Bengaluru-based IT giant Infosys announced its first-quarter earnings, revealing a revision to its full-year revenue growth outlook. The company now anticipates revenue growth between 1.5% and 3% for the fiscal year ending March 2027, on a constant currency basis. This marks a reduction from its earlier projection of 1.5% to 3.5% issued in April, reflecting broader industry trends of clients moderating technology spending.
Q1 Performance Highlights
Despite the cautious outlook, Infosys delivered strong financial results for the June 2026 quarter. Net profit surged by 12% year-on-year, reaching Rs 7,769 crore, compared to Rs 6,921 crore in the corresponding period last year. Revenue from operations also saw a significant increase, climbing 14% to Rs 48,211 crore from Rs 42,279 crore in Q1 FY26.
Factors Influencing Demand and Strategy
The adjusted forecast comes as global clients slow down their technology investments, influenced by persistent high interest rates and ongoing geopolitical uncertainties. Like its peer Tata Consultancy Services, Infosys is actively managing expenses and scaling back graduate hiring in response to a decline in demand for traditional IT projects. There's a noticeable industry-wide shift as clients increasingly prioritize artificial intelligence (AI) solutions.
Artificial intelligence is playing an expanding role in Infosys' business, with AI-led services contributing 8.2% to the company's total revenue during the quarter. This represents a considerable increase from 5.5% in the previous December quarter, underscoring growing enterprise investments in AI transformation and Infosys' expanding portfolio of AI-enabled offerings.
Large Deals and New Client Acquisitions
Infosys maintained robust momentum in securing large deals, with contracts valued over $30 million totaling $3.6 billion for the quarter. This is an improvement from $3.2 billion in the preceding quarter, though slightly below the $3.8 billion recorded in the same period last year.
Key client additions during Q1 FY27 included Sterling Bank of Asia, semiconductor manufacturer GlobalFoundries, and Malaysia-based healthcare provider IHH Healthcare. These strategic wins span diverse sectors such as banking, semiconductors, and healthcare, highlighting Infosys' broad market appeal across various industries and geographic regions.
Ahead of the Q1 results announcement, Infosys shares closed marginally lower on the BSE, down 0.05% at Rs 1051.80, with the firm's market capitalization standing at Rs 4.26 lakh crore.