Infosys cuts FY27 revenue outlook as quarterly profit rises 6%

The Bengaluru-based IT services firm reported operating revenue of Rs 49,244 crore, up 11% from a year earlier. In dollar terms, revenue reached $5.15 billion, up 1.3% year-on-year, while constant-currency growth was 1.5%.

Profit growth lagged brokerage estimates, which had pointed to an 8% increase, even though revenue came in close to projections. Operating margin held at 21%, slightly below the 21.1% seen in the previous quarter, and the company kept its full-year margin target at 20-22%.

Infosys declared an interim dividend of Rs 26 per share, with November 3, 2026 set as the record date.

Large deal activity remained robust despite the softer outlook: total contract value for new deals came to $5.2 billion, including one contract worth more than $2 billion. CEO Salil Parekh said the bookings reinforced the company’s standing as a partner for complex transformation projects.

Artificial intelligence-related revenue climbed 29% from the prior quarter and now makes up 10.5% of total sales, which Parekh linked to growing enterprise demand for automation and AI adoption.

Performance varied sharply by sector. Life sciences led with 32.5% constant-currency growth, while hi-tech revenue fell 17.3% and retail dropped 7.7%. North America, Infosys’s largest market at 54.6% of revenue, contracted 1.5%, while Europe grew 4.6%.

Headcount rose by 4,480 to 332,542 employees, and voluntary attrition eased to 12.7% from 13% in the prior quarter.

Why it matters: As one of India’s largest IT exporters, Infosys’s results are a gauge of global corporate technology spending. A trimmed revenue outlook points to continued caution among Western clients, which can weigh on Indian equity indices and signal softer demand for outsourced tech services more broadly.

Source: Economic Times Markets