Infosys shares slide as company trims FY27 revenue growth outlook
Infosys fell up to 4% after lowering its FY27 revenue growth guidance to 1-2% amid pricing pressure and a weak demand environment, prompting mixed reactions from analysts.
Infosys Ltd. shares dropped to a low of Rs 1,107 on the National Stock Exchange on Monday after the IT services firm cut its fiscal 2027 revenue growth guidance to 1-2% in constant currency, down from the previously indicated 1.5-3%. The company said the revision reflected pricing pressure from intensified competition and a challenging demand environment. Revenue from operations rose 11% year-on-year to Rs 49,244 crore in the second quarter, while net profit grew 6% to Rs 7,823 crore.
Nomura kept a Buy rating on the stock with a target price of Rs 1,300, suggesting a potential upside of about 12.5%. Goldman Sachs maintained a Neutral stance, setting a target of Rs 1,000 and noting that the second consecutive guidance cut points to continued weakness in revenue visibility. Morgan Stanley retained an Equal-Weight rating, raising its target to Rs 1,075, and highlighted that strong deal wins could partially offset headwinds, though growth remains uncertain.
Citi also held a Neutral rating, lifting its target to Rs 1,105, and said the firm is executing reasonably well despite industry-wide challenges, but growth is expected to stay subdued. Choice Institutional Equities kept a Reduce rating with a target of Rs 1,060, describing the quarterly results as mixed and emphasizing the importance of deal conversion and margin protection.
Analysts across the brokerages cited weaker discretionary spending, competitive pricing pressures and uncertainty around AI-related pricing as key concerns, with no clear near-term catalyst for growth.