Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 25 May 2026
INFY· Technology
Infosys
Infosys shows strong ROIC but lacks pricing power in a competitive tech services sector.
Buffett fit
Partial fit
Owner
70
Durability
79
Management
33
Price
37
Score updated 26 Sept 2026 · analysis from 25 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of Infosys, we'd focus on maintaining its strong of 26.7% and leveraging its low debt/equity ratio of 0.10 to explore growth opportunities.
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Infosys has demonstrated durability with stable and consistent profitability.
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Infosys has maintained a disciplined with a share count CAGR of -1.3% and a yield of 2.01%.
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At a of 14.1 and an yield of 7.65%, Infosys is reasonably priced but doesn't offer a significant .
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 26.7% is top-quintile in the tech sector.
- 2 of 20.3% exceeds the sector's top-quintile cutoff.
- 3Net debt/EBITDA of -0.28 indicates a net cash position.
- 4Interest coverage ratio of 86.5 suggests strong financial health.
Concerns
5- 1 of 30.2% is below the sector's top-quintile cutoff of 72.4%.
- 25-year EPS CAGR of 4.35% is modest, indicating limited growth.
- 3 YoY growth of -8.68% raises concerns about cash generation.
- 4Market cap decrease versus retained earnings suggests value creation challenges.
Price history
$12.75-44.6%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Infosys provides consulting, technology, and outsourcing services with a focus on digital transformation. The company generates $20.16B in revenue, with a net income of $3.31B, and operates at a 30.2% . Its diversified services include AI, cloud, and digital commerce solutions. The unit economics suggest moderate profitability with a net margin of 16.44%.
What other investors would say
The same company, judged by three other documented playbooks.
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