deal wins totaling $4.8 billion, with 57% classified as net new deals, indicating fresh business additions. Sequential constant currency revenue growth was 0.6%, exceeding some market expectations. Several brokerages, including Nomura, Elara Capital, Emkay Global, Morgan Stanley, and Jefferies, reiterated 'Buy' ratings and increased their target prices for Infosys shares, citing the strong deal momentum, guidance upgrade, and the company's focus on AI-led solutions. The positive sentiment was also reflected in Infosys' American Depository Receipts (ADRs), which jumped significantly in the US market.