Infosys cuts FY27 revenue growth forecast to 1%-2% despite higher quarterly profit

what happened

Indian IT services firm Infosys reported results for the quarter ended September 2026. Consolidated net profit reached 7,823 crore rupees, up 6.2% from a year earlier. Revenue from operations rose 10.2% to 49,244 crore rupees. AI-related work made up 10.5% of revenue, and large deals during the quarter totalled 5.2 billion dollars.

However, the company trimmed its FY27 revenue growth forecast to 1%-2%, below the earlier 1.5%-3% range and deeper than many investors had expected. CFO Jayesh Sanghrajka linked the revision to pricing pressure from intense competition and client demands for higher productivity. Operating margin was 21%. The board approved an interim dividend of 26 rupees per share, with November 3 set as the record date.

Shares in Mumbai closed 0.3% higher before the results, at 1,154.50 rupees. The American depositary receipts fell 6.5% to 12.35 dollars after the announcement.

why it matters

For the IT services sector, the guidance cut matters more than the profit gain. It points to pricing pressure and cautious client spending across the industry. Infosys shares are down 25% over one year and remain about a third below their 52-week high recorded in February 2026.

market impact

Infosys shares and ADRs: weaker guidance pressures the stock, and sector peers face the same pricing and demand concerns

tags

instruments