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Infosys revenue guidance and AI impact

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2026-10-26 04:58 UTC → 2026-10-26 17:26 UTC · added ~~removed~~

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.~~ September, reaching ₹7,823 crore. Additionally, Infosys secured $5.2 billion in large deal total contract value during the ~~quarter.~~ 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.

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