Dec. 22, 2025 — Infosys Limited (NSE: INFY | BSE: INFY | NYSE: INFY) is back in the spotlight on Monday after a rare combination of events: a sudden, outsized surge in its U.S.-listed ADRs that triggered trading halts, and fresh clarity on a long-running U.S. legal overhang tied to its subsidiary Infosys McCamish Systems.
In Indian trading, Infosys shares rose about 3% and outperformed the broader market, with the day’s move extending a multi-session IT-led rebound. 1
Below is what’s moving Infosys stock right now, what the company has said, and what analysts are forecasting into the next earnings catalyst.
What’s moving Infosys stock on 22 December 2025
Infosys is being pulled by three storylines at once:
- A sector tailwind in India
Indian benchmarks moved higher with broad-based gains, while IT led sectoral performance. Reuters reported the Nifty IT index up around 2% on the day, with Infosys and Wipro rising about 3% each, helped by a weaker rupee, sector rotation, and shifting expectations around interest rates and foreign flows. 2 - The NYSE ADR “spike and halt” episode is still echoing
Infosys ADRs (INFY) surged as much as 56% on Friday, briefly touching $30 and triggering volatility pauses, before the move cooled. That kind of price action tends to drag attention (and sometimes flows) back to the India-listed shares the next session—especially for global funds that arbitrage ADRs and local shares. 3 - McCamish settlement clarity reduces headline risk
Infosys disclosed that a U.S. court granted final approval for a $17.5 million settlement related to class action lawsuits involving Infosys McCamish Systems—an update that Indian market participants quickly treated as a “clean-up” of a noisy issue. 4
The NYSE mystery: why Infosys ADRs surged up to 56% and then reversed
What happened
On Friday (Dec. 19), Infosys ADRs abruptly spiked—so sharply that the NYSE triggered two volatility trading pauses under the Limit Up–Limit Down (LULD) mechanism. 5
Market reporting on the incident converged on a non-fundamental explanation: mechanical market structure effects rather than a sudden change in Infosys’ business outlook.
- MarketWatch described the move as consistent with a short squeeze and pointed to unusual dynamics around converting ordinary shares into ADRs to meet delivery needs, with volume far above normal levels. 3
- Moneycontrol similarly framed the spike as a short squeeze driven by stock lending mechanics, reporting chatter about a large recall that overwhelmed normal ADR liquidity. 6
- Barron’s emphasized the lack of a clear corporate catalyst and noted speculation around forced buy-ins and borrow-cost pressure—classic accelerants for squeezes. 7
Why it matters for investors
This episode is a reminder of something boring-but-important: ADRs can behave differently from the local line, especially in thin or dislocated liquidity moments.
Even when the underlying India-listed share is calm, ADR pricing can be distorted by:
- options expiry flows,
- inventory/borrow constraints,
- conversion and settlement timing,
- “who needs shares right now” dynamics.
That doesn’t automatically mean Infosys’ intrinsic value changed—it can mean the plumbing got noisy.
Infosys’ official clarification: “no material events” behind the ADR volatility
Infosys issued a formal clarification to stock exchanges stating it had observed the ADR volatility and confirming that, to its knowledge, there were no material events requiring disclosure under applicable SEBI regulations. The company explicitly said the communication was issued for transparency and to avoid unwarranted speculation. 5
On the U.S. side, Infosys also furnished a Form 6‑K on Dec. 22 that attached the same clarification as an exhibit—essentially mirroring the exchange communication into the SEC’s disclosure pipeline. 8
In plain English: Infosys is telling the market, “We saw the spike too; it wasn’t because we’re sitting on undisclosed news.”
McCamish settlement: what Infosys said, and what investors should watch next
The headline
Infosys disclosed that a U.S. court granted final approval for a settlement under which Infosys McCamish Systems will pay $17.5 million into a fund to resolve class action lawsuits. If the settlement is not appealed within 30 days, it becomes effective and resolves the allegations without admission of liability. 4
The context investors care about
Fortune India tied the lawsuits to fallout from a ransomware/data incident involving McCamish systems and described the long cleanup arc around impacted applications and investigations. It also reported Infosys had previously indicated an insurance reimbursement receivable that offset much of the settlement expense. 9
The key “watch item”
The settlement becomes truly “done” after the appeal window. Markets often price “final approval” as progress, but the real de-risking moment is when the effective date hits without appeals.
