Infosys shares fall 4% after FY27 revenue growth guidance cut

Infosys shares experienced a 4% decline on Monday following the IT services giant's reduction of its FY27 revenue growth guidance to 1-2% in constant currency terms. The company cited sluggish client spending and subdued volume growth as key factors behind the revised outlook. Despite strong deal wins during the September quarter, investor sentiment remained cautious.

Infosys reported a revenue of ₹49,244 crore in the September quarter, up 1.5% year-on-year, while its net profit increased 6.2% to ₹7,823 crore. This marks the second consecutive quarter that Infosys has cut its revenue growth guidance. Goldman Sachs noted that the updated guidance implies a modestly negative organic revenue growth for FY27, while Citi maintained a neutral rating with a target price of ₹1,105.

HSBC also maintained its hold rating with a target price of ₹1,110, citing the lower end of the peer range for FY27 guidance.