Infosys ADRs fall over 4% as Q1 revenue guidance cut overshadows profit growth

Infosys' American Depositary Receipts fell over 4% in the pre-market after the company reported its June-quarter results and trimmed the upper end of its FY27 revenue growth guidance, raising fresh concerns over demand recovery in the IT services sector.

The stock reaction came even as Infosys reported double-digit growth in rupee revenue and profit. Investors focused more on the company’s cautious outlook, slower constant currency growth and continuing uncertainty in discretionary technology spending.

Infosys revised its FY27 revenue growth guidance to 1.5-3% in constant currency terms from the earlier 1.5-3.5% range. The company retained its operating margin guidance at 20-22%.


For the quarter ended June 30, 2026, Infosys reported consolidated net profit of Rs 7,769 crore, up 12.2% from Rs 6,921 crore in the same quarter last year. Sequentially, profit fell 8.6% from Rs 8,501 crore in the March quarter.

Revenue from operations rose 14% year-on-year to Rs 48,211 crore from Rs 42,279 crore. On a quarter-on-quarter basis, revenue grew 3.9% from Rs 46,402 crore.

Also Read: Infosys Q1 Results: Profit rises 12% YoY to Rs 7,769 crore; co trims upper-end revenue forecast

In dollar terms, revenue stood at $5.08 billion, up 2.8% year-on-year and 0.8% sequentially. Constant currency revenue grew 2.4% year-on-year and 1% quarter-on-quarter.

The slower constant currency growth and lower guidance showed that clients are still taking longer to approve technology spending. Indian IT companies have been dealing with weak discretionary demand, delayed decision-making and pressure from AI-led productivity gains.

Operating profit stood at Rs 10,163 crore, compared with Rs 8,803 crore a year earlier. Operating margin came in at 21.1%, up from 20.8% in the year-ago quarter and 21% in the March quarter.

Large deal total contract value stood at $3.6 billion, with 61% net new business. Free cash flow was $955 million, or Rs 9,051 crore, with free cash flow conversion of 116.4% of net profit.

Infosys also said AI revenue accounted for 8.2% of total revenue in the quarter. Chief Executive Officer Salil Parekh said AI momentum is converting into revenue and helping the company gain market share.

“AI momentum is now rapidly converting into revenue, which demonstrates how Infosys’ differentiated enterprise AI value proposition is translating into consistent market share gains,” Parekh said.