Weak retail and high-technology sales helped drive Infosys' decision to lower its fiscal 2027 revenue-growth range, even as the Indian IT services provider secured $5.2 billion in large deals during its latest quarter.
Infosys set its FY27 constant-currency revenue growth range at 1%-2%, down from 1.5%-3% in July, and kept its operating-margin target at 20%-22%. Revenue for the quarter ended Sept. 30 totaled $5.145 billion, increasing 1.5% from a year earlier on a constant-currency basis and 1.3% in reported dollars.
Chief Financial Officer Jayesh Sanghrajka said softer volumes and pricing pressure contributed to the change. In archived post-results remarks, he also cited competition and demands for productivity, as well as weaker discretionary spending in retail and high technology.
The sector data reflected that divergence. Revenue fell 7.7% year over year in retail and 17.3% in high technology, measured in constant currency. Energy, utilities, resources and services grew 7.3%, while life sciences posted 32.5% growth on the same basis.
Large-deal total contract value was $5.2 billion, with 62% classified as net new. In Q1, the figures were $3.6 billion and 61%, respectively. The higher deal value came alongside overall quarterly revenue growth of 1.5% in constant-currency terms.
AI revenue represented 10.5% of total sales and increased 29% quarter over quarter, Infosys reported. Operating margin came in at 21.0%, compared with 21.1% in Q1, as the company maintained its full-year margin range.
Headcount reached 332,542 at Sept. 30, up from 328,062 at June 30. Voluntary attrition in IT Services, calculated over the preceding 12 months, stood at 12.7%, down from 13.0% in Q1 and 14.3% a year earlier.
