Infosys has guided for a revenue growth of 1.5–3.5 per cent in constant currency terms for FY27, falling short of market expectations and lower than the 3–3.5 per cent outlook for FY26, signalling a cautious near-term demand environment.
The company’s American Depositary Receipts (ADR) declined over 6 per cent as of 8 pm, indicating a weak opening for its US-listed shares following the muted guidance.
The country’s second-largest IT services exporter, along with peers, continues to face subdued demand amid weak discretionary spending and persistent macroeconomic headwinds.
However, Infosys remains optimistic about growth prospects, led by financial services, energy, utilities, resources and services verticals, alongside emerging opportunities in artificial intelligence, despite rising competitive intensity and productivity-related pressures.
For the fourth quarter ended March 31, 2026 (Q4FY26), Infosys reported a 20.9 per cent year-on-year increase in consolidated net profit at ₹8,501 crore, compared with ₹7,033 crore in the corresponding quarter last year. Revenue rose 13.4 per cent to ₹46,402 crore from ₹40,925 crore, supported by an 11.4 per cent growth in Europe.
For the full year FY26, consolidated net profit increased 10.2 per cent to ₹29,440 crore, up from ₹26,713 crore in FY25.
“We delivered a resilient performance in FY26 with growth of 3.1 per cent in constant currency, supported by strong large deal wins of $14.9 billion, reflecting the robustness of our enterprise AI value proposition and market share gains in large transformation programmes,” said Salil Parekh, CEO and MD, Infosys. “The simplicity and strength of our AI services strategy across six areas is gaining traction, further reinforced by strong ecosystem partnerships enabling clients to derive value from AI.”
Parekh added that the company expects an acceleration in growth in financial services as well as in the energy, utilities, resources and services segments.
Infosys reported a sequential decline in headcount by 8,440 employees to 3,28,594 at the end of Q4FY26, compared with 3,37,034 in Q3FY26. Chief financial officer Jayesh Sanghrajka attributed the decline to seasonality and said the company plans to hire around 20,000 freshers in FY27, in line with the previous year.