Infosys lowers top end of annual revenue growth forecast

Infosys lowered the upper end of its annual revenue growth forecast after reporting June-quarter results that were below analyst expectations.

The Indian software services company said revenue for the financial year ending in March 2027 is expected to rise by 1.5 percent to 3.0 percent on a constant-currency basis. Four months earlier, it had forecast growth of 1.5 percent to 3.5 percent.

Infosys reported April-June revenue of 482.11 billion rupees, or $4.98 billion, up 14 percent from a year earlier. Analysts had expected 483.6 billion rupees. Net profit rose a little more than 12 percent to 77.69 billion rupees, also below analysts' projection of 79.03 billion rupees.

Infosys is India's second-largest software services exporter and gets more than 80 percent of its revenue from Western markets. The company and its competitors have faced slower demand over the past two years amid global uncertainty, the Middle East war and stronger competition from generative AI tools.

The company also said executive vice president Ashiss Kumar Dash will become CEO after current chief executive Salil Parekh's term ends in April. Parekh said in a statement that he had worked closely with Dash for many years and described him as having customer focus, experience with the business and the ability to lead through change.

India's IT industry, valued in the source at $315 billion, has faced muted client spending on large technology projects as AI tools from companies including Anthropic and OpenAI offer new ways to carry out work that had previously been outsourced. Infosys and other Indian software outsourcers have increased investment in AI tools, aiming to win new business and reduce costs through operational efficiencies.