Infosys cuts FY27 revenue growth guidance to 1‑2% as Q2 results miss expectations
+7 new sources since this summary was written
Infosys reported Q2 FY27 revenue of $5.1 billion, up 1.2% sequentially, and a 6.2% year‑on‑year rise in net profit. The company lowered its full‑year constant‑currency revenue growth outlook to 1‑2% from 1.5‑3%, citing weak North‑American demand, pricing pressure and slower project volumes. The guidance cut triggered a 7% after‑hours drop in the ADR and a 2‑4% fall in the Indian‑listed shares.
Why it matters
The reduced growth outlook narrows the revenue upside for the next fiscal year, meaning investors should expect lower earnings growth than previously forecast. UBS kept a Buy rating with a target of Rs 1,415, while HSBC and Goldman Sachs warned of margin pressure and set lower targets, indicating a more modest upside for the stock.
Key facts
- 1Q2 FY27 revenue was $5.1 billion, up 1.2% sequentially. investmentguruindia.com
- 2Consolidated net profit rose 6.2% year‑on‑year to Rs 7,823 crore. tradingview.com
- 3Operating margin slipped to 21%, down 10 basis points sequentially. tradingview.com
- 4FY27 constant‑currency revenue growth guidance was cut to 1‑2% from 1.5‑3%. investmentguruindia.com
- 5Large deals signed in the quarter totalled $5.2 billion. investmentguruindia.com
- 6UBS maintained a Buy rating with a target price of Rs 1,415. tradingview.com
Summary written by AlphAI AI Desk from 17 of 17 sources. Not investment advice. Figures are as stated by the linked sources.