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Infosys ADRs fall 7.5% after company trims revenue growth forecast
Infosys ADRs fell 7.5% after the company lowered its annual revenue growth forecast to 1%-2%.
Key points
- Infosys revised its fiscal year ending March 2027 revenue growth forecast down to a range of 1%-2%.
- Consolidated net profit for the September quarter increased 6.2% year-on-year to ₹7,823 crore.
- AI-related revenue grew 29% quarter-on-quarter, accounting for 10.5% of total company revenue.
Why it matters. The lowered guidance heightens concerns that companies continue to curb spending on major IT projects amid global uncertainty and competition from AI firms like OpenAI and Anthropic.
Infosys ADRs fell 7.5% to $12.25 during pre-market trading on October 23 in the US. The Bengaluru-based firm revised its annual revenue growth forecast for the fiscal year ending March 2027 to 1%-2% from 1.5%-3%. CEO Salil Parekh reported $5.2 billion in large deals for the September quarter, while net profit rose 6.2% to ₹7,823 crore. The company attributes demand slowdowns to global uncertainty, Middle East conflict, and competition from OpenAI and Anthropic.
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Infosys ADRs fall 7.5% after company trims revenue growth forecast
Infosys ADRs plunged 7.5% to $12.25 in US pre-market trading on Friday, October 23. The decline follows the company's decision to trim its annual revenue growth forecast, sparking concerns over weak demand for major tech projects and AI competition. Despite the lowered outlook, the Bengaluru-based firm reported a 6% rise in Q2 net profit and marginally beat revenue estimates for the September quarter.