Infosys Shares Decline Nearly 4 Pc After Earnings Announcement

Shares of IT major Infosys on Friday dropped nearly 4% after its revenue growth forecast for FY27 came in lower than market expectations.

The stock declined 3.91% to hit a 52-week low of ₹1,193.90 on the BSE.

At the NSE, the stock dropped 3.75% to ₹1,194.

The company's market valuation declined by ₹19,503.61 crore to ₹4,84,728.11 crore.

As per a report by JM Financial Institutional Securities Limited, Infosys reported 4QFY26 results – revenue and margins were below expectations.

"Forward-looking indicators – Infosys guided for 1.5%-3.5% YoY cc revenue growth for FY27 (includes 20-25bps of acquisition), lower than our expectation of 2% to 4%, margin guidance was in-line at 20-22%," it said.

Infosys on Thursday reported a 20.8% rise in consolidated net profit to ₹8,501 crore in the January-March quarter and guided for 1.5 to 3.5% revenue growth for FY27, pinning its optimism on momentum in financial services, utilities, and AI services.

The top management spoke of the calendar year starting on a strong note, but pointed out that there was a "change in economic environment" amid the West Asia conflict, though things appear to be stabilising now.

The company's revenue from operations increased 13.4% to ₹46,402 crore in Q4 FY26 compared to ₹40,925 crore in the year-ago period.

In the full 2025-26 fiscal year, Infosys' net profit climbed 10.20% to ₹29,440 crore from ₹26,713 crore in 2024-25.

Its revenue from operations in FY26 rose 9.6% to ₹1,78,650 crore.

For FY27, Infosys has given a revenue growth forecast of 1.5 to 3.5% in constant currency terms.

"We had strong growth in financial services, in communications, and in manufacturing from the industry side and in Europe from the geography side. As we look ahead to the financial year 2027, we see large opportunities in AI services. We expect acceleration of growth in financial services and in the energy, utility, resources and services vertical.

"With the Iran war, there was a change in the economic environment…(but) there seem to be paths towards things stabilising. What we understand, (through) talking to people in the market and the clients, is that the underlying resilience of some of the economies where we have big markets is pretty good. The economies are doing well. There are good investments. AI is growing well," Infosys CEO and MD Salil Parekh said.

"Guidance for FY27 is maintained at 1.5-3.5% YoY cc (vs. our expectation of 1.5-4.5% YoY cc)," according to Motilal Oswal Financial Services.

Infosys guidance of 1.5–3.5% is below our estimates at the top end, and it tells us that AI is now compressing the existing book of business, it added.