Infosys shares fell 2.5% after the IT major reported its Q1 FY27 results, trimmed its FY27 revenue growth guidance, and announced a CEO transition. While net profit rose 12.3% year-on-year and the company secured strong large deal wins, investors remained concerned about slower revenue growth and a cautious outlook. The leadership transition and muted demand in the global IT services market further weighed on sentiment.
Infosys share price declined 2.5% to the day’s low of ₹1,023.30 on BSE on Thursday after the IT major announced its Q1 FY27 results, reduced its revenue growth guidance for FY27, and revealed a leadership transition plan.
Although Infosys reported a strong year-on-year rise in net profit, investors reacted negatively to the cautious growth outlook and the announcement of a new CEO-designate. The company’s American Depositary Receipts (ADR) also witnessed pressure in the US market after the results.
Infosys Q1 FY27 Results: Profit Rises 12.3% YoY, Revenue Growth Remains Steady
Infosys reported a consolidated net profit of ₹7,769 crore for the April-June quarter of FY27, registering a 12.3% increase compared with ₹6,921 crore in Q1 FY26.
However, on a sequential basis, net profit declined 8.6% from ₹8,501 crore reported in Q4 FY26.
Revenue from operations stood at ₹48,211 crore during Q1 FY27, marking a growth of 14% YoY compared with ₹42,279 crore in the same quarter last year. On a quarter-on-quarter basis, revenue increased 3.9% from ₹46,402 crore in Q4 FY26.
In constant currency terms, Infosys revenue grew 2.4% YoY and 1% QoQ. The company’s EBIT increased 15.4% YoY and 4.3% QoQ to ₹10,163 crore, while EBIT margin improved to 21.1% from 20.8% in the previous year.
The company’s basic earnings per share (EPS) stood at ₹19.19, rising 14.9% YoY. Have a look at the Results on Ventura.
Why Infosys Share Price Fell After Q1 Results
The major reason behind the decline in Infosys shares was the reduction in FY27 revenue growth guidance. The company narrowed its constant currency revenue growth forecast to 1.5%-3% from the earlier guidance of 1.5%-3.5%.
While the company maintained its operating margin guidance at 20%-22%, investors remained cautious due to slower demand conditions in the global IT services sector.
The company’s ADR declined as much as 5.76% to $10.30 on the New York Stock Exchange before closing 2.01% lower at $10.71.
Despite strong profitability and deal wins, concerns over muted revenue growth and uncertainty around future expansion impacted investor sentiment.
Infosys Announces CEO Transition Plan
Along with the quarterly results, Infosys announced the appointment of Ashiss Kumar Dash as CEO-designate. He will take charge as Chief Executive Officer and Managing Director from April 1, 2027, for a five-year term.
Current CEO Salil Parekh will continue leading the company until March 31, 2027, after which the transition process will be completed.
Infosys Chairman Nandan Nilekani said the board selected an internal leader who can drive transformation while maintaining customer trust and the company’s core values.
Large Deal Wins and Business Performance
Infosys reported large deal total contract value (TCV) of $3.6 billion in Q1 FY27, compared with $3.2 billion in Q4 FY26.
The company highlighted strong AI momentum, with investments in AI, talent and platforms aimed at driving future growth.
Among key segments, financial services revenue increased 2.4% YoY in constant currency terms, while life sciences grew 24%. Energy, utilities, resources and services revenue increased 1.3%, communication grew 1.3%, and hi-tech revenue rose 2.4%. Retail revenue declined 1.8%.
Geographically, North America revenue grew 3.2% and Europe increased 2.8%, while India revenue declined 4.2% in constant currency terms.
Infosys Employee Count and Outlook
Infosys’ employee strength declined by 52 employees during the quarter, with total headcount at 3,28,062 compared with 3,28,594 in Q4 FY26.
The last twelve-month voluntary attrition rate increased to 13% from 12.6% in the previous quarter but improved from 14.4% recorded in Q1 FY26.
While the short-term outlook remains cautious due to slower revenue growth expectations, Infosys continues to focus on AI-led transformation, large deal wins and maintaining margins. The stock movement will largely depend on execution of growth plans and the smooth transition to new leadership.
