Infosys cuts FY27 revenue growth guidance to 1–2% on weak demand

what happened

Indian IT services firm Infosys has reduced its revenue growth guidance for fiscal 2027 to 1–2%, down from the earlier 1.5–3% range. The company pointed to lingering uncertainty, softer volumes, pricing pressure and weakness in certain sectors. Its EBIT margin guidance of 20–22% was unchanged, according to information published by TradingView.

CEO Salil Parekh said AI accounted for 10.5% of second-quarter revenue, up 29% sequentially. He also cited a healthy large-deal pipeline and strong free cash flow, and said mega deals are expected to add 1 percentage point to revenue growth next year. Demand held up in financial services, energy and utilities, and manufacturing, while retail and high-tech were weaker.

Group CFO Jayesh Sanghrajka linked the revised outlook to a softer second quarter and higher productivity expectations. He warned that the second half would bring headwinds from compensation costs and continued pricing pressure.

why it matters

For markets, the cut signals a slowdown in India's IT services sector. A lower revenue outlook can weigh on Infosys shares and the Nifty IT index, while weak spending in retail and high-tech raises concerns for peers serving similar clients.

market impact

Indian IT sector: lower revenue guidance pressures Infosys and the Nifty IT index

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