Infosys (INFY) turned in a solid third quarter on Wednesday, beating Wall Street expectations on both the top and bottom lines. But investors didn't seem all that impressed, at least not immediately.

The Indian IT services giant posted adjusted earnings of 21 cents per share, edging past analyst estimates of 20 cents. Revenue came in at $5.099 billion, up from $4.939 billion in the same quarter last year. Not bad for a company navigating a complicated global tech environment.

CEO and Managing Director Salil Parekh was notably upbeat about the results, pointing to the company's AI initiatives as a differentiator. "Infosys delivered a strong Q3 performance demonstrating how our differentiated value propositions in enterprise AI, through Infosys Topaz, are consistently driving higher market share," Parekh said. "Clients increasingly view Infosys as their AI partner with demonstrated expertise, innovation capabilities and strong delivery credentials. This has helped them unlock business potential and enhanced value realization."

He also emphasized the human element: "Central to this journey is our commitment to reskill, transform and empower our dedicated human resource pool to drive success in an AI augmented world."

Looking ahead, Infosys guided for fiscal 2026 revenue growth between 3% and 3.5% in constant currency. That's a decent outlook, though perhaps not the blockbuster growth some investors might have hoped for.

Despite the earnings beat, shares fell 3.9% to trade at $18.58 on Thursday. Sometimes the market is a tough crowd.

Analysts, however, saw enough to like. Following the earnings announcement, a couple of firms adjusted their outlook on the stock:

• Stifel analyst David Grossman maintained a Hold rating but raised his price target from $16.50 to $19.
• BMO Capital analyst Keith Bachman kept his Market Perform rating while lifting his target from $18 to $20.

So while the immediate market reaction was lukewarm, the analyst community seems cautiously optimistic about where Infosys is headed.