Infosys Ltd reported a 6% year-on-year increase in consolidated net profit for Q2 FY27 at Rs 7,823 crore, but trimmed its full-year revenue growth forecast amid a cautious demand environment.
- Consolidated net profit at Rs 7,823 crore, up 6% YoY
- Revenue guidance lowered to 1-2% constant currency growth for FY27
- AI revenue up 29% sequentially, now 10.5% of total
What happened
Infosys posted a 6% year-on-year increase in consolidated net profit for Q2 FY27, reaching Rs 7,823 crore compared to Rs 7,364 crore in the same quarter last year. Revenue from operations rose 11% YoY to Rs 49,244 crore, roughly in line with market expectations. Sequentially, profit edged up 0.7%, while revenue grew 2%.
Despite these gains, Infosys lowered its revenue growth guidance for the full financial year 2027 to 1-2% in constant currency terms from an earlier forecast of 1.5-3%. The company cited a challenging demand environment as the main reason for this reduction, though it maintained operating margin guidance at 20-22%.
Why it matters
Infosys's decision to revise revenue guidance highlights mounting caution within the IT services sector amid uncertain global demand and competitive pressures. Nevertheless, the firm’s ability to maintain steady profitability and margins reflects disciplined cost control and operational efficiency.
Strong large deal bookings totaling $5.2 billion, including a significant $2 billion contract, underscore Infosys’s market leadership in complex digital transformation engagements. Additionally, a 29% sequential increase in AI-related revenue, now comprising over 10% of total revenue, signals momentum in high-growth technology segments critical for future expansion.
What to watch next
Investors will be closely watching Infosys’s next quarterly results for signs of stabilization or improvement in revenue growth amid global macroeconomic uncertainties. The company’s approach to balancing investment in AI and emerging technologies with margin protection will also be key.
Tracking segment performance remains important as life sciences and energy sectors show strong growth while traditional areas like hi-tech and retail continue to face challenges. Additionally, monitoring employee retention and hiring trends will offer insights into Infosys’s ability to sustain capacity and talent for future demand.