Infosys Shares Slide as IT Giant Slashes Fiscal 2027 Revenue Outlook
Infosys stock drops following a downward revision to its fiscal 2027 revenue growth forecast, driven by North American market weakness and AI pricing shifts.
POLICY WIRE — Bengaluru, India — Shares of the Indian technology services provider Infosys experienced a 2.7% decline during Monday’s early trading session. The downturn follows the company’s decision to significantly reduce its revenue growth projections for the 2027 fiscal year.
The firm adjusted its constant currency revenue growth guidance to a range of 1% to 2%, down from its previous estimate of 1.5% to 3%. This revision proved more aggressive than market expectations, as many analysts had anticipated a more modest reduction to the upper end of the forecast.
The company cited persistent weakness within its North American operations as a primary factor behind the lowered outlook. These regional challenges have effectively overshadowed stronger performance metrics in other areas of the business.
Despite the revenue adjustment, Infosys maintained its operating margin guidance, which remains set between 20% and 22%. The company reported muted revenue growth during the September quarter, highlighting the ongoing difficulties faced by major Indian IT firms as they navigate shifting pricing models driven by the rise of artificial intelligence.
While these industry leaders are actively competing to capture a larger portion of global AI spending, they are simultaneously integrating the technology to enhance internal operational efficiency. The latest forecast update reflects the broader pressures currently impacting the sector.
Reporting by Policy-Wire (PW)
