Salil Parekh, Chief Executive Officer of Infosys, looks on during a press briefing following the company's quarterly results announcement at its headquarters in Bengaluru, July 23, 2026.

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Infosys entered FY27 on a cautious note, moderating its constant currency revenue growth guidance to 1.5–3 per cent and lowering the upper end of its earlier forecast. In the June quarter of FY27, revenue climbed 3.9 per cent sequentially to ₹48,211 crore, while net profit slipped 8.6 per cent quarter-on-quarter to ₹7,769 crore.On a year-on-year basis, net profit rose 12.2 per cent, while revenue increased 14 per cent. Revenues in constant currency terms grew 2.4 per cent y-o-y and 1.0 per cent q-o-q. Operating margin improved 20 basis points sequentially to 21.1 per cent. AI-related revenue accounted for 8.2 per cent of the company’s total revenue.Salil Parekh, CEO and MD, said: “On the guidance, we had a one-time impact due to a client decision. There are factors related to the macro environment and volumes in the quarter. The upper end of the guidance was based on whether the macro was improving, which may happen but not at the level that we were thinking initially.”Large deal wins and AI business remain key growth driversThe total contract value (TCV) of large deal wins stood at $3.6 billion during the quarter, of which 61 per cent was net new business, compared with $3.2 billion in the preceding quarter. Addressing the impact of rupee depreciation on margins, Jayesh Sanghrajka, CFO, Infosys, said: “Over the previous several quarters, we’ve seen an ingenious expansion. One thing to note is that when the dollar appreciates against the rupee, it generally appreciates against most currencies. But we also look at non-US revenue, which offsets some part of the rupee depreciation.”Region-wise, the company saw revenue growth in both the US and Europe on both a sequential and year-on-year basis, while India witnessed some softness. Among the industry verticals, financial services and energy and utilities outpaced the company’s overall growth. However, retail continued to face demand constraints, with the company yet to see a meaningful recovery in the segment.Tushar Badjate, Managing Director, Badjate Stocks and Shares, explained that the quarter was operationally clean, but strategically mixed. While revenue grew, margins were uneven.“Operating margin was down 20 basis points (bps) sequentially, and PAT margin compressed 221 bps q-o-q, pulling reported profit down 8.6 per cent sequentially even as it grew 12 percent year on year. The tell for the year sits in the guidance and the deal book. The management narrowed the FY27 revenue growth band, which signals a demand environment that remains measured rather than accelerating. Large deal wins of roughly $3.6 billion with more than half in net new business, and AI-led services rising to 8.2 per cent of revenue from 5.5 per cent two quarters ago, are the offsetting positives. The next re-rating lever is conversion of that pipeline into an upward guidance revision by the second half. Until then, the print reads as steady execution against a still-cautious enterprise spending backdrop,” he said.Hiring plans remain intact as analysts back AI strategyMeanwhile, Infosys’ headcount stood at 328,062 employees at the end of the June quarter. The company reiterated its plan to hire 20,000 freshers during FY27, of which around 4,000 were onboarded in the first quarter.Meanwhile, Biswajit Maity, Senior Principal Analyst, Gartner, said, “The strong net-new deal mix further underscores the company’s ability to execute effectively amid ongoing macroeconomic uncertainty. AI is emerging as a meaningful growth catalyst, contributing 8.2% of total revenue. Infosys continues to strengthen its AI proposition through its Topaz portfolio, investments in generative and agentic AI, strategic partnerships with leading AI providers, and large-scale workforce reskilling initiatives. The company is increasingly positioning itself as a strategic partner for enterprise AI transformation, helping clients accelerate modernization, automation, and business process innovation. Continued investments in AI platforms, ecosystem partnerships, and talent development, combined with strong demand for AI-led transformation programs, should strengthen Infosys’ competitive position over the medium term.”Infosys’ shares closed at ₹1,051.80 on Thursday, down 0.048 per cent. The results were announced post-market closure.(With inputs from intern Siddhi Patil)Published on July 23, 2026