Infosys shares tumble 4% on FY27 guidance cut to 1-2% revenue growth
· Business · Economic Times
Infosys shares fell 4% to Rs 1,107 on the NSE on Monday after the IT major slashed FY27 revenue growth guidance to 1-2% from 1.5-3%, citing pricing pressure and a challenging demand environment. The company reported a modest 6% year-on-year rise in consolidated net profit to Rs 7,823 crore for Q2FY27 against Rs 7,364 crore in the year-ago period, while revenue from operations increased 11% YoY to Rs 49,244 crore. Goldman Sachs, Morgan Stanley, Citi and Choice Institutional Equities flagged growth concerns and maintained Neutral or Sell ratings, while Nomura upheld a Buy rating with a Rs 1,300 target price. Nomura noted that Infosys' FY27E guidance was slightly above estimates, revised to 1%-2% year-on-year revenue growth from the earlier 1.5%-3.0% range.
Why it matters
Investors and IT sector analysts face renewed uncertainty as Infosys' downgraded outlook signals weakening revenue visibility and pricing power amid intensifying competition, directly affecting shareholder value and sector sentiment.
Read the original report — Economic Times
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