Indian IT services giant Infosys has lowered its full-year revenue growth guidance for FY27 to 1–2 percent in constant currency terms, down from its Q1 projection of 1.5–3 percent, citing persistent pricing pressures, intense competition, and muted discretionary spending across key industry verticals like retail and hi-tech. The guidance revision comes despite a solid financial performance in the second quarter of FY27, during which the company reported a 6 percent year-on-year increase in consolidated net profit to ₹7,823 crore, up from ₹7,364 crore recorded in Q2FY26. Revenue from operations also expanded by 11 percent year-on-year to ₹49,244 crore compared to ₹44,490 crore in the same period of the prior year, prompting the board to declare an interim dividend of ₹26 per share. Highlighting operational highlights, chief executive officer Salil Parekh pointed to strong large deal wins totaling $5.2 billion during the September quarter, which included a flagship mega deal valued at over $2 billion. Furthermore, artificial intelligence revenues demonstrated rapid traction, accounting for 10.5 percent of total revenue and growing 29 percent quarter-on-quarter. Detailing the underlying factors behind the revised outlook, chief financial officer Jayesh Sanghrajka explained that heightened market competition and mounting client expectations for productivity improvements have exerted significant pressure on realization rates, while discretionary tech spending in retail and hi-tech remains sluggish. Notwithstanding these headwinds, Infosys maintained its full-year operating margin guidance band of 20–22 percent, having delivered an operating margin of 21 percent for the September quarter. Demonstrating long-term talent investments and operational resilience, the IT major expanded its net workforce by approximately 4,000 employees during the quarter, bringing its total headcount to 332,542—up from 328,062 in Q1FY27 and 331,991 in Q2FY26. This expansion included the onboarding of 8,000 fresh college graduates, keeping Infosys firmly on target to achieve its annual campus recruitment goal of 20,000 entry-level professionals after successfully completing more than half that target in the first six months. Addressing potential regulatory and operational questions regarding US work visas and on-site staffing models, Parekh emphasized that a significant majority of the company’s US-based workforce consists of local hires following strategic adjustments implemented several years ago. Although the ratio between on-site and offshore deployment has naturally adjusted over recent quarters, Infosys expects its localization-focused delivery strategy in key overseas markets to remain unchanged. Nevertheless, market analysts noted that this second guidance reduction reflects ongoing broader macroeconomic uncertainties and cautious enterprise tech spending.
Infosys Retains 20-22% Operating Margin Outlook and Adds 4,000 Net Employees in Q2
