IT Sector Re-rating: Infosys AI Commentary Sparks Hope, But Analysts Demand Monetization Proof

• Infosys shares surged 6% after positive Q3 FY26 results and AI commentary, leading Nifty IT index gains.
• The company reported Rs 6,654 crore net profit for Q3 FY26 (down 2.2% YoY due to one-time cost) and 9% YoY revenue growth to Rs 45,479 crore.
• Infosys revised its FY26 revenue growth forecast upwards to 3-3.5% and highlighted over 500 AI agents working with 90% of its top 200 clients.
• Analysts like Motilal Oswal and Morningstar are optimistic about Infosys's AI position, but others like Master Capital Services and INVasset PMS seek concrete evidence of AI monetization and consistent performance for a broad market re-rating.
• TCS and HCLTech also reported AI revenue growth, with TCS's annualised AI revenue jumping 17.3% sequentially to $1.8 billion.

Why It Matters: Positive AI commentary from Infosys and TCS boosts IT stocks, but analysts await tangible monetization for a full re-rating.