Infosys reported a 12.2% year-on-year increase in consolidated net profit to ₹7,769 crore for the first quarter of FY27, driven by continued growth in artificial intelligence (AI)-related services and strong large deal wins. However, the IT services giant slightly missed market expectations on revenue and trimmed the upper end of its FY27 revenue growth guidance, reflecting continued caution around discretionary technology spending by global clients.
Alongside its quarterly results, Infosys announced a major leadership transition. The company’s Board appointed Ashiss Kumar Dash as CEO-designate, with immediate effect. Dash will succeed Salil Parekh as Chief Executive Officer and Managing Director from April 1, 2027, subject to shareholder and regulatory approvals. The appointment marks the first planned CEO succession at Infosys since Parekh took charge in 2018.
Infosys Reports Double-Digit Profit Growth
For the quarter ended June 30, 2026, Infosys reported:
- Net profit: ₹7,769 crore, up 12.2% year-on-year.
- Revenue from operations: ₹48,211 crore, up 14% year-on-year.
- Revenue growth was slightly below analyst expectations.
- Net profit also came in marginally below consensus estimates.
Q1 FY27 Financial Highlights
| Metric | Q1 FY27 | YoY Change |
|---|---|---|
| Revenue from Operations | ₹48,211 crore | +14% |
| Net Profit | ₹7,769 crore | +12.2% |
| Revenue Growth Guidance | 1.5%–3.0% (FY27) | Upper end reduced |
FY27 Revenue Guidance Trimmed
Despite reporting healthy quarterly growth, Infosys lowered the upper end of its FY27 constant-currency revenue growth guidance.
The company now expects:
- FY27 revenue growth of 1.5%–3.0%, compared with the earlier guidance of 1.5%–3.5%.
- Operating margin guidance remains unchanged.
Management cited:
- Continued weakness in discretionary client spending.
- Longer decision-making cycles.
- Ongoing macroeconomic uncertainty in key overseas markets.
AI Business Continues to Expand
Infosys said demand for artificial intelligence services continued to strengthen during the quarter.
Key highlights included:
- AI-related revenue now contributes 8.2% of total company revenue, up from 5.5% at the end of 2025.
- Growing enterprise adoption of AI transformation projects.
- Continued investment in Infosys Topaz and generative AI solutions.
The company also secured large deal wins worth $3.6 billion, including contracts with customers such as GlobalFoundries, Sterling Bank of Asia, and IHH Healthcare.
Business Highlights
| Area | Update |
|---|---|
| AI Revenue Contribution | 8.2% of total revenue |
| Large Deal Wins | $3.6 billion |
| Key Growth Driver | Enterprise AI adoption |
Ashiss Kumar Dash Named CEO-Designate
Infosys also unveiled its long-term succession plan.
The Board has:
- Appointed Ashiss Kumar Dash as CEO-designate with immediate effect.
- Approved his appointment as CEO and Managing Director from April 1, 2027.
- Confirmed that current CEO Salil Parekh will continue until March 31, 2027.
Dash has spent more than three decades at Infosys, most recently leading the company’s Energy, Utilities, Resources and Services business. He has held several leadership roles across consulting, digital transformation, and global client management.
Market Reaction
While Infosys delivered strong profit growth, investors focused on the reduction in revenue guidance.
Following the announcement:
- Infosys ADRs fell more than 4% in U.S. trading.
- Investors expressed concerns over slower discretionary technology spending and cautious demand outlook despite continued AI momentum.
Looking Ahead
Infosys’ first-quarter results highlight the contrasting forces shaping the global IT services industry. On one hand, the company continues to benefit from rising enterprise investment in artificial intelligence, strong large deal wins, and double-digit profit growth. On the other, cautious client spending and slower discretionary technology projects prompted management to lower the upper end of its FY27 revenue growth guidance. The results underscore that while AI is creating new opportunities, it has not yet fully offset broader macroeconomic uncertainty in global IT spending.
Looking ahead, attention will focus on Infosys’ ability to convert its growing AI pipeline into sustained revenue growth while navigating a challenging demand environment. Investors will also closely monitor the leadership transition to Ashiss Kumar Dash over the coming months, as the company prepares for its next phase of growth under a new chief executive from April 2027.
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