Infosys stock falls nearly 3% after Q2 earnings miss, guidance cut; brokerages see margin pressure
Infosys shares fell 2.8% after Q2 earnings missed expectations and FY27 revenue guidance was cut. UBS sees 23% upside, while HSBC warns of margin pressure. Revenue grew 1.2% sequentially, below estimates, and operating margin slipped to 21%. Infosys' market cap is ~Rs 4.5 lakh crore.
How this was made

The 30-second read
Why it matters
The earnings miss and guidance cut are likely to trigger short‑term selling, especially among margin‑sensitive investors, while the AI revenue growth and large new deals could offer a longer‑term catalyst.
Market read
The earnings surprise and guidance downgrade are the primary drivers of the stock's near‑3% drop, with potential spill‑over to the broader Indian IT sector.
What to watch
The sequential increase in AI services revenue (29%) and large deal wins ($5.2 bn) may provide upside beyond the near‑term miss.
Background
Infosys, a leading Indian IT services firm, posted Q2 results with revenue growth below expectations and trimmed FY27 guidance, prompting a stock decline.
Ticker impact
Infosys reported Q2 earnings miss and cut FY27 revenue guidance, causing the stock to fall nearly 3% on the day.
downward pressure as investors price in weaker growth and margin concerns
The earnings surprise and guidance cut are fresh, material facts for a large-cap IT services firm, and the stock already reacted with a 2.8% decline.
Market effects
Other Indian IT stocks may face pressure as the earnings miss highlights margin risks in the sector.
Nifty IT index fell 1.3%, contributing to broader weakness in the Indian market.
Limited; the news mainly affects Indian equities and global investors with exposure to Infosys ADRs.
Counterpoint
If the $2 billion AI‑related deal materialises, it could offset margin pressure and support a rebound.
Key entities
- companyInfosys
Indian IT services giant reporting Q2 earnings and FY27 guidance cut.
- brokerageUBS
Maintained Buy rating with 23% upside target.
- brokerageHSBC
Retained Hold rating, flagged margin risks.
