Infosys stock faces slower FY27 outlook despite AI momentum

Infosys reported second-quarter results for the period ended September 30, 2026, on October 23, cutting its fiscal 2027 constant-currency revenue-growth outlook while highlighting stronger demand for artificial intelligence services and large contracts. The company said revenue rose 1.5% year over year in constant currency and 1.2% sequentially, according to the Infosys release published by PR Newswire.

Guidance reset highlights pressure

Infosys now expects fiscal 2027 revenue growth of 1%-2% in constant currency, compared with its previous range of 1.5%-3%. The company retained its operating-margin outlook at 20%-22%, leaving profitability guidance unchanged even as the sales outlook became more cautious.

Reported quarterly revenue was 5,145 million US dollars, up 1.3% from the year-earlier period. Operating margin held at 21.0%, while quarterly net profit before non-controlling interests was 819 million US dollars, compared with 840 million US dollars a year earlier. Basic earnings per share was 0.20 US dollars.

AI and contracts offer a counterweight

AI revenue represented 10.5% of total revenue and grew 29% from the preceding quarter. Chief Executive Officer Salil Parekh said Infosys was advising large global enterprises on AI strategy and continuing to invest in domain and technology capabilities.

Large-deal total contract value reached 5.2 billion US dollars, with 62% classified as net-new business. The figure included a contract worth more than 2 billion US dollars. The bookings provide future revenue visibility, but the guidance reduction keeps near-term demand and execution risks central to the investment case.

Chief Financial Officer Jayesh Sanghrajka said cost and operational-efficiency measures helped keep margins stable amid heightened volatility. Free cash flow was 928 million US dollars, equivalent to 113.3% of net profit.

Dividend sets the next date

The board declared an interim dividend of 26 rupees per share, an increase of 13% from the prior year. The record date was November 3, and payment is scheduled for November 11, giving investors a near-term corporate-action date to monitor.

Infosys stock traded at 11.05 euros on Lang & Schwarz at 09:41 CET on Monday, November 9, 2026. The real-time quote of Infosys stock provides the latest market indication.

The S&P 500 provides the broader market backdrop for US-traded Infosys stock; current market reports cover wider equity trends.

More news and analyses on Infosys stock will follow as the dividend payment and the revised growth outlook shape the next investor assessment.