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Infosys Cuts FY27 Guidance; Q2 Net Profit Rises 6.2% to ₹7,828 Crore
Sentiment: NeutralHigh Priority
What Happened?
Infosys has lowered its revenue forecast for FY27 due to expected growth slowdown in the US and increasing AI deflationary pressures. The company's Q2 net profit rose to ₹7,828 crore.
Key points
- Infosys expects revenue growth of 1-2% in constant currency for FY27, down from 1.5-3%.
- Q2 net profit increased by 6.2% to ₹7,828 crore, while revenues rose 10.7% to ₹49,244 crore.
- AI revenues accounted for 10.5% of total revenue, growing 29% sequentially.
- The company added 4,480 employees, bringing total headcount to 332,542.
- North America revenues fell by 1.5%, while Europe revenues increased by 4.6%.
Key insights
- The reduction in revenue guidance may lead to a reassessment of Infosys' market valuation.
- Increased competition for large deals could pressure profit margins.
- The growth in AI revenues suggests a potential pivot in Infosys' business strategy.
Why it matters
The revised guidance indicates challenges in the IT sector, particularly due to AI pressures and market conditions.
Tags
Entities
Infosys· CompanyUnited States· CountryBengaluru· City
Source
Business Standard
