INFY

INFY's Q1 fiscal 2027 earnings and revenues miss estimates as soft volumes and a client exit offset growth and rising AI sales.

Infosys Limited continues to underperform major benchmarks, including U.S. stocks, India, and global tech indices. Despite a strong balance sheet, healthy margins, and reliable cash generation, INFY has struggled with persistent lowered expectations over the past five years. My prior Hold rating reflected INFY's survivability and potential for turnaround, rather than imminent decline.

I downgrade Infosys Limited from 'Buy' to 'Hold,' considering its mixed performance and divergent outlook. INFY's 1QFY2027 revenue fell short of the consensus estimate, but its operating margins improved on both YoY and QoQ terms to 21.1%. The mid-point of its FY27 topline growth guidance was cut to +2.25%, while the full-year EBIT margin guidance held steady at 21.0%.

Strong Large Deal Wins at $3.6 Billion with 61% Net New; Robust Free Cash Flow of $0.96 Billion FY27 Revenue Guidance Revised to 1.5%-3.0%, Margin guidance Retained at 20%-22% BENGALURU, India, July 23, 2026 /PRNewswire/ - Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in AI-first business consulting and technology services, delivered $5,082 million in Q1 revenues, year on year growth of 2.4% and sequential growth of 1.0% in constant currency. Operating margin was at 21.1%, sequential increase of 0.2%.

Infosys NYSE: INFY announced a planned CEO transition alongside first-quarter results that showed modest constant-currency revenue growth, strong large-deal bookings and accelerating artificial intelligence-related revenue, while management lowered the top end of its full-year revenue growth outlook amid an uncertain macroeconomic environment.

Infosys ​reported lower-than-expected ‌quarterly revenue on ​Thursday ​as India's second-largest ⁠IT firm's ​clients ​held back spending as artificial ​intelligence ​tools disrupt traditional ‌software ⁠businesses.

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Collaboration focuses on improving efficiency across the enterprise utilizing AI with tangible outcomes across IT, hospital operations and clinical support BENGALURU, India and NORFOLK, Va., June 24, 2026 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in AI–first business consulting and technology services, today announced its strategic collaboration with Sentara, a leading not–for–profit healthcare organization, to create a scalable foundation for AI–driven transformation that aims to enhance efficiency, support clinicians and staff, and improve experiences for patients and members.

Peer-to-peer learning and collaboration platform for global CMOs Powered by Infosys Aster, the Hub brings proprietary case studies, and curated peer insights through a conversational AI experience BENGALURU, India, June 24, 2026 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in AI-first business consulting and technology services, in collaboration with ANA's Global CMO Growth Council, global leadership body driving growth for marketers, and LIONS, the parent platform and organizer of the Cannes Lions International Festival of Creativity, today announced the launch of the CMO AI Hub. This exclusive AI-powered platform is designed to enable peer-to-peer learning among Chief Marketing Officers by bringing together insights, experiences, and perspectives from the leading marketing organizations and executives worldwide.

Infosys Limited (INFY) Shareholder/Analyst Call Transcript