Infosys cuts annual revenue growth forecast to 1–2%
North American sales fell 1.5% in the second quarter, prompting the Indian IT-services company to lower its expectations for fiscal 2027.
Loading… Բեռնվում է…
North American sales fell 1.5% in the second quarter, prompting the Indian IT-services company to lower its expectations for fiscal 2027.
Infosys, India’s second-largest IT-services company, cut its fiscal 2027 revenue growth forecast to 1–2% from 1.5–3% on 23 October as weakness deepened in North America, Reuters said. In its latest quarterly results, the company also said superintelligence (SI) accounted for 10.5% of its revenue.
North America accounts for more than half of Infosys’s sales. The forecast cut went further than most analysts expected: they had anticipated reducing only the upper end to 2.5%. Infosys’s US-listed shares fell 7.5% in premarket trading following the news.
Infosys said revenue from SI grew 29% in its latest quarter compared with the preceding quarter, The Register said on 28 October. That is sequential growth—a quarter-to-quarter comparison—not growth against the same quarter a year earlier.
The overall revenue figures use an annual comparison. Total second-quarter revenue rose 10.7% year on year as reported, or 1.5% excluding currency movements. The latter measure removes exchange-rate changes from the comparison. Neither annual rate directly measures how SI performed against the rest of the business over the same period.
North American revenue fell 1.5% in the second quarter, its weakest performance in two years. Across Infosys, revenue narrowly exceeded analysts’ expectations in LSEG data, while net profit missed them. Deal wins increased from a year earlier.
The satellite operator expects access to more than twice OneWeb’s current bandwidth in return for spending in 2027–2034, with initial IRIS² services expected from 2030.
3 min
| Measure | Result | Year-earlier comparison | Analysts’ expectation |
|---|
| Revenue | 492.44 billion rupees ($5.19 billion) | Up 10.7% as reported | 491.32 billion rupees |
| Net profit | 78.23 billion rupees | Up 6.2% | 79.29 billion rupees |
| Deal wins | $5.2 billion | Up from $3.1 billion | — |
Chief financial officer Jayesh Sanghrajka said high-tech and retail clients scaling down projects had weighed on North American sales. Competition and clients’ demands for lower prices to reflect SI productivity gains were also built into the revised forecast.
Gaurav Vasu, founder of market intelligence firm UnearthInsight, interpreted the cut as a sign that North American demand had not recovered. He said spending was shifting toward SI providers, cloud services and US-based SI startups, weighing on traditional IT providers. Vasu said North America could remain a weak market for the next two to four quarters.
Microsoft reported $33.17 billion in Azure revenue and a 22% year-over-year decline in Windows OEM and devices revenue. Its reporting overhaul brings quarterly disclosure of Azure’s dollar contribution.
2 min
The US wireless carrier’s third-quarter service revenue rose 6% to $19.4 billion as it raised its expectations for the full year.
1 min