Infosys reported a solid start to FY27, with artificial intelligence contributing an increasing share of its business. The company said AI-related work now generates 8.2% of its total revenue as it posted double-digit profit and revenue growth in the June quarter, while slightly reducing the upper end of its full-year revenue guidance due to ongoing global economic uncertainty.

The country’s second-largest IT services company posted a consolidated net profit of ₹7,769 crore for the first quarter of FY27, marking a 12.2% increase compared to the same period last year. However, profit declined 9.3% from the previous quarter.

Revenue from operations rose 14% year-on-year to ₹48,211 crore, while quarterly revenue increased 3.9%. In dollar terms, revenue reached $5.08 billion, growing 2.4% annually and 1% sequentially.

Infosys also improved its operating performance, with the operating margin reaching 21.1%, up 30 basis points year-on-year and 10 basis points from the previous quarter.

The company secured large deal wins worth $3.6 billion during the quarter, with 61% coming from new business, highlighting strong demand for AI-driven digital transformation projects.

Speaking after the results, CEO Salil Parekh said AI continues to be one of the company’s fastest-growing businesses. He noted that AI revenue has been expanding at a double-digit pace quarter after quarter and is becoming increasingly important for enterprise clients looking to modernize their operations.

Infosys Lowers Upper-End Revenue Forecast

Infosys revised its FY27 constant currency revenue growth guidance to 1.5%–3.0%, compared with the earlier forecast of 1.5%–3.5% announced after the previous quarter. The company, however, maintained its operating margin guidance of 20%–22%.

Parekh explained that while the company still expects macroeconomic conditions to improve, the recovery may not be as strong as initially anticipated. He also mentioned that a one-time client-related decision affected revenue during the quarter.

Ashiss Kumar Dash Named CEO Designate

Alongside its quarterly earnings, Infosys announced a major leadership transition. The board has appointed Ashiss Kumar Dash, a long-serving Infosys executive with nearly three decades at the company, as CEO Designate, effective immediately.

Dash will officially take over as Chief Executive Officer and Managing Director on April 1, 2027, replacing Salil Parekh, whose second term will conclude after leading the company for more than nine years.

AI Strategy Gains Momentum

Infosys said its AI platform Topaz played a significant role in securing major client contracts during the quarter. The company is also expanding its AI talent by planning to build a team of 6,000 frontier engineers over the next few years.

To strengthen enterprise AI adoption, Infosys introduced Topaz Fabric, a platform designed to help organizations use AI while ensuring their business data remains secure and under their own control.

During the quarter, Infosys expanded its partnership with Mercedes-Benz Group AG to modernize hybrid cloud and data center operations using AI. The company also partnered with OpenAI to help enterprises deploy Codex, OpenAI’s coding agent platform, for large-scale software modernization, automated code reviews, and security improvements.

Additionally, Infosys announced a collaboration with software delivery platform Harness to support enterprise modernization initiatives.

Regional Performance and Workforce

North America remained Infosys’ largest market, contributing 56.35% of total revenue. Revenue contribution from India declined to 2.46%, while Europe recorded a higher share compared with the same quarter last year.

The company ended the quarter with a workforce of 328,062 employees, down by 532 employees sequentially but higher by 4,274 employees year-on-year. Employee benefit expenses increased 10.7% to ₹25,287 crore.

Voluntary attrition rose slightly to 13%, compared with 12.6% in the previous quarter.

Infosys shares ended trading on July 23 at ₹1,052.90 on the NSE, closing marginally higher after the earnings announcement.

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