July 31, 2026 at 10:18 AM 2 min readtechNews Insights
Infosys Reports Q1 Net Profit Up 12.3% as AI Services Drive 8.2% of Revenue
The IT major posted a consolidated net profit of ₹7,769 crore while securing $3.6 billion in large deal wins during the quarter.
Robust Q1 Financial Performance:
Infosys reported a 12.3% year-on-year rise in consolidated net profit to ₹7,769 crore for the April-June quarter of FY27. Revenue from operations increased by 14% year-on-year to ₹48,211 crore, while constant currency revenue grew by 2.4% compared to the previous year.
AI Services Momentum and Deal Wins:
Artificial intelligence-related services generated 8.2% of Infosys' overall revenue in Q1 FY27, maintaining strong double-digit sequential growth. The company secured large deal wins worth $3.6 billion, with 61% representing net new business additions.
Guidance Revision and Margins:
Operating margin stood at 21.1%, reflecting a slight improvement. However, Infosys revised its FY27 constant currency revenue growth guidance to 1.5%-3%, narrowing the upper end due to softer macroeconomic volumes and a client contract termination.
Pulse Intelligence
Context & ImpactContext & Background
- Infosys is India's second-largest IT services company by revenue.
- The company previously maintained a constant currency revenue growth guidance range of 1.5%-3.5% for the fiscal year.
Key Consequences
- IT sector analysts will closely monitor the scaling trajectory of artificial intelligence services across major tech firms.
- Narrowed annual revenue guidance reflects ongoing macroeconomic caution and soft client discretionary spending volumes.
Market & Economic Impact
Influences IT sector valuations and investor sentiment regarding enterprise artificial intelligence monetization.
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