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Infosys ADRs fall 7.5% premarket after trimming annual revenue growth forecast

Infosys cut its FY2027 revenue growth guidance to 1%-2% even as September-quarter net profit rose 6.2%, sending its ADRs lower before the open.

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what happened

Infosys ADRs dropped 7.5% in premarket trading on Friday, to $12.25. The Bengaluru-based firm lowered its revenue growth outlook for the fiscal year ending March 2027 to 1%-2% from 1.5%-3%, according to Moody's. Most analysts had expected a smaller cut, with the upper end falling only to 2.5%.

Quarterly results were stronger than expected. Revenue rose 10.2% year on year to Rs.49,244 crore, and net profit climbed 6.2% to Rs.7,823 crore. AI-related revenue reached 10.5% of the total. CEO Salil Parekh said the company won large deals worth $5.2 billion, including one mega deal above $2 billion.

Investors remain worried that clients are cutting spending on major IT projects. The sector has struggled with weak demand, and AI companies such as Anthropic and OpenAI are adding competitive pressure.

why it matters

For markets, the weak forecast outweighed the solid earnings. Indian IT shares often respond more to expectations for client demand than to current profit, so the sector will watch upcoming guidance updates closely.

market impact

Infosys ADR and Indian IT services: weaker revenue outlook pressures the shares despite profit growth

tags

EarningsStockIndia

instruments

INFYInfosys ADRIndian IT services

sources

  1. Infosys ADRs plunge 7.5% in pre-market after company trims annual revenue growth forecast; Q2 net profit rises 6% — Moody's, 23 October 2026 at 17:45 UTC
  2. Infosys ADRs plunge 7.5% in pre-market after company trims annual revenue growth forecast — Moody's, 23 October 2026 at 17:45 UTC

prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.

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