Infosys Slides 2% As Q1 Miss, Guidance Cut Weigh On Sentiment

Shares of Infosys fell nearly 2% in early trade on Friday, emerging as the top loser on the Nifty 50, after the IT services major reported weaker-than-expected June-quarter earnings and lowered the upper end of its FY27 revenue growth guidance. The stock declined 1.99% to ₹1,026.6.

At around 10 a.m., the Sensex was down 824.99 points, or 1.08%, at 75,566.40, while the Nifty 50 fell 247 points, or 1.03%, to 23,622.60. Market breadth remained weak, with 559 stocks advancing against 1,376 declining on the NSE, while all sectoral indices traded in the red.

Infosys reported a 12% year-on-year rise in consolidated net profit to ₹7,769 crore for the quarter ended June 2026, compared with ₹6,921 crore a year earlier. Revenue from operations increased 14% to ₹48,211 crore.

For FY27, the company revised its constant currency revenue growth guidance to 1.5%-3%, trimming the upper end of its earlier forecast, while maintaining its operating margin guidance of 20%-22%.

Guidance Cut Dampens Sentiment

Brokerages said the reduction in Infosys' revenue growth outlook overshadowed an otherwise stable quarter, raising concerns about the company's near-term growth trajectory.

Analysts noted that June-quarter revenue came in below expectations, while the sharper-than-anticipated cut to the FY27 guidance reinforced concerns over slowing demand across key markets. Although operating margins remained broadly in line with expectations, they said the revised outlook suggests clients continue to remain cautious on discretionary technology spending.

Demand Challenges Remain In Focus

Brokerages also pointed to persistent demand headwinds, saying healthy large deal wins are taking longer to translate into revenue growth.

Analysts highlighted AI-led pricing pressure, slower revenue conversion despite a strong deal pipeline and client-specific challenges as factors likely to weigh on growth in the coming quarters. They added that execution will need to improve for the company to deliver on its revised guidance.

While the company's profitability remained resilient and margins held steady, brokerages said sustained revenue acceleration will depend on a recovery in discretionary IT spending and improved client execution, keeping the near-term outlook cautious despite Infosys' healthy order book.