Infosys shares experienced a surge of over 3% following the announcement that the company's board of directors will be discussing a buyback proposal this week. The board meeting, scheduled for September 11, 2025, will address the potential repurchase of fully paid-up equity shares, in accordance with regulations set by the Securities and Exchange Board of India (SEBI).

The announcement spurred positive market reaction, with Infosys shares gaining 3.61% to reach Rs 1484.35. This potential buyback occurs against a backdrop of recent underperformance in the IT sector, influenced by a tepid macroeconomic environment and tariff uncertainties. Over the past year, Infosys shares have fallen nearly 25%.

This wouldn't be Infosys' first buyback. In 2022, the company executed a ₹9,300 crore share buyback via the open market, at a maximum price of ₹1,850 per share. The company's decision to consider another buyback indicates a strategic move to enhance shareholder value and investor confidence.

Despite the underperformance in the stock market, Infosys has demonstrated steady financial results. The company reported a 9% year-over-year growth in consolidated net profit for the first quarter, with revenue increasing by 8% compared to the previous year. Furthermore, Infosys raised its lower end of revenue growth guidance, pegging it at 1-3% in constant currency for FY26.

Operating margin for the April-June quarter stood at 20.8%, a slight decline of 0.3% year-over-year and 0.2% quarter-over-quarter. However, the company anticipates operating margins to remain within the 20-22% range for the remainder of FY26. Segment-wise, financial services, a dominant sector for Infosys, experienced a constant currency growth of 5.6% year-over-year, while the manufacturing division saw a robust increase of 12.2%. Retail growth remained flat at 0.4%, and the hi-tech business grew marginally by 1.7%.

The buyback plan aligns with Infosys' history of returning value to shareholders. The company's last buyback was in 2022, worth Rs 9,300 crore at Rs 1,850 per share. The outcome of the board meeting on September 11 will be communicated to stock exchanges following its conclusion.