Infosys Limited · INFY · FY2027 Q1 · Calendar Q3 2026
Infosys lowers growth outlook as AI momentum strengthens
Infosys is showing credible AI-services and large-deal momentum, but the near-term earnings case is constrained by modest growth, a lower revenue outlook, pricing pressure and the need to scale AI profitably.
Earnings scorecard
Reported versus consensusMarket reaction
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Transcript intelligence
What changed
The current quarter showed AI services at 8.2% of revenue and $3.6 billion of large-deal wins, while revenue guidance was lowered to 1.5%-3% YoY. Management maintained the 20%-22% margin outlook and announced plans to expand frontier-AI talent.
Guidance delta
Revenue guidance was lowered from 1.5%-3.5% YoY to 1.5%-3% YoY; 20%-22% margin guidance was maintained.
Key takeaways
- Q1 FY27 revenue growth was 2.4% YoY, while operating margin held at 21.1%.
- AI services reached 8.2% of revenue and were described as growing double-digit quarter-on-quarter.
- Large-deal wins totaled $3.6 billion, with a 61% net-new rate.
- Management linked the outlook reduction to softer volumes, a one-off client termination and pricing pressure.
Management priorities
- Scale the Hexagon AI strategy, Topaz Fabric and Cloud Codex.
- Build a 6,000-person frontier-engineering team over the next few years.
- Recruit 20,000 graduates and reskill the existing workforce for AI.
- Deepen partnerships with hyperscalers and AI-native companies while maintaining margin guidance.
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Try FN2 freeCompany context
Snapshot as of publicationInfosys Limited, through its global network of subsidiaries, delivers an extensive portfolio of consulting, technology, outsourcing, and next-generation digital services spanning North America, Europe, India, and other international markets. The company's diverse offerings encompass a broad spectrum of digital capabilities, including marketing, workplace modernization, e-commerce, customer experience enhancement, and exploration into the metaverse. It provides expertise in data analytics, both applied and generative artificial intelligence, sustainability initiatives, blockchain, engineering, and the Internet of Things. Further services cover enterprise agile DevOps, application modernization, cloud computing, digital process automation, and optimization of digital supply chains. Infosys also specializes in Microsoft business applications, cloud business integration, service experience transformation, energy transition, robust cybersecurity, and quality engineering.…
Historical context
All INFY earningsTechnology peers this season
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|---|---|---|---|---|
| SSNC SS&C Technologies Holdings, Inc. | FY2026 Q3 · Calendar Q4 2026 | +0.6% | +2.8% | SS&C raises 2026 outlook as AI and tokenization support growth |
| ROP Roper Technologies, Inc. | FY2026 Q3 · Calendar Q4 2026 | +1.7% | +9.7% | Roper raises DEPS outlook as AI adoption expands across portfolio |
| VRSN VeriSign, Inc. | FY2026 Q3 · Calendar Q4 2026 | -2.0% | -0.9% | VeriSign reports record registrations as renewal mix becomes a key watchpoint |
| TTMI TTM Technologies, Inc. | FY2026 Q3 · Calendar Q4 2026 | +16.8% | -27.7% | TTM Technologies Q3: Record Growth, Higher Investment, More Deal Risk |
| NOK Nokia Oyj | FY2026 Q3 · Calendar Q4 2026 | +25.0% | -14.8% | Nokia Q3: AI and cloud growth lifts margins as cash flow stays negative |
| WDC Western Digital Corporation | FY2027 Q1 · Calendar Q4 2026 | +12.9% | -6.4% | Western Digital pairs strong FY27 Q1 growth with an accelerated HDD roadmap |
Latest beats and misses
Who reports nextBeat on EPS
- DECKFY2027 Q2 · October 22, 2026+13.4% EPS-0.2% move
- OMCFY2026 Q3 · October 22, 2026+2.2% EPS+2.6% move
- SSNCFY2026 Q3 · October 22, 2026+0.6% EPS+2.8% move
- BEFY2026 Q3 · October 22, 2026+36.0% EPS-8.7% move
- ROPFY2026 Q3 · October 22, 2026+1.7% EPS+9.7% move
- BPOPFY2026 Q3 · October 22, 2026+5.8% EPS-2.8% move
Missed on EPS
- SNAFY2026 Q3 · October 22, 2026-5.9% EPS-3.4% move
- SPOTFY2026 Q3 · October 22, 2026-11.6% EPS+11.1% move
- VRSNFY2026 Q3 · October 22, 2026-2.0% EPS-0.9% move
- HBANMFY2026 Q3 · October 22, 2026-5.3% EPS+0.5% move
- HBANPFY2026 Q3 · October 22, 2026-5.3% EPS0.0% move
- PCGFY2026 Q3 · October 22, 2026-0.8% EPS-1.3% move
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Sources
- Earnings call transcript and parsed analysis · 2026-07-23T17:04:21.199652+00:00
- FN2 earnings calendar · 2026-08-27T01:23:13.912278+00:00
- Polygon adjusted daily market bars · 2026-10-23T17:20:46.083888+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-23T17:20:46.080834+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-23. For educational purposes only; not investment advice.