Shares of Infosys, India's second-largest IT services provider, fell by nearly 3% in early trading on Friday, July 24, 2026. The decline came despite the company reporting a robust 12% rise in its first-quarter net profit, as investors reacted negatively to a downward revision in its annual revenue guidance.
Revenue Outlook Trimmed
The Bengaluru-based IT major announced a revised revenue growth forecast for the current fiscal year, which extends through March 2027. On a constant currency basis, Infosys now expects revenue to grow between 1.5% and 3%. This marks a slight reduction from its previous guidance issued in April, which had projected growth in the range of 1.5% to 3.5%.
This revised outlook weighed heavily on market sentiment, contributing to the stock's dip. Infosys shares traded at Rs 1,023, down 2.70% from their previous close of Rs 1,051.80. The firm's market capitalization consequently decreased to Rs 4.21 lakh crore.
Q1 Financial Highlights
Despite the cautious revenue forecast, Infosys delivered strong financial performance for the first quarter. The company reported a net profit of Rs 7,769 crore, a significant 12% increase compared to Rs 6,921 crore recorded in the same period last year.
Revenue from operations also saw substantial growth, rising by 14% to Rs 48,211 crore for the quarter ending June 2026. This is up from Rs 42,279 crore reported in the first quarter of fiscal year 2026.
Market Reaction
The market's focus appears to be predominantly on future growth prospects, as evidenced by the negative reaction to the guidance cut overshadowing the positive quarterly earnings. The broader market sentiment also contributed to the pressure on IT stocks, including Infosys.