The damage was immediate in New York. Infosys ADRs slid 8% in pre-market trading on Friday, October 23, hitting $12.15 by 8:16 am EDT. That’s a steep dive from the previous close of $13.22. The trigger? A quiet but significant downgrade in the company’s full-year revenue growth guidance for FY27.
CFO Jayesh Sanghrajka told CNBC-TV18 that the cut reflects a reality check: subdued volumes, aggressive pricing pressure, and higher productivity expectations are squeezing the top line. He pointed specifically to weakness in retail and high-tech sectors, where discretionary spending has lagged forecasts. It’s a stark admission from India’s second-largest IT major.
The quarterly numbers themselves were unremarkable. Revenue came in at $5,145 million, barely missing the CNBC-TV18 poll estimate of $5,151 million. Sequential growth was 1.3% in dollar terms and 1.2% in constant currency, slightly below the Street’s 1.4% expectation. EBIT stood at ₹10,330 crore, with a 21% margin. That’s below the 21.3% expected and the 21.1% from the previous quarter.
Sanghrajka broke down the margin erosion. A 70-basis-point hit came from post-sale customer support, and a 20-basis-point drag from acquisitions. These were partially offset by a 40-basis-point currency benefit and a 20-basis-point gain from Project Maximus, the company’s cost-efficiency initiative. He warned that employee compensation costs and continued pricing pressure will likely weigh on margins in the second half of the year.
Back in India, the reaction was muted. Infosys shares ended nearly flat on the NSE, rising a negligible 0.04% to ₹1,153.80. The stock is up 13.1% over the past month but remains down 29.2% year-to-date. The market seems to be holding its breath, waiting to see if Project Maximus can truly offset the structural headwinds Sanghrajka outlined.