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2 clusters · 21 sources · 3 days · First seen · Last updated

Infosys revenue guidance and AI impact

Overview

Infosys has lowered its revenue growth guidance for the fiscal year ending March 2027 to a range of 1%–2% in constant currency, down from the previous estimate of 1.5%–3%. The company attributed this revision to a challenging business environment, including softer volumes in the retail and high-tech sectors, as well as pricing pressures.

Management noted that clients are increasingly demanding productivity gains driven by artificial intelligence, which is challenging traditional staffing-based billing models. While AI revenue grew 29% sequentially to account for 10.5% of total revenue, weakness in the North American market—where revenue declined by 1.5%—impacted the overall outlook.

Despite the lowered guidance, the company reported a 6.2% year-on-year increase in consolidated net profit for the second quarter ending September, reaching ₹7,823 crore. Additionally, Infosys secured $5.2 billion in large deal total contract value during the quarter, including one contract exceeding $2 billion.

Management further noted that clients are seeking to pass productivity gains from AI tools back to providers through lower costs or outcome-based contracts. The company also indicated that upcoming wage hikes may impact margins in the second half of the year.

Entities

Infosys · Jayesh Sanghrajka · Salil Parekh · NSE · Bansal Wire Industries Limited

Timeline

  1. [BUSINESS] 11 sources
    Infosys cuts FY27 revenue growth guidance amid AI pricing pressure

    Infosys reduced its FY27 revenue growth guidance to 1–2% due to weak North American demand and AI-driven pricing pressures, despite securing $5.2 billion in new large deals.

  2. [BUSINESS] 13 sources
    Infosys lowers FY27 revenue growth guidance amid AI shifts

    Infosys lowered its FY27 revenue growth guidance to 1%–2% due to market uncertainty and AI-driven shifts, despite a 6.2% rise in Q2 net profit and strong AI revenue growth.

Sources

analyticsindiamag.com · appstimes.in · banglamirrornews.com · businessconnectindia.in · dnaindia.com · econoTimes.com · energymag.gr · finchannel.com · hrkatha.com · latestly.com · m.businesstoday.in · millenniumpost.in · newindianexpress.com · news18.com · newsable.asianetnews.com · stratnewsglobal.com · techenet.com · timesnownews.com · toray.co.jp · up18news.com · web3wire.org

This summary has been updated 1 time: see revision history