समाचार Samāchār · Tech & AI · 26 October 2026

Infosys cuts its FY27 outlook as clients ask for more output per rupee

Profit rose 6 per cent and AI work grew 29 per cent in a quarter. Revenue guidance still fell to 1–2 per cent. The shares slipped over 3.5 per cent on Monday.

Infosys has cut its growth outlook for the year. On Friday it lowered FY27 revenue guidance to 1–2 per cent in constant currency, from 1.5–3 per cent. Management pointed to pricing pressure from intense competition and to clients asking for higher productivity. The market gave its verdict on Monday. The shares fell more than 3.5 per cent in early trade.

The quarter itself held up. Consolidated net profit rose 6.2 per cent to ₹7,823 crore. Revenue rose 10.7 per cent to ₹49,244 crore, or $5,145 million. In constant currency that is growth of 1.5 per cent on the year and 1.2 per cent on the quarter. Operating margin stayed at 21 per cent. Margin guidance of 20–22 per cent is unchanged. The board declared an interim dividend of ₹26 a share.

The deal book is strong. Large deals came to $5.2 billion and 62 per cent of that was net new. One mega deal was worth over $2 billion. CEO Salil Parekh said AI revenue reached 10.5 per cent of the total and grew 29 per cent on the quarter. CFO Jayesh Sanghrajka credited cost and efficiency work for stable margins.

Read the two numbers together. AI work is rising fast and headline growth is slowing. Clients are taking the gains of automation as lower prices. That is the AI dividend reaching the buyer. The task for India’s services engine is to move up from billing effort to owning outcomes and building products. The talent that made India the world’s back office can make it the world’s AI workshop. It has to be reskilled at the pace the work is changing.

What a founder takes from it: Services are being repriced around productivity. The deals are still there but each one buys more work for less. Builders who sell outcomes rather than hours will hold their margins.