Business
Infosys cuts FY27 growth outlook to 1-2% after soft quarter
Business Standard·
Infosys cut fiscal 2026-27 revenue guidance to 1-2 percent in constant currency from 1.5-3 percent issued three months ago. September quarter net profit rose 6.2 percent to ₹7,828 crore on ₹49,244 crore revenue. CEO Salil Parekh cited soft volumes and AI pricing pressure. AI sales were 10.5 percent of revenue, growing 29 percent quarter on quarter.
Prism
What It Means For You
- IT investors may reassess Infosys US-listed shares after pre-market drops cited with softer large-deal visibility.
- Clients on cost-optimisation contracts may see longer ramp times for the $5.2 billion deal book Infosys announced.
- Tech workers may watch margin pressure from compensation costs flagged for the second half.
What's Happening
- Infosys lowered FY27 constant-currency growth guidance to 1-2 percent on October 23 results.
- Net profit reached ₹7,828 crore while revenue hit ₹49,244 crore in the September quarter.
- Parekh said volumes were soft and AI is compressing pricing.
Guidance cut despite AI sales
- Large deals totaled $5.2 billion, including one above $2 billion starting in April.
- AI revenue reached 10.5 percent of sales with 29 percent quarter-on-quarter growth.
- Operating margin stayed near 21 percent with mixed currency and cost offsets.
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