INFY – F1Q27 Results: Running on Empty; Remain Neutral

研报英文原文证据摘录

INFY – F1Q27 Results: Running on Empty; Remain Neutral

July 24, 2026

Jonathan Lee jonathan.lee@guggenheimpartners.com INFY – F1Q27 Results: Running on Empty; Remain

212 518 5388 Neutral

Alexa Ong

alexa.ong@guggenheimpartners.com

212 416 5842 Key Message: Weakness in F1Q27 was underpinned by a one-off client program

termination and softer-than-anticipated volumes and pricing, with management trimming

the high end of its FY27 revenue growth outlook, now reflecting +1.5–3.0% y/y cc

revenue growth (vs. +1.5–3.5% y/y cc prior). While the headline revision looks modest,

inorganic contribution (c. +170bps vs. +25bps prior) implies an approximate 170bps INFY NEUTRAL organic cut at the midpoint. Management's commentary reinforced ongoing AI-driven

Infosys Limited deflationary pressure, intensifying pricing competition, and elongated decision-making, Sector: IT Services

with headwinds skewed toward F2H. While AI-driven revenue (8.2% of revenue, up from

Earnings Release 5.5% in F3Q26) remains a positive, we believe the magnitude of the organic cut is unlikely

to sit well against already elevated concerns around industry-wide headwinds. Given Share Price $10.67

INFY's premium valuation vs. peers and headwinds unlikely to abate in the near-term,

Price Target NA we remain sidelined.

Revenue ($M) Ongoing demand pressure drives FY27 organic growth outlook lower. A challenging

(FY MAR) 1Q 2Q 3Q 4Q FY quarter set the stage for INFY's negative FY27 revenue growth outlook revision, with the

2026 4,941 5,076 5,099 5,040 20,156 revised outlook of +1.5–3.0% y/y cc (vs. +1.5–3.5% y/y cc prior) representing a meaningful

2027 5,082 5,185E 5,200E 5,091E 20,558E organic revision once acquisition contribution is normalized. Inorganic support now stands