Infosys Ltd reported weak revenue growth in its first quarter of fiscal year 2027 (Q1FY27), leading to a cut in its full-year revenue guidance and a 2.5% drop in its share price on the Bombay Stock Exchange. The company posted a 12.3% year-on-year increase in net profit for Q1FY27 but faced softer deal wins and margin pressures, raising concerns about its growth outlook for the year, according to livemint.com.
The IT major’s June quarter results revealed a sequential drop in net profit and a reduction in the upper end of its FY27 revenue growth forecast. Infosys’ American Depositary Receipts (ADR) also fell more than 5% in US trading on the New York Stock Exchange following the earnings announcement. The company also announced a new CEO, Ashiss Kumar Dash, who will take charge on April 1, 2027, as reported by livemint.com.
The weak performance and guidance cut highlight the challenges Infosys faces amid AI-led pricing pressures and competition from larger peers in the Indian IT sector. This comes at a time when the sector is witnessing rapid adoption of AI technologies, which is impacting traditional revenue streams and margins. The company’s results contrast with some peers that have reported stronger growth and deal pipelines in the same period, underscoring the risks of lagging behind in the evolving market landscape, per livemint.com.
Infosys’ shares closed at ₹1,023.30 on the BSE following the results, while its ADR ended 2.01% lower at $10.71 on the NYSE. The company’s next earnings update will provide further clarity on whether it can regain momentum amid sector-wide AI disruptions, according to livemint.com.