Infosys Shares Fall 2.4% After IT Major Trims Full-Year FY27 Revenue Growth Guidance

Shares of Infosys Limited dropped nearly 2.5% in morning trade on Friday, July 24, 2026, as investor sentiment was dampened by the IT giant's decision to narrow its full-year revenue growth outlook despite a steady quarter.

Revenue Guidance Revision Triggers Stock Sell-Off

Trading at ₹1,021.80 as of 10:49 a.m. IST, Infosys shares were down ₹25.60, or 2.44%, from the previous close of ₹1,047.40, having touched an intraday low of ₹1,019.00 shortly after opening.

The stock pressure came after the Bengaluru-headquartered software services exporter reported its Q1 FY27 financial performance. Consolidated net profit for the quarter ended June 30, 2026, rose 12.2% year-on-year to ₹7,769 crore. Consolidated revenue from operations grew 14% year-on-year to ₹48,211 crore.

However, the company narrowed its FY27 revenue growth forecast to 1.5%–3.0% in constant currency terms, down from its earlier band of 1.5%–3.5%. Chief Executive Officer Salil Parekh cited an ongoing uncertain macroeconomic climate and a one-off revenue impact from a specific client decision during the quarter as key reasons for the recalibration.

Brokerages Weigh In on Guidance and Margins

Brokerages maintained a neutral to cautious outlook on the stock, noting that while large deal wins remained healthy at $3.6 billion (with 61% net new), short-term discretionary client spending continues to lag in core overseas markets.

Operating margins (EBIT) held resilient at 21.1%, expanding by 30 basis points year-on-year, supported by tight operational cost discipline and efficiency programs. Infosys reaffirmed its full-year operating margin guidance band of 20%–22%.

Artificial intelligence-led services contributed 8.2% to overall quarterly revenue, with over 80,000 employees actively utilizing enterprise AI development tools.

In tandem with its financial results, Infosys announced a major executive leadership transition. The Board appointed 31-year company veteran Ashiss Kumar Dash as CEO-designate.

Dash will assume the role of Managing Director and Chief Executive Officer on April 1, 2027, succeeding Salil Parekh upon the completion of his second term, ensuring a structured succession process over the coming months.

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