Infosys Trims FY27 Revenue Guidance to 1.5–3% as Q1 Net Profit Rises 12.2% to ₹7,769 Crore

Infosys, India's second-largest IT services company, closed the first quarter of financial year 2027 with double-digit profit growth and a narrower revenue outlook. Net profit for the April–June quarter rose 12.2% year on year to ₹7,769 crore, while revenue climbed 14% to ₹48,211 crore, helped by financial services and manufacturing clients. Both figures missed the estimates of analysts polled by Bloomberg, who had looked for ₹7,927 crore of net profit and ₹49,152 crore of revenue. Business Standard reported the results and the trimmed guidance on July 23, 2026.

The Bengaluru-headquartered company's American Depository Receipts (ADRs), listed in the United States, fell almost 5% from the previous close after the company trimmed the upper end of its full-year revenue growth target from 1.5–3.5% to 1.5–3% in constant currency.

Guidance trimmed, macros cited

Chief Executive Officer and Managing Director Salil Parekh attributed the narrower outlook to persistent macroeconomic uncertainty and a one-off client event. "The macros continue to remain uncertain," he said at the post-results media briefing. "The upper end of the guidance last time was based on the macroeconomic situation improving, but it has not at the level we thought initially. Also, there was a one-time impact from a client decision during the quarter," Parekh added, without naming the client.

The quarter in figures

• Net profit: ₹7,769 crore, up 12.2% year on year.
• Revenue: ₹48,211 crore, up 14% year on year and 1% sequentially.
• Dollar-basis revenue growth: 2.8% year on year; 2.4% in constant currency.
• Operating margin: 21.1%, up 30 basis points from a year earlier.
• Large deals: total contract value of $3.6 billion signed in the quarter, with four of the six large deals just short of $500 million each.
• Headcount: 328,062 employees at quarter end, down 532 people.
• Attrition: 13%, up from 12.6% in the fourth quarter of FY26.

Verticals and geographies

Financial services, the largest revenue contributor, grew 2.4% in constant currency and is expected to outperform company growth in the coming quarters. Energy, utilities and resources added 1.3% and is also flagged as a growth driver. Retail, still facing headwinds, contracted 1.8%. By region, North America grew 3.2% and Europe 2.8% in constant currency.

AI revenue reaches 8.2% of the topline

Infosys said AI-related revenue accounted for 8.2% of the topline in the quarter, up from 5.5% when the metric was first disclosed in February and growing in double digits sequentially. Parekh has repeatedly framed the addressable market at about $300 billion, spanning AI strategy and engineering, data for AI, process AI, agentic legacy modernisation, physical AI and AI trust.

Large deals: big tickets, slow ramps

The $3.6 billion of large-deal wins is concentrated in cost optimisation and vendor consolidation projects, the type of work every large IT services provider chases in a subdued demand environment. Such contracts are typically slow to ramp, and the competition they attract tends to pressure margins as delivery begins.

Workforce plans for the year

• Infosys maintains its plan to hire 20,000 fresh engineering graduates in FY27.
• 4,000 of those graduates were already hired in the first quarter.
• The company plans to build a cadre of 6,000 forward deployed engineers over the next few years.
• Salary revisions for staff are scheduled for October and January.

Margin pressure flagged for the second half

Chief Financial Officer Jayesh Sanghrajka warned that the operating margin will come under pressure as wage increases land in the second half of the year and the company absorbs the impact of some project losses. The company nonetheless stressed that "our resilient margins and consistent strong cash generation reflect the strength of our business model, disciplined execution and continued focus on operational excellence in a challenging business environment."

What to watch next

Three threads will shape how the trimmed guidance plays out: whether financial services and energy, utilities and resources keep outgrowing the company average; how quickly the $3.6 billion of large deals converts into billed revenue; and whether AI revenue can keep compounding from its 8.2% share of the topline. The October and January wage revisions will show how much of the margin cushion survives the second half.