Infosys' American Depositary Receipt (ADR) fell over 7% following the company's announcement of lowered annual revenue growth guidance for the fiscal year 2027. The Bengaluru-based IT major reported an 11% increase in revenue from operations during the recent quarter, reaching ₹49,244 crore, but revised its revenue growth forecast down to 1%-2% from the earlier 1.5%-3% range.
- Infosys' quarterly revenue rose 11% year-on-year to ₹49,244 crore.
- Sequential revenue growth was 2.14%, from ₹48,211 crore in the previous quarter.
- Annual revenue growth guidance for FY27 lowered to 1%-2%.
- Operating margin guidance maintained at 20.5%-22%.
- Infosys ADR dropped 7.56% to $12.22 in pre-market trading.
- Revenue from artificial intelligence (AI) increased by 29% quarter-on-quarter, comprising 10.5% of total revenue.
- Total contract value (TCV) of large deal wins was $5.2 billion, with 62% net new business.
What were Infosys' recent financial results?
During the latest quarter, Infosys' revenue from operations increased by 11% compared to the same period last year, reaching ₹49,244 crore. Sequentially, revenue grew by 2.14% from ₹48,211 crore. In dollar terms, revenue rose 1.5% sequentially to $5,145 million, and in constant currency terms, it grew by 1.2%. Earnings per share (EPS) showed an 8.7% year-on-year increase in rupee terms.
Why did Infosys lower its revenue growth guidance?
Infosys lowered its annual revenue growth guidance for FY27 to a range of 1%-2%, down from the previous forecast of 1.5%-3%. This adjustment reflects the company’s cautious outlook amid market volatility and economic uncertainties. Despite this, Infosys maintained its operating margin guidance between 20.5% and 22%, indicating confidence in managing costs and operational efficiency.
How did the market react to Infosys’ announcement?
Following the earnings release, Infosys ADR fell sharply by 7.56% to $12.22 in pre-market trading, signaling investor concern over the lowered revenue growth forecast. On the National Stock Exchange, Infosys shares closed marginally higher at ₹1,153.8 per share, up 0.04%, but the earnings announcement came after market hours. Since the start of the year, Infosys shares have declined by 29%, although the stock gained 13% over the past month.
What are the key highlights from Infosys’ business segments?
Infosys reported that revenue from artificial intelligence (AI) solutions accounted for 10.5% of total revenue and grew 29% quarter-on-quarter. The company secured large deal wins totaling $5.2 billion in total contract value, with 62% of this representing net new business. Operating margins remained stable at 21.0%, supported by cost control and operational efficiency measures.
What is Infosys’ current market position?
As of October 23, 2026, Infosys has a market capitalization of ₹4.68 lakh crore. The stock has experienced volatility over the past year, hitting a 52-week high of ₹1,728 on February 3, 2026, and a low of ₹980.40 on September 29, 2026. The company continues to focus on growth areas such as AI while managing operational costs to maintain profitability.
