Infosys Lowers Annual Revenue Growth Forecast Amid AI Pressure
Infosys reduced its annual revenue growth forecast to 1-2 percent as artificial intelligence forces a shift in IT services business models.
Infosys lowered its annual revenue growth forecast for the fiscal year ending March 2027 to between 1 percent and 2 percent, down from a previous estimate of 1.5 percent to 3 percent. The revision follows a quarterly report for the July-September period showing a 10.7 percent revenue increase to 492.44 billion rupees, which marginally beat estimates.
Net profit for the quarter rose 6.2 percent to 78.23 billion rupees, though the figure fell below analyst expectations. The company reported a significant increase in deal wins, which grew to $5.2 billion from $3.1 billion the previous year, supported by improved demand in the energy and utility sectors.
Despite these gains, the company faces industry-wide pressure from the rise of artificial intelligence. AI is forcing Indian IT firms to overhaul traditional business models as clients move away from hourly billing in favor of fees tied to productivity gains. This shift contrasts with peers like Tata Consultancy Services and HCLTech, which met revenue estimates and saw stock surges linked to AI revenue.
