Infosys cuts FY27 revenue growth guidance to 1-2% as AI reshapes IT demand; US-listed shares fall

IT services company Infosys on 23 October cut its revenue growth guidance for the 2026-27 financial year to 1-2% in constant currency,. It kept its operating margin guidance at 20-22%.Sources:1Dataquest (DQ India): Infosys Q2 FY27 results: AI revenue surges as growth outlook weakens, Dataquest (DQ India), 23 October 2026 (source, opens in a new tab)2Upstox News: Infosys ADR falls over 7% as IT major lowers annual revenue growth guidance; everything investors need to know, Upstox News, 23 October 2026 (source, opens in a new tab)3Analytics Insight: Infosys Q2 FY27 Results: Net Profit Rises 6.2%, AI Revenue Jumps, Analytics Insight, 23 October 2026 (source, opens in a new tab)

For the quarter to 30 September, consolidated net profit rose 6.2% from a year earlier to Rs 7,823 crore, and revenue from operations rose 11% to Rs 49,244 crore. Dollar revenue was US$5.145 billion, up 1.2% from the previous quarter in constant currency, and the operating margin was 21%. The board declared an interim dividend of Rs 26 a share.Sources:1Dataquest (DQ India): Infosys Q2 FY27 results: AI revenue surges as growth outlook weakens, Dataquest (DQ India), 23 October 2026 (source, opens in a new tab)2Upstox News: Infosys ADR falls over 7% as IT major lowers annual revenue growth guidance; everything investors need to know, Upstox News, 23 October 2026 (source, opens in a new tab)

AI-related revenue rose 29% from the previous quarter to 10.5% of the total. Large-deal wins reached US$5.2 billion, including a net-new contract worth more than US$2 billion over seven years, which the company said will ramp up only towards the end of the fourth quarter. Chief executive Salil Parekh described productivity-related pricing pressure as a transitional part of the shift to AI.Sources:1Dataquest (DQ India): Infosys Q2 FY27 results: AI revenue surges as growth outlook weakens, Dataquest (DQ India), 23 October 2026 (source, opens in a new tab)

The results came after Indian markets closed. Infosys's American depositary receipts fell about 7.6% to US$12.22 in US pre-market trading. Chief financial officer Jayesh Sanghrajka said the company "delivered operating margins of 21.0% in Q2 amidst heightened volatility." The stock had fallen 29% so far this year before the results.Sources:2Upstox News: Infosys ADR falls over 7% as IT major lowers annual revenue growth guidance; everything investors need to know, Upstox News, 23 October 2026 (source, opens in a new tab)