Bengaluru: Infosys shares fell nearly 5% in early trading on the New York Stock Exchange on Thursday after the company reported weaker-than-expected June quarter results and trimmed its FY27 revenue growth guidance, signalling a cautious demand environment amid persistent macroeconomic uncertainty.For the June quarter, Infosys posted 1% sequential and 2.4% year-on-year revenue growth in constant currency. In reported terms, revenue rose 0.8% sequentially and 2.8% year-on-year to just over $5 billion. By comparison, TCS reported June-quarter revenue of $7.6 billion, up 2.7% year-on-year and largely flat sequentially, while HCLTech posted revenue of $3.6 billion, down 0.9% sequentially but up 3% year-on-year. In constant currency, TCS grew 0.4% sequentially and 3.2% year-on-year, while HCLTech declined 0.5% sequentially but grew 2.6% year-on-year. Wipro’s IT services revenue stood at $2.6 billion, down 1.4% sequentially but up 1% year-on-year. In constant currency, Wipro’s revenue declined 1.2% sequentially and increased 0.9% year-on-year.Infosys’s operating margin was 21.1%, up 20 basis points sequentially and 30 basis points from a year earlier.The IT firm narrowed its FY27 constant currency revenue growth guidance to 1.5%-3% from the earlier 1.5%-3.5%, citing continued macroeconomic uncertainty. It, however, retained its operating margin guidance of 20%-22%.“On the revised guidance, we had a one-time client-related impact that I mentioned earlier. Beyond that, the broader macroeconomic environment remains uncertain, and we also saw volume-related factors during the quarter,” Infosys CEO Salil Parekh said during the earnings conference on Thursday.Infosys signed large deals worth $3.6 billion during the quarter, with 61% comprising net new business. The company also benefited from six vendor consolidation deals, four of which were valued at just under $500 million, underscoring continued demand for large transformation contracts despite the uncertain macroeconomic environment.“While the deal pipeline remains strong, we no longer expect the macroeconomic environment to improve as much as we had anticipated earlier. That’s why we revised our guidance,” Parekh said.He said Infosys remained well-positioned to capitalise on the AI opportunity. “AI revenues, now accounting for 8.2% of overall revenue, have been growing at a double-digit sequential rate for the past several quarters. With this momentum, we see our AI-led services remaining highly relevant for clients over the long term. When we outlined our AI strategy, we identified a $300-billion addressable market opportunity. That represents entirely new revenue streams while productivity gains continue across client engagements.”The company’s headcount declined by 592 employees during the June quarter to around 3.2 lakh. Parekh said Infosys is building a team of frontier engineers to support client AI engagements and plans to scale it to 6,000 engineers over the next few years. Infosys also reiterated its campus hiring plans. The company added more than 20,000 fresh graduates in FY26 and expects to recruit a similar number in FY27.On employee compensation, Infosys CFO Jayesh Sanghrajka said salary hikes would be implemented in phases during October and January, in line with the schedule already communicated to employees. “Most employees will receive their salary increases in October, while senior employees will receive theirs in January,” he said.
