Infosys Stock Slides After Cutting Full-Year Revenue Guidance

Shares of Infosys (NSE: INFY) declined on Monday after the Indian IT services major lowered its full-year revenue growth forecast and posted second-quarter results that fell short of analyst estimates.

Weaker Outlook Weighs on Shares

Infosys revised its revenue growth guidance in constant currency for fiscal year 2027 to a range of 1% to 2%, down from its previous forecast of 1.5% to 3%. According to a report from Investing.com, this reduction was more substantial than many analysts had anticipated, with the market largely expecting a trim to only the upper end of the range.

The company's second-quarter performance also missed expectations. Key figures reported include:

• Q2 Revenue Growth: 1.2% quarter-over-quarter in constant currency, below both consensus and UBS estimates.
• EBIT Margin: 21.0%, missing expectations by approximately 30 basis points.

Management Cites Macro Headwinds

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Chief Financial Officer Jayesh Sanghrajka attributed the downbeat forecast to a challenging operating environment. He pointed to slower project volumes, persistent pricing pressure, and increasing client demands for productivity gains as key factors.

Sanghrajka noted continued spending weakness in the retail and high-tech sectors. In contrast, he described business from the financial services, energy, utilities, and manufacturing segments as more resilient.

Market and Analyst Reaction

In response to the earnings report, Infosys stock fell 1.5% to ₹1,135.70 in Monday's trading. The decline came even as India's benchmark Nifty 50 index rose 0.4%.

Following the announcement, analysts at UBS lowered their price target on Infosys to INR 1,415 from INR 1,430, according to Investing.com. The bank maintained its 'Buy' rating on the stock despite noting that the quarterly results missed its estimates.