From BigGo Finance · BigGo Finance · · 1m 40s
Infosys Cuts FY27 Revenue Guidance
Infosys narrows full-year revenue growth to 1%-2% as AI revenue jumps to 10.5% and large deals hit $5.2 billion.
In brief
Infosys narrows full-year revenue growth to 1%-2% as AI revenue jumps to 10.5% and large deals hit $5.2 billion. Infosys reduced FY27 revenue growth guidance to 1%-2% from 1.5%-3% amid AI revenue growth and large deal wins. Originally reported by BigGo Finance.
Q2 FY27 Results
Infosys reported Q2 FY27 constant-currency revenue growth of 1.5% year-on-year and 1.2% sequentially.
AI Revenue Surge
![[Infosys Q2 2027 Earnings Call] Infosys Cuts FY27 Revenue Guidance to 1%-2% as AI Revenue Jumps to 10.5% and $5.2 Billion in Large Deals Lifts Outlook](https://img.biggo.com/h5g0DenVicxsanfiWv80LYqqgc27eCkg08OwjQ1qaoI/fit/1720/0/sm/0/aHR0cHM6Ly9pbWcuYmdvLm9uZS9uZXdzLWltYWdlL2Vhcm5pbmdzX2NhcmQvMjAyNi0xMC9VU19JTkZZXzIwMjYtMTAtMjNfMTc5Mjc2MDM0MS53ZWJw.webp)
AI revenue surged to 10.5% of total revenue from 8.2% in prior quarter, a 29% sequential increase.
Large Deal Wins
Large deal total contract value reached $5.2 billion including a net-new mega deal over $2 billion and $1 billion renewal.
Revenue Guidance Cut
Infosys narrowed full-year revenue growth guidance to 1%-2% from 1.5%-3% citing softer volume and pricing pressure.
CEO and CFO Response
CEO Salil Parekh and CFO Jayesh Sanghrajka defended the cut as a reflection of increased uncertainty.
AI Monetization
AI revenue growth is net new with strong traction in large deals and cyber defense opportunities.
Margin Stability
Operating margin held steady at 21% despite AI investments and talent costs.
Geographic Mix
Financial services, energy and utilities, and manufacturing led growth while retail and high tech lagged.
Q4 Mega Deal Impact
Net-new mega deal will contribute less than 1% to FY27 revenue but ramp-up begins in Q4.
Dividend Increase
Interim dividend raised to INR 26 per share from INR 20.25.
Headwinds for H2
Wage hikes and pricing pressure expected to weigh on margins in second half of FY27.
AI and Product Strategy
Infosys uses six-pillar hexagon strategy for AI with strong growth in agent building and legacy modernization.
The big picture
Infosys reduced FY27 revenue growth guidance to 1%-2% from 1.5%-3% amid AI revenue growth and large deal wins.
