Infosys Q1: AI Revenue Hits 8.2%, Margin Resilient at 21.1%, Guidance Raised
INFY is trading near its 52-week low of $10.34 (0.2% below the low).
Summary
Infosys reported Q1 FY27 revenue of $5.08 billion, up 2.4% YoY in constant currency, with operating margin at 21.1%—a 0.3% YoY increase. AI now accounts for 8.2% of revenue, signaling rapid conversion of AI momentum into tangible sales. Large deal wins totaled $3.6 billion, 61% net new, underscoring strong demand for its AI-led services. Free cash flow reached $955 million, a 116.5% conversion of net profit. The company revised FY27 revenue growth guidance to 1.5%-3.0% in constant currency, up from prior implied range, while retaining margin guidance of 20%-22%. This follows a series of strategic collaborations announced in recent months, including with DNB Bank and GlobalFoundries, and the $2 billion buyback disclosed in the 20-F. The stock trades near its 52-week low, making these resilient results and improved outlook a potential catalyst for re-rating.
At the time of this announcement, INFY was trading at $10.32 on NYSE in the Technology sector, with a market capitalization of approximately $44.2B. The 52-week trading range was $10.34 to $30.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: PR Newswire.