Infosys cuts FY27 revenue guidance to 1%-2% as AI services reach 10.5% of revenue

Infosys lowered its revenue growth guidance for FY27 to 1%-2% from 1.5%-3%, the Bengaluru-based company said on Friday, October 24, after reporting results for the quarter ended September 2026. The cut, sharper than the 1.5%-2.5% range some investors had expected, follows an earlier reduction in the June quarter, when the company trimmed its forecast from 1.5%-3.5% to 1.5%-3%.

Chief financial officer Jayesh Sanghrajka attributed the revision to competitive intensity and customer demands for productivity. "We are seeing pricing pressures on intense competition and customers asking for higher productivity. That's reflecting in our revised guidance," he said. He said operating margins held at 21.0% in the quarter amid "heightened volatility", supported by cost and operational efficiency measures.

Consolidated net profit rose 6.2% year on year to ₹7,823 crore from ₹7,364 crore, while revenue from operations grew 10.2% to ₹49,244 crore from ₹44,490 crore. Chief executive and managing director Salil Parekh said the company won large deals worth $5.2 billion during the quarter, including one valued at more than $2 billion. AI-related services accounted for 10.5% of total revenue and grew 29% quarter on quarter, the company said.

The board approved an interim dividend of ₹26 per share, equal to 500% of face value, with a record date of November 3 and payment to be completed by November 11. Infosys shares closed 0.3% higher at ₹1,154.50 on the BSE on Friday before the results were announced after market hours; its American depositary receipts fell 6.5% to $12.35 following the release. The stock is about 33% below its 52-week high of ₹1,727.85, set in February 2026, and touched a 52-week low of ₹980.30 in September 2026.

Jigar S Patel, senior manager for technical research at Anand Rathi Share and Stock Brokers, said the stock was struggling near its previous swing high of ₹1,193.50 and closed below it, with ₹1,195 the key resistance level and ₹1,050 a support. Patel said long-term investors may consider accumulating the stock on dips for portfolio allocation, but that fresh short-term trading positions are not advisable until a sustained breakout above ₹1,195 confirms a stronger recovery. The views are those of the analyst and not of Token Times; investors should consult certified advisers.