Infosys reports modest revenue growth and cuts full‑year outlook as AI drives pricing pressure
Infosys posted 1.5% year‑on‑year revenue growth for its second quarter, while AI‑related revenue jumped 29% sequentially to 10.5% of cash flow. CFO Jayesh Sanghrajka said softer volumes and lower price increases, driven by customers expecting AI‑driven cost savings, weighed on growth. CEO Salil Parekh warned that AI is intensifying pricing competition and will keep margins under pressure. The company lowered its full‑year revenue growth forecast to 1.0‑2.0% and said it will maintain margins around 21% through efficiency initiatives like Project Maximus.
Why it matters
The reduced full‑year guidance signals slower top‑line growth for investors, while the commitment to preserve 21% margins may limit margin expansion. Analysts have downgraded the stock, reflecting concerns about the outlook.
Key facts
- 1Infosys reported 1.5% year‑on‑year revenue growth for the second quarter. theregister.com
- 2AI revenue grew 29% sequentially and now represents 10.5% of incoming cash. theregister.com
- 3The company revised its full‑year revenue growth forecast to 1.0‑2.0%. theregister.com
- 4Infosys aims to keep margins at around 21%. theregister.com
- 5Infosys cited $8.8 billion of new deals won in the first half of its fiscal year, with 68% from net‑new customers. theregister.com
- 6Shares have fallen more than 25% over the past 12 months and analysts downgraded the company. mezha.net
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.