Infosys Lowers Revenue Guidance Amid AI Growth and Pricing Pressures
Infosys (INFY) has revised its full-year revenue growth guidance down to 1% to 2% in constant currency terms following a second-quarter fiscal year 2027 performance that saw softer discretionary spending in the retail and high-tech sectors. Despite this slowdown, the company reported significant momentum in artificial intelligence, with AI-related revenue growing 29% sequentially to represent 10.5% of total sales. The company is leveraging large deal wins to provide long-term visibility, securing $5.2 billion in total contract value (TCV) during the second quarter. This brings the first half of the fiscal year's total large deal wins to $8.8 billion, a 28% increase year-on-year. While competitive intensity and client demands for AI productivity gains are pressuring pricing, Infosys maintains its operating margin target of 20% to 22%.
Tickers: $INFY
Topics: artificial intelligence earnings report large deal wins revenue guidance
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