{"slug": "infosys-cuts-revenue-forecast-as-it-service-demand-remains-muted", "title": "Infosys Cuts Revenue Forecast as IT Service Demand Remains Muted", "summary": "Infosys Ltd. cut the upper end of its sales growth outlook to 1.5%-3% for the fiscal year through March 2027, down from 1.5%-3.5%, as global clients slow technology spending amid elevated interest rates and geopolitical conflicts. The Indian IT giant reported first-quarter net income rose 12% to 77.8 billion rupees ($806 million), slightly below analyst estimates of 78.34 billion rupees, while revenue surged 14% to 482 billion rupees.", "body_md": "(Bloomberg) -- Infosys Ltd. cut the upper end of its sales growth outlook as global clients slow down technology spending at a time of elevated interest rates and geopolitical conflicts.\n\nMost Read from Bloomberg\n\n-\n[Retina Chip Designed to Restore Sight to Go on Sale in Europe](https://www.bloomberg.com/news/articles/2026-07-22/retina-chip-designed-to-restore-sight-to-go-on-sale-in-europe?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS) -\n[Hegseth Turns to UNC, Virginia Tech After Dropping Ivy League](https://www.bloomberg.com/news/articles/2026-07-22/hegseth-turns-to-unc-virginia-tech-after-dropping-ivy-league?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS) -\n[Apple Plans Overhaul of MacBooks, iMac in Push to Meet AI Demand](https://www.bloomberg.com/news/articles/2026-07-22/apple-to-launch-new-macbook-air-imac-macbook-pro-neo-mac-mini-mac-studio?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS)\n\nIndia's second-largest outsourcer said revenue will grow 1.5% to 3% in the fiscal year through March 2027 on a constant currency basis. In April, it had guided for 1.5% to 3.5% growth. Analysts were forecasting 3.4% on average.\n\nInfosys and larger homegrown rival Tata Consultancy Services Ltd. are slashing expenses and reducing graduate hiring as demand for legacy IT projects wanes, with clients turning their attention to artificial intelligence. The Indian IT giants are trying to grab a share of the AI spending, while also using the technology to boost their own efficiency.\n\nShares of Infosys and TCS have declined more than 40% since the start of last year as investors assess the impact AI will have on their long-term prospects.\n\nThe AI boom poses a major threat to India's $280 billion IT services industry that's thrived for decades on labor arbitrage and transformed the country into the world's back office. While AI tools from OpenAI and Anthropic PBC are threatening to drive clients away, Infosys says it remains a key partner to its customers' transformation projects. It already embeds AI into its offerings in a bid to curb costs and convince corporations to maintain or enhance their IT budgets.\n\nSome IT service providers, like Mumbai-based TCS, have begun to pivot their business. The Tata Group company has partnered with OpenAI to build AI data centers and is in similar discussions with other tech giants.\n\nOn Thursday, Infosys said its net income rose 12% to 77.8 billion rupees ($806 million) for the first quarter through June 2026. Analysts estimated 78.34 billion rupees on average. Revenue surged 14% to 482 billion rupees, partly helped by a decline in the Indian rupee versus the dollar and euro.\n\nWhat Bloomberg Intelligence Says\n\nWeak enterprise demand is likely to frame Infosys' 1Q results, with discretionary IT budgets still constrained by geopolitical uncