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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%.
Infosys (NYSE:INFY) reported downbeat earnings for the first quarter on Thursday.
Infosys Limited (INFY) Q1 2027 Earnings Call Transcript
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.
SEC filings for INFY aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.