Infosys cuts FY27 revenue growth guidance amid AI pricing pressure

Infosys has lowered its constant-currency revenue growth forecast for fiscal year 2027 to a range of 1% to 2%, down from the previous guidance of 1.5% to 3%. The announcement followed second-quarter results where the company reported a 6.2% year-on-year increase in net profit to ₹7,823 crore.

Despite the lowered outlook, the company secured $5.2 billion in large deal wins, including one contract exceeding $2 billion. Revenue from artificial intelligence services grew 29% sequentially, accounting for 10.5% of total quarterly revenue.

Management attributed the cautious guidance to weaker growth in North America, reduced discretionary spending by clients, and pricing pressures stemming from AI. Clients are increasingly seeking to pass productivity gains from AI tools back to providers through lower costs or outcome-based contracts. The company also noted that upcoming wage hikes may impact margins in the second half of the year.