Infosys continues to navigate a complex structural shift as it pivots toward an AI-first future. During its February 2026 Investor AI Day, the company detailed an aggressive roadmap targeting an incremental AI services market estimated at **$300 billion to $400 billion** by 2030. Despite the long-term optimism, the market reaction has been sharp. As of February 18, 2026, Infosys shares traded near **₹1,365**, reflecting a **2.1%** intraday drop. This follows a broader period of volatility where the stock declined over **16%** since the start of February. The primary tension lies in the timing of financial impacts. Investors are currently weighing the immediate deflationary pressure on legacy revenues against the gradual ramp-up of AI-driven income. While AI is seen as a structural tailwind, it simultaneously automates traditional IT tasks, potentially squeezing traditional maintenance and development budgets. Management reported that AI-led services already contributed **5.5%** to total revenue in the third quarter of fiscal year 2026. This equates to approximately **$275 million** in quarterly AI-related income. The company is currently engaged in over **4,600** AI projects, with **90%** of its top 200 clients already adopting these solutions. Central to this strategy is the **Topaz Fabric**, a suite of over **600** pre-built AI agents designed to modernize legacy systems. A recent strategic partnership with Anthropic has further bolstered this ecosystem, integrating Claude models to automate complex industry workflows in telecommunications and financial services. Operational data shows a tangible shift toward high-value automation. The company has generated over **28 million** lines of code using AI internally, a **12%** sequential increase. Large deal momentum also remains stable, with a total contract value (TCV) of **$1.8 billion** secured in the most recent quarter. Financial guidance for the full year 2026 has been revised upward to a range of **3% to 3.5%** revenue growth in constant currency. However, operating margins remain under scrutiny, currently holding at **18.4%** due to increased investments in AI infrastructure and a commitment to hiring **20,000** new graduates to build a specialized talent pipeline. While brokerages maintain long-term buy ratings with targets reaching up to **₹2,050**, the near-term outlook is characterized by a "trust deficit." The market is waiting for evidence that AI revenue can grow fast enough to offset the inevitable compression of the traditional IT outsourcing model.