Infosys Ltd.AI Revenue Surges Amid Guidance Cut

Infosys reported Q1 FY27 revenue of $5,082 million, growing 1% quarter-on-quarter and 2.4% year-on-year in constant currency terms.

The company revised its full-year revenue growth guidance to 1.5-3% from 1.5-3.5%, citing uncertain macroeconomic conditions, softer-than-expected volumes, and a one-time client program termination that impacted revenue by 50 basis points. Despite headwinds, operating margin improved 20 basis points to 21.1%, with guidance maintained at 20-22%. A bright spot emerged in AI services, which now constitute 8.2% of total revenue, up from 5.5% in Q3 FY26, demonstrating consistent double-digit quarter-on-quarter growth.

The company secured $3.6 billion in large deals with 61% net new, including $700 million from vendor consolidation at healthy margins. Management highlighted the proprietary Topaz Fabric platform, which enables clients to leverage AI while maintaining data sovereignty. Free cash flow remained strong at $955 million, representing 116.5% of net profit, while EPS grew 15% year-on-year in rupee terms. Ashiss Dash, a 31-year Infosys veteran, was announced as CEO designate, effective April 1, 2027.