Infosys cuts FY27 outlook to its weakest in seven years despite profit growth
Infosys reported a 6.2% year-on-year rise in Q2 net profit, but lowered its full-year growth guidance to 1-2%, citing AI pressure and US labour rules.
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what happened
According to Moody's, Infosys reported Q2 net profit up 6.2% year on year at 7,823 crore, with revenue at 49,244 crore, up 10.7%. Profit slightly missed analyst estimates, and quarter-on-quarter growth was only 0.7%.
The company cut its constant-currency growth guidance for fiscal 2027 to 1-2%, its weakest estimate in seven years, down from 1.5-3%. The board proposed an interim dividend of 26 per share, 13% higher than a year earlier.
Chief executive Salil Parekh pointed to uncertainty in the macro environment, ongoing wars, interest rate increases and the 10-year yield nearing 5%. He also flagged an offshoring impact of about 1% as the US tightens labour rules.
why it matters
The result matters for the IT services sector. A weak outlook from Infosys, alongside cautious guidance from HCLTech and Wipro, points to pressure on demand and margins across the industry. According to the source, the US-listed ADRs fell more than 8% in pre-market trading.
market impact
Indian IT services and Infosys ADR: weak guidance and competitive pressure weigh on the sector
tags
instruments
sources
- Infosys Q2 Net Profit Rises 6.2%, Projects Weakest Growth in 7 Yrs — Moody's, 24 October 2026 at 04:14 UTC
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