Infosys shares fall 4% after FY27 revenue growth guidance cut
Infosys shares dropped 4% after cutting FY27 revenue growth guidance to 1-2% from 1.5-3% due to sluggish client spending. Q2 revenue was ₹49,244 crore, up 1.5% y-o-y, with net profit increasing 6.2%. Goldman Sachs and Citi noted subdued demand and maintained neutral ratings with target prices of ₹1,000 and ₹1,105, respectively.
How this was made
The 30-second read
Why it matters
The guidance cut is a fresh, material development that directly moved the stock, offering a clear trading trigger.
Market read
Guidance downgrade drives immediate price action; sector peers may be re‑priced.
What to watch
Strong TCV of over $5B and AI growth potential may mitigate downside risk.
Background
Infosys reported modest September-quarter revenue growth and profit increase, but lowered FY27 outlook amid client spending slowdown.
Ticker impact
Infosys cut FY27 revenue growth guidance to 1-2% constant currency, prompting a 4% share decline.
downward pressure as investors price in slower growth
The new guidance is a primary disclosure and directly caused the 4% drop; no offsetting catalyst was mentioned.
Market effects
May weigh on broader Indian IT services sector as peers face similar demand slowdown.
Potential drag on Indian market indices, especially NIFTY IT.
Limited global impact beyond investors with exposure to Indian tech stocks.
Counterpoint
If the mega deal materializes, it could offset the guidance cut and support a rebound.
Key entities
- companyInfosys
Indian IT services firm
- analystGoldman Sachs
Provided commentary on guidance and maintained neutral rating
