Infosys Cuts FY27 Guidance to 1%-2% Despite $5.2B in Large Deals and AI Growth

Infosys, India's second-largest IT services exporter, has lowered its revenue growth forecast for fiscal year 2027 to just 1%-2%, even as it announced $5.2 billion in large deal wins during the quarter. The subdued outlook comes despite artificial intelligence now contributing 10.5% of total revenue, underscoring a challenging demand environment for IT services. The company's largest new deal, which is expected to be a significant revenue driver, will only begin ramping up next year, leaving a near-term gap in growth momentum. This cautious guidance highlights how even major contract signings may not immediately translate into top-line expansion amid client spending delays and macroeconomic uncertainty. For investors and industry watchers, the update signals that Infosys is prioritizing long-term deal wins over short-term revenue acceleration, but the delayed impact raises questions about near-term profitability. As AI adoption accelerates, Infosys is betting on next-generation services to drive future growth, yet the current fiscal year remains a period of transition. The road ahead depends on how quickly these large deals convert into billable work.