Infosys Cuts Fiscal 2027 Revenue Growth Outlook to 1% to 2%

Infosys lowered its fiscal 2027 revenue-growth outlook to 1% to 2% after posting 1.5% year-over-year constant-currency growth in the quarter ended Sept. 30, narrowing expectations for the year ahead.

The new range is down from the 1.5% to 3% forecast the company set in July. The lower end fell by half a percentage point and the upper end by one point. Infosys kept its operating-margin target at 20% to 22%.

Revenue for the quarter was $5.145 billion, up 1.3% from a year earlier in reported dollars and 1.5% in constant-currency terms. Revenue increased 1.2% sequentially in constant currency. Operating margin was 21%.

AI revenue represented 10.5% of revenue and grew 29% quarter over quarter, CEO and Managing Director Salil Parekh said. “Our AI revenue was at 10.5% and grew 29% quarter-on-quarter,” Parekh said.

Large-deal total contract value reached $5.2 billion, with 62% classified as net new. Infosys also cited a mega deal valued at more than $2 billion.

Free cash flow was $928 million, equal to 113.3% of net profit. CFO Jayesh Sanghrajka said the figure “underscores the financial strength of the business.”

The board declared an interim dividend of ₹26 per share. The record date is Nov. 3, and payment is scheduled for Nov. 11.