India's second-largest IT services company, Infosys Ltd, on October 23, revised its revenue growth guidance for FY2026-27 to 1-2 percent in constant currency terms, compared with its earlier forecast of 1.5-3 percent. The company maintained its operating margin guidance.
In the June quarter, Infosys had narrowed its full-year revenue growth guidance to 1.5-3 percent from 1.5-3.5 percent, citing macroeconomic uncertainty and its assessment of demand for the remainder of the financial year.
The latest outlook comes as India's IT services companies continue to navigate cautious discretionary spending, evolving client demand and the impact of artificial intelligence (AI) on technology spending.
During the previous quarter, CEO Salil Parekh had flagged uncertainty in the macroeconomic environment while pointing to opportunities from vendor consolidation and large transformation programmes.
“We had strong large deals of $5.2 billion, including a mega deal of over $2 billion, reinforcing our position as a trusted partner in the marketplace when clients embark on large and complex transformation programs. Our AI revenue was at 10.5% and grew 29% quarter-on-quarter. As enterprises move to AI adoption at scale, the strong growth in AI revenues is a recognition of our differentiated market positioning and client confidence,” said Salil Parekh, CEO and MD. “We are advising some of the largest global enterprise on their AI strategy and continue to invest in deep domain and technology capabilities to bring new ideas and an integrated ecosystem to help businesses unlock AI value at scale,” he added.