Infosys Cuts Lower End of FY27 Revenue Growth Guidance to 1.5-3.5%

Infosys Updates Revenue Growth Guidance Amid Industry Challenges

Infosys Ltd, India's second-largest IT services company, announced on April 23 its revenue growth guidance for FY2026-27, setting a range of 1.5 percent to 3.5 percent. This update comes in comparison to the previously forecasted 3-3.5 percent growth for FY26. The revised guidance reflects the company's cautious outlook amidst industry-wide challenges.

The Bengaluru-based services company had previously revised its revenue growth guidance to 3-3.5 percent for FY2025-26 in January. This revision is in line with similar commentary from peer companies, including Tata Consultancy Services and HCLTech, which are also facing soft discretionary spending and macroeconomic challenges in their major revenue-contributing geographies.

Despite these challenges, Infosys and its peers have reported consistent pipelines. The software major has been facing tepid demand, which has impacted its revenue growth. Deal momentum and demand commentary for the quarter were as follows:

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The company's performance in FY26 was marked by a growth of 3.1 percent, with strong large deal wins of $14.9 billion. Infosys's enterprise AI value proposition and market share gains in large transformation opportunities have been key drivers of this growth. The company's AI services strategy, which spans six areas, has gained traction in the market. Additionally, strong ecosystem AI partnerships have enabled clients to derive value from AI.

Under the leadership of CEO and MD Salil Parekh, Infosys has positioned itself uniquely in the market with its AI First value framework and differentiated Topaz Fabric. These offerings have allowed the company to deepen client trust and gain a greater share of the market.