# Infosys revenue guidance and AI impact > Developing situation record from CLSTR: https://clstr.news/situations/infosys-revenue-guidance-and-ai-impact > Updated: 2026-10-25T14:03:25.000Z. Sources: 21. Developments: 2. 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. ## Timeline ### 2026-10-25: 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. 11 sources. https://clstr.news/cluster/infosys-shares-fall-following-lowered-revenue-growth-forecast ### 2026-10-23: 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. 13 sources. https://clstr.news/cluster/bansal-wire-industries-reports-38-rise-in-q2-net-profit --- Cite as: Infosys revenue guidance and AI impact. CLSTR, https://clstr.news/situations/infosys-revenue-guidance-and-ai-impact