Infosys cuts FY27 growth guidance to 1% to 2%

Infosys cut its fiscal 2027 revenue growth guidance to 1% to 2% in constant-currency terms after reporting softer business volumes and pricing pressure, even as quarterly revenue rose 10.7% year over year. The Bengaluru-based IT services company had previously forecast growth of 1.5% to 3%. Its second-quarter results covered the three months ended September 2026. Revenue for the quarter was Rs 49,244 crore, while consolidated net profit increased 6.2% to Rs 7,823 crore. Revenue grew 1.5% in constant-currency terms. Operating margin was 21%, and Infosys retained its fiscal 2027 margin guidance of 20% to 22%. Chief Financial Officer Jayesh Sanghrajka attributed the revised outlook to softer volumes, pricing pressure amid competition and higher client productivity expectations. He also cited weaker discretionary spending in retail and high tech. In the quarter, revenue in constant-currency terms fell 7.7% year over year in retail and 17.3% in high tech. Infosys reported total contract value of $5.2 billion in large deal wins, up from $3.1 billion in the year-ago quarter. One deal was valued at more than $2 billion, and the company said 62% of deal value came from net-new...