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

Business & Markets · 23 October 2026 · India
URL: https://connectthedots.news/event/2026-10-23-infosys-cuts-fy27-revenue-growth-guidance-to-1-2-as-ai-reshapes-it

> Infosys lowered its full-year revenue growth forecast to 1-2% in constant currency while profit rose 6.2% to Rs 7,823 crore, and its US-listed shares fell about 7% before the open.

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%. [1][2][3]

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. [1][2]

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. [1]

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. [2]

## Who was involved

- [Infosys](https://connectthedots.news/org/infosys): Cut its FY27 revenue growth guidance to 1-2% and reported Q2 results [1][2]
- [Salil Parekh](https://connectthedots.news/person/salil-parekh): Described AI-driven productivity pressure as transitional [1]
- [Jayesh Sanghrajka](https://connectthedots.news/person/jayesh-sanghrajka): Presented the Q2 margins and the ramp-up of a large new deal [1][2]

## Sources

1. Dataquest (DQ India), "Infosys Q2 FY27 results: AI revenue surges as growth outlook weakens", 23 October 2026: https://www.dqindia.com/news/infosys-q2-fy27-results-ai-revenue-surges-as-growth-outlook-weakens-12742451
2. Upstox News, "Infosys ADR falls over 7% as IT major lowers annual revenue growth guidance; everything investors need to know", 23 October 2026: https://upstox.com/news/market-news/stocks/infosys-adr-falls-over-7-as-it-major-lowers-annual-revenue-growth-guidance-everything-investors-need-to-know/article-202325/
3. Analytics Insight, "Infosys Q2 FY27 Results: Net Profit Rises 6.2%, AI Revenue Jumps", 23 October 2026: https://www.analyticsinsight.net/business/infosys-q2-fy27-results-net-profit-rises-62-ai-revenue-jumps