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Informist, Thursday, Jul. 23, 2026

 

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--Infosys: See strong growth across six growth areas of AI 
--CONTEXT: Comments by Infosys management in post-earnings press conference 
--Infosys: See macro environment remaining uncertain 
--Infosys CEO: Congratulate Dash, look forward to helping with transition 
--CONTEXT: Infosys CEO on new CEO designate Ashiss Kumar Dash 
--Infosys: AI revenue growth consistent in past quarters 
--Infosys: Large deal pipeline looking good, have good deal pipeline in AI 
--Infosys: Will roll out wage hikes in Oct, increment for senior mgmt in Jan 
--Infosys: Lowered FY27 sales guidance on uneven macro environment 
--Infosys: Still see some constraints in retail segment 
--Infosys: Saw AI-led compression in some parts of portfolio 
--Infosys: Retail, communication segments continue to see challenges 
--Infosys: Will continue with acquisitions, have strong pipeline 
--Infosys: Plan to recruit 20,000 freshers this year, hired over 4,000 in Q1 
--Infosys: Comfortable with margins in AI deals 

 

MUMBAI/NEW DELHI – Information technology major Infosys Ltd. lowered the upper end of its 2026-27 (Apr-Mar) revenue growth guidance amid persisting uncertainty in the macroeconomic environment, which it earlier believed would settle down by the second half of the fiscal year. "We had a sense that the macro was settling down, so we had a guidance where the upper end looked at maybe things would settle down in the second half. Things are a little bit more uneven (now)," Salil Parekh, managing director and chief executive officer of the company, said at a post-earnings press conference Thursday. 

 

The company trimmed the higher end of its sales growth guidance by 5 basis points. The company now expects its revenue in constant currency terms to grow 1.5-3.0% in FY27 compared with the 1.5-3.5% growth expected at the end of the March quarter. The company, however, maintained its operating margin guidance of 20–22% for the current financial year. 

"Overall, we continue to see the macro environment remaining uncertain. With our Q1 (Apr-Jun) results and the view for the rest of the financial year, we are changing our revenue growth guidance to 1.5% to 3.0% year-on-year growth in constant currency terms," Parekh said.  

 

During the June quarter, the IT company's consolidated revenue rose nearly 4% sequentially to INR 482.11 billion. In constant currency terms, the company's revenue for the quarter grew 1% sequentially. The company had a one-time revenue impact related to a client, the company management said, without providing further details. 

 

Infosys expects growth in its financial services and energy verticals to outpace the company average for the rest of the year, Parekh said. During the June quarter, revenue from these verticals grew 2.4% and 1.3% on year, respectively, in constant currency terms. Despite the impact of a client-specific issue, the company's manufacturing vertical reported a 1% on-year rise in constant currency terms. 

 

Sales from its life sciences vertical grew 24% on year in constant currency terms. Going forward, the vertical is seen benefiting from the company's acquisitions in the field, Infosys said. Meanwhile, the company continues to see challenges in retail and communications verticals. "We still see... in retail, some constraints in terms of growth, and we are not yet seeing the pickup in that," Parekh said. During the June quarter, revenue from the retail segment slumped 1.8% on year in constant currency terms while that from communications was up 1.3%. 

 

With strong growth seen across all six growth areas of its artificial intelligence strategy, Infosys remains confident about the long-term relevance of its services to clients, which are all driven by AI. "I think my sense is the AI-led revenues are extremely significant at 8% (of total revenue) already. And if you look at the growth trajectory and if we execute on that well and the growth trajectory continues, we can see now a long-term relevance of AI revenues to our clients from what we are doing," Parekh said. 

 

The company's AI revenue is growing at double digits and is already becoming a growth engine in a way, Parekh said. The company had been witnessing double-digit sequential AI revenue growth for the last several quarters. "Our pipeline is even larger than the 8%, which is the revenue today," he added. While the company remains positive on AI-led growth going forward, it has seen AI-led compression in some areas of its portfolio, management said. 

 

Overall, the company's large deal pipeline remains healthy, with a good deal pipeline in AI, it said. On the margins of AI deals, the company said it was "quite comfortable," without quantifying.  

 

Even with improved productivity from AI expected to continue, Infosys plans to hire 20,000 freshers in FY27, similar to FY26. It has already onboarded more than 4,000 freshers in Apr-Jun. Further, to support the company's AI strategy, it is planning to build a team of 6,000 frontier engineers or forward-deployed engineers to support its client work, management said. 

 

Infosys plans to undertake wage hikes for the year in two parts, in October and January. Under this, most of its employees will get salary increases in October, and the senior employees will get them in January, management said. 

 

Answering a query about the company's acquisition plans, management said there are areas in which Infosys is interested in other than healthcare and insurance, which are more service line oriented, have good traction, and where AI can be leveraged into processes and agent building. "... we are looking at some geographies where we could do more work. Those are good geographies. We could do more in some of the other industries as well... we've seen that there could be things we could do in telco and financial services a little bit more in healthcare," Parekh said. The company said it will continue with acquisitions and has a strong pipeline for that. 

 

Earlier in the day, along with its quarterly results, Infosys announced the appointment of Ashiss Kumar Dash as chief executive officer designate. Dash will succeed Parekh as managing director and chief executive officer from Apr. 1, 2027. "Ashiss Dash is also a very collaborative individual, working well with all of the various components within Infosys and having been here for a long time has made sure he's learnt everything and also understood how all different parts of the company work," Parekh said, adding that he is looking forward to working with Dash during the transition over the next few months. 

 

Thursday, Infosys' shares closed 0.5% lower at INR 1,047.40 on the National Stock Exchange. The company announced its quarterly results after market hours. End

  

Reported by Arya S. Biju and Shakshi Jain 

Edited by Saji George Titus

 

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