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Infosys May Cut FY27 Guidance Amid Muted Organic Growth; Acquisitions Offer Q2 Boost
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CNBC TV18•29-09-2026, 14:31
Infosys May Cut FY27 Guidance Amid Muted Organic Growth; Acquisitions Offer Q2 Boost
- •Infosys is expected to lower its FY27 revenue growth guidance due to subdued organic growth, with brokerages predicting a narrowed range of 1%-2.5%.
- •Acquisitions are anticipated to provide significant support to reported growth, cushioning the impact of weak organic performance for Infosys and other IT firms.
- •HCLTech is projected to maintain its organic growth outlook while raising its reported constant-currency growth guidance to 3.0%-4.0% due to acquisitions like Jaspersoft and HPE Telco Solutions.
- •Several IT companies, including Coforge, Wipro, Hexaware, Mphasis, and Persistent Systems, are set to benefit from acquisition-led growth in the September quarter.
- •AI-driven deflation remains a structural concern, potentially leading to 3%-3.5% annual revenue deflation for Indian IT services, though AI could generate new demand in the long term.
Key Questions Answered
Infosys Ltd. is expected to lower its FY27 constant-currency revenue growth guidance from its current 1.5%-3.0% range as muted organic growth continues to impact the IT services sector.
Infosys is expected to see around 50 basis points of full-quarter revenue contribution from its Optimum Healthcare acquisition during the second quarter.
Kotak estimates that AI-driven revenue deflation could amount to around 3% to 3.5% annually for Indian IT services as companies use AI more efficiently and pass productivity gains to clients.
