Infosys Cuts Annual Revenue Guidance Despite Strong Quarterly Deal Wins
· Business · Economic Times
Infosys reported steady second-quarter revenue growth and maintained operating margins at 21%, yet the company lowered its annual revenue guidance citing rising competitive pressures. The IT major secured a significant $2 billion transformation deal, pushing its total contract value for the quarter to $5.2 billion. Despite this strong deal momentum, management indicated that persistent weakness in specific business verticals necessitated a more cautious outlook for the full fiscal year. The company's stock has risen 16% over the past two weeks, though analysts note that the conservative guidance may dampen short-term market sentiment. Infosys currently maintains a lead over competitors like Tata Consultancy Services and Wipro in terms of trailing 12-month growth.
Why it matters
The lowered guidance from India's second-largest IT exporter signals potential headwinds for the broader domestic software sector as companies grapple with intense competition and uneven vertical performance.
Read the original report — Economic Times
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