BENGALURU, July 23, 2026, 19:41 (IST)
- Guidance for fiscal 2027 constant-currency revenue was lowered to a range of 1.5% to 3.0%.
- Initial estimates show that AI revenue for the June quarter is roughly $417 million, representing a 49% increase from December.
- The U.S. ADR was down 3.8%, changing hands at $10.52 as of 19:26 IST.
Infosys Limited NSE:INFY reduced the upper end of its fiscal 2027 revenue forecast on Thursday, an update that eclipsed a significant increase in its reported AI revenue proportion. An early estimate places AI revenue for the June quarter at about $417 million, marking a rise of roughly 49% compared to the December quarter.
The division is significant. Dollar revenue reported for those quarters remained almost unchanged. Excluding the AI segment, revenue is estimated to have declined by 3.2%.
India’s cash market was already closed ahead of the 3:45 p.m. earnings announcement. Regular trading on the NSE concludes at 3:30 p.m. IST. The company’s U.S. ADR subsequently dropped 3.8% to $10.52.
The comparison across the last two quarters reveals the main areas of growth.
| Metric | December quarter | June quarter | Change |
|---|---|---|---|
| Reported revenue | $5.099 billion | $5.082 billion | -0.3% |
| AI portion of revenue | 5.5% | 8.2% | +2.7 percentage points |
| Projected AI revenue | $280 million | $417 million | +49% |
| Projected non-AI revenue | $4.819 billion | $4.665 billion | -3.2% |
Initial estimates are calculated by multiplying stated revenue with reported AI shares. These figures rely on a uniform AI definition and do not factor in acquisitions or currency changes.
Revenue for the quarter increased by 14% to 482.11 billion rupees, ending approximately 0.3% under the consensus forecast from analysts. Net profit rose 12.2% to 77.69 billion rupees, falling short by around 0.8%.
Revenue under IFRS totalled $5.082 billion. Constant-currency growth stood at 2.4% compared to a year earlier and 1.0% from the previous quarter. The operating margin was 21.1%, and free cash flow amounted to $955 million.
Bookings from large deals reached $3.6 billion, with 61% representing net new contracts. This figure marks a 12.5% increase compared to March but reflects a 5.3% decline from the same period last year.
Infosys revised its constant-currency growth forecast to a range of 1.5%-3.0%, down from its previous guidance of 1.5%-3.5%. The midpoint of the projection slipped by 25 basis points. Guidance for operating margin remains unchanged at 20%-22%.
Chief Executive Salil Parekh stated, “AI momentum is now rapidly converting into revenue.” He noted that the previous top range was based on expectations of a more favourable economic environment. That rebound has yet to take place. Infosys
Competitors Tata Consultancy Services Limited NSE:TCS and HCL Technologies Limited NSE:HCLTECH surpassed estimates for the quarter earlier. Both firms benefited from financial-services demand and a softer currency. The difference puts added pressure on Infosys to deliver on deal conversions.
Infosys has appointed Ashiss Kumar Dash as its CEO-designate, with his transition scheduled for April 2027. HFS Research CEO Phil Fersht described Dash as “a safe, execution-focused appointment.” Reuters
The NSE stock finished 0.45% down at 1,047.40 rupees ahead of the results. It declined 3.2% since last Thursday, compared to a 0.8% drop for the Nifty 50. On Thursday, the benchmark index slipped 0.53% as Brent crude surpassed $98.
The initial local price decision will come on Friday. Investors are set to monitor estimate reductions, deal conversion rates, and AI updates in the coming week. The drop in ADRs provides a preliminary indication, though after-hours trading could change this.
The outlook is uncertain. Accelerated AI adoption or a rebound in client expenditure may boost growth, while additional project setbacks, tougher pricing conditions, or currency volatility could worsen the downturn.
