Infosys Shares Slide Up to 4% After Cut to Fiscal 2027 Revenue Forecast

Shares in Indian IT services group Infosys fell sharply during Monday morning trading on October 26 after the company lowered its forecast for revenue growth in the financial year ending in 2027.

The stock dropped as much as 4% to approximately 1,107 rupees on the National Stock Exchange before paring part of the decline, according to The Economic Times. A separate Financial Express report said the shares were down about 3% in early trading. These are intraday readings and not closing prices.

The immediate catalyst was a change to the company's full-year constant-currency revenue growth guidance, reduced to a range of 1% to 2% from the previous 1.5% to 3%. Constant-currency growth removes the effect of exchange-rate fluctuations and is commonly used to assess the underlying performance of international services businesses.

Infosys reported a consolidated net profit of 78.23 billion rupees for the September quarter, up about 6% from a year earlier. Revenue was 492.44 billion rupees, according to the company figures cited by the two financial publications. The earnings announcement preceded Monday's market reaction.

Brokerage assessments were mixed. The Financial Express reported that Jefferies maintained a Hold rating and lowered its target price, while Nomura retained a Buy rating but also reduced its target. The Economic Times described differing views from Goldman Sachs and other analysts.

Investors are assessing whether new contract wins can compensate for competitive pricing, customers' demands for productivity improvements and uneven discretionary technology spending. The company maintained its operating margin guidance of 20% to 22%, but the lower revenue range prompted renewed attention to its ability to convert large deals into sales. No final closing share price is asserted in this report.