Infosys Limited Q1 2027 Earnings Recap

Infosys shares declined modestly by 1.1% following the Q1 FY '27 earnings release, reflecting investor caution due to a downward revision in revenue growth guidance despite continued AI momentum and stable margin outlook.

Key Takeaways

• Revenue grew 2.4% year-over-year and 1% quarter-over-quarter in constant currency, including a one-time client-related revenue impact.
• AI services accounted for 8.2% of total revenue, showing continued double-digit sequential growth over several quarters.
• Large deal bookings totaled $3.6 billion, with 61% representing net new business.
• Operating margin held steady at 21.1%, in line with prior guidance, supported by disciplined cost management.
• Revenue growth guidance was revised downward to 1.5%-3% for the full fiscal year, signaling a cautious outlook amid macroeconomic uncertainty and selective client spending.