Next catalyst: Infosys Q3 FY26 results date and what to expect
Infosys has already set the calendar for the next major fundamental checkpoint:
- Board meeting: Jan. 13–14, 2026
- Results presentation/approval: Jan. 14, 2026
- Investor/analyst calls: Jan. 14, 2026
- Trading window closure: Dec. 16, 2025 through Jan. 19, 2026 (per the company’s disclosure) 10
That earnings print matters because it can either:
- confirm that Infosys’ deal momentum is translating into revenue,
- or show that macro caution (and seasonal furlough effects) are still biting.
Fundamentals check: Infosys’ latest reported numbers and FY26 guidance
In its Q2 FY26 financial snapshot (quarter ended Sept. 30, 2025), Infosys reported (IFRS, INR):
- Revenue: ₹44,490 crore
- Operating margin: 21.0%
- Net profit (after NCI): ₹7,364 crore 11
On guidance and outlook, Reuters reported Infosys raised the lower end of its FY26 revenue growth forecast to 2%–3% (constant currency) and maintained margin guidance, supported by a stronger quarter and large deal bookings. 12
That’s the backdrop heading into Q3: not “hypergrowth,” but a company trying to compound steadily while the global discretionary IT spend cycle remains uneven.
Analyst forecasts and price targets: what the Street is projecting for INFY
Consensus views vary depending on the dataset and the market line (India shares vs U.S. ADR), but the broad picture today looks like this:
India-listed Infosys (INFY): modest upside implied, but not a one-way bet
Business Standard, citing Bloomberg tracking, reported:
- 51 analysts covering Infosys
- 37 Buy, 12 Hold, 2 Sell
- Average 12‑month target ~₹1,727, implying low-single-digit upside from prevailing levels (at the time of reporting). 13
U.S.-listed Infosys ADR (INFY): targets cluster near the current range
MarketWatch’s analyst estimates page showed an average target price around $19.27 (with dozens of ratings counted), placing consensus near the ADR’s post-spike trading neighborhood. 14
How to read these forecasts in a week like this
Analyst targets are typically built on revenue growth, margin trajectory, and valuation multiples—not on one-off ADR plumbing events.
So if you’re comparing “price target vs. price,” keep this mental filter:
- ADR spike = microstructure noise
- Earnings + guidance = macro + execution signal
- Settlement clarity = risk premium adjustment
The bull and bear case for Infosys stock right now
Why bulls are showing up
- IT stocks are catching a macro breeze: foreign flows stabilizing and rate-cut hopes can lift defensives and exporters, and Reuters noted IT leading sector gains on Monday. 2
- Legal headline risk is shrinking: the McCamish settlement final approval is the kind of “uncertainty reducer” markets often reward in the short term. 4
- Operational baseline remains solid: Q2 FY26 showed revenue growth year-on-year and stable operating margin around 21%. 11
Why bears won’t leave the chat
- Discretionary tech spending is still fragile in many verticals globally, and Indian IT has been living through a choppy demand environment. (Even when deal wins are strong, conversion to revenue can lag.) 12
- U.S. visa policy and cost shifts remain a real sector issue. A $100,000 fee for certain new H‑1B petitions has triggered legal challenges and broader concern among employers; that can raise the cost of onsite staffing models that large IT services firms have historically used. 15
- ADR volatility risk is non-trivial for U.S. holders: Friday’s event showed how quickly price can detach from fundamentals in the ADR wrapper. 3
What to watch next for Infosys (INFY) investors
Over the next few weeks, Infosys stock direction is likely to hinge less on the “ADR mystery” and more on a simple trio:
- Did Q3 show resilient demand and healthy margins? (Jan. 14 catalyst) 10
- Does the McCamish settlement become effective without appeal? (risk overhang check) 4
- Does the global IT spending narrative improve into 2026—or stay cautious? (macro + client budgets)
Infosys is, as ever, a battleground stock between “steady compounding exporter with AI tailwinds” and “large-cap IT exposed to budget scrutiny and policy friction.” On Dec. 22, the market is rewarding clarity and momentum—but the next earnings call is where the story has to cash the check.
