Infosys Stock Update: Share Price Plummets Over 4% on FY27 Guidance Cut
Infosys (INFY) shares fell 4.56% to ₹1,109.95 after cutting FY27 revenue growth guidance to 1-2% from 1.5-3%, citing weak demand and AI disruption. Q2 earnings missed estimates, with net profit up 6% YoY and revenue up 11% YoY. Analysts downgraded targets, citing revenue visibility concerns.
How this was made
The 30-second read
Why it matters
The earnings miss and guidance cut are likely to trigger further selling in Infosys and may spill over to peer Indian IT stocks.
Market read
First‑report of a guidance downgrade for a major emerging‑market tech firm; immediate price impact and sector‑wide implications.
What to watch
Large $5.2 bn deal wins and a 62% net‑new order rate may cushion earnings, and the guidance cut could be a temporary reaction to macro headwinds.
Background
Infosys, India's leading IT services provider, reported Q2 FY27 results that missed consensus and trimmed its FY27 revenue growth outlook, prompting a sharp intraday decline.
Ticker impact
Infosys cut FY27 revenue growth guidance to 1-2% and reported Q2 earnings below estimates, causing a 4.5% intraday drop.
downward pressure as investors price in lower growth outlook
Guidance revisions are material and the stock already fell 4.5% on the news; further downside is probable until outlook improves.
Market effects
Indian IT services sector faces heightened scrutiny as multiple firms confront slowing client spending and AI‑driven pricing pressure.
Indian equity markets may see broader weakness in technology stocks following Infosys' guidance cut.
Global investors tracking emerging‑market tech exposure may reassess exposure to Indian IT firms.
Counterpoint
The 10% sequential AI revenue growth could signal a longer‑term tailwind, making the stock undervalued after the sell‑off.
Key entities
- CompanyInfosys Ltd.
Indian IT services giant listed on NSE and ADR ticker INFY.
