Infosys trims FY27 revenue growth forecast to 1% to 2%
Infosys just lowered its revenue growth forecast for FY27 to 1% to 2% (down from 1.5% to 3%) as clients keep asking for better deals and more productivity, especially with AI.
CFO Jayesh Sanghrajka explained that competition is heating up and client demands are rising, making it tough to keep prices up.
Infosys AI revenue rises to 10.5%
Even with these challenges, Infosys's AI business is on a roll. AI now makes up 10.5% of its revenue, jumping from 8.2% last quarter.
CEO Salil Parekh pointed out that while AI brings in new opportunities, it also puts pressure on traditional service revenues.
Meanwhile, Infosys landed $5.2 billion in big deals this quarter, though the real payoff from a new mega deal will show next year.
The company says it's staying focused on delivering value through its Topaz Fabric platform and other AI capabilities, even as pricing pressures stick around and wage hikes kick in.