Infosys cuts FY27 growth outlook to 1–2% as AI reshapes demand
AI is shifting Indian IT work from hours toward outcomes
Overview
Infosys cut its revenue-growth forecast to 1% to 2%, from 1.5% to 3%, but kept its at 20% to 22%. Clients are spending carefully, and large contracts may take time to produce revenue. September-quarter revenue rose 10.7% in rupees to ₹49,244 crore, but only 1.5% , showing weaker underlying demand.
AI is changing India’s traditional IT-services model. AI revenue reached 10.5% of Infosys’s total and grew 29% in one quarter. But automation can reduce paid coding hours and prices, especially on . Clients may pay instead for results, software platforms or subscriptions. Infosys won $5.2 billion in , including one worth more than $2 billion, but turning those wins into growth remains difficult. Workers will need new skills, while companies may hire fewer routine coders and more AI, cloud, engineering and industry specialists.
Timeline
Infosys highlighted AI revenue, reskilling and capability building in its transition
Infosys said it was advising enterprises on and building as AI revenue grew. The results also underscored the importance of converting into revenue while adapting the company’s to changing technology demand.
Infosys cut FY27 growth guidance to 1% to 2% while retaining its margin target
Infosys lowered its FY27 constant-currency revenue-growth guidance from 1.5% to 3% to 1% to 2% and retained its 20% to 22% operating-margin range. The change followed muted September-quarter growth and reflected cautious discretionary spending, evolving demand and changes in technology spending linked to AI. The outcome put pressure on Infosys to offset lower through higher-value engineering, cloud, data and AI-integration services.
Infosys won $5.2 billion in large deals, including a mega deal above $2 billion
Infosys reported $5.2 billion in large-deal during the quarter, with 62% coming from . The wins included a mega deal worth more than $2 billion, while quarterly constant-currency revenue growth was 1.5% year over year.
Infosys reported September-quarter revenue of ₹49,244 crore despite subdued constant-currency growth
Infosys reported September-quarter revenue of ₹49,244 crore, up 10.7% year on year in rupee terms. After adjusting for currency, revenue grew only 1.5% year on year and 1.2% sequentially, making the a clearer measure of underlying demand. The gap showed how a strong rupee-denominated headline could coexist with weak organic momentum in technology services.
Infosys reported AI revenue at 10.5% of revenue after 29% sequential growth
Infosys said accounted for 10.5% of total revenue in the September quarter and grew 29% sequentially. The company also said it was advising enterprises on AI strategy and building related domain and technology capabilities.
Infosys narrowed FY27 growth guidance to 1.5% to 3%
After the June quarter, Infosys reduced the upper end of its FY27 constant-currency growth range from 3.5% to 3%. The company cited continuing macroeconomic uncertainty and a client-related impact while retaining its 20% to 22% . The revision showed that stronger deal activity was not yet translating into a broad recovery in client spending.
Infosys set FY27 growth guidance at 1.5% to 3.5% in constant currency
Infosys began expecting of 1.5% to 3.5% and an operating margin of 20% to 22%. The outlook depended on a gradual recovery in and conversion of its into revenue. Management also identified AI services as an opportunity, while warning that AI productivity could affect the amount of work required for some engagements.