3 Reasons Why Infosys Shares Have Slumped 4% in July. What Next?

It's not been great going for some of the IT stocks in the month of July 2025.

In fact, Infosys which was trading as high as 1,640 on 8 July, has slid to a low of Rs 1,567 on 14 July. This is a drop of slightly more than 4%.

Let's tell you some of the probable reasons why IT stocks like Infosys have fallen. We wish to emphasise there is no particular news-centric reasons for the drop in the share price of the company.

#1 Subdued Numbers from TCS

The Q1 FY26 result from major IT company TCS (Tata Consultancy Services) showed weaker-than-expected revenue growth, which led to a broad sell-off in the IT sector.

India's largest IT company said its revenue from operations were placed at Rs 634.37 bn. It was down 3.1% in constant currency terms on a sequential basis.

US dollar revenue declined against expectations of growth from investors. Overall, the numbers were subdued leading to a fall in the TCS stock and other IT stocks.

#2 Uncertainty and Cautious Client Spending

Investors are anticipating ongoing global macroeconomic and geopolitical uncertainties to lead to demand contraction. There is a possibility of delayed client decision-making, impacting revenue growth visibility for IT companies.

This is particularly for the US market, where volatile trade policies can impact economic growth and hence client spending. This is why some IT stocks like Infosys have fallen in the last few trading sessions, particularly on worries of client spending.

#3 Profit Booking Ahead of Quarterly Numbers

Infosys is scheduled to declare its Q1 FY26 results on 23 July 2025. The sentiment among investors seems to have turned cautious ahead of the quarterly results. This may have led to some profit booking in the stock.

The decline in IT stocks is also part of a larger industry sell-off, with the Nifty IT index falling significantly. In fact, the IT index has dropped near 4% since 1 July 2025.

What Next for Infosys?

In the short-term the more immediate trigger would be the Q1 FY26 results.

Investors would look for the management commentary on macro environment. Insights on global economic conditions, client spending patterns, and any impact of geopolitical factors or tariffs will be important for understanding key risks.

Given recent weak cues from TCS and broader IT sector challenges, Infosys's relative performance will be closely watched.

The strength of new large deal wins (Total Contract Value) and the health of the sales pipeline will signal future revenue momentum and client demand.

Market participants will look for Infosys' FY26 revenue growth guidance as well. A sharply improved revenue guidance for FY26 should help.

The way the stock has moved lower over the last few trading sessions, expectations from investors do not seem to be too high.

Infosys management post the Q4 FY25 results had emphasised resilience amid global uncertainties, and cautious but steady outlook for FY26.

How Shares of Infosys have Performed Recently?

Over the last one month, the share price of Infosys has lost 3% from Rs 1,632.75 to the current levels of Rs 1,576. The shares of the company have lost 7.6% in the last one year.

The stock hit a 52-week high of Rs 2,006.8 on 13 December 2024. The stock also hit a 52-week low of Rs 1,307.1 on 7 April 2025.

About Infosys

Infosys offers a wide range of services including business consulting, IT services, software development, maintenance, and outsourcing across industries such as finance, insurance, manufacturing, and more.

Its digital offerings include AI-powered platforms, cloud services, data analytics, automation, and enterprise software products like Finacle (digital banking), Panaya (application delivery), Infosys Equinox (digital commerce), and EdgeVerve (intelligent process automation).

The company focuses on enabling clients' digital transformation journeys by combining AI-first core systems with agile digital solutions at scale.

Infosys also emphasises continuous learning and innovation through its global ecosystem. It has strategic partnerships with major technology firms such as Microsoft, Google Cloud, IBM, Oracle, and SAP to enhance its service offerings.

To know more, you can check out Infosys fact sheet and latest quarterly results. You can also compare Infosys with its peers on our website.

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Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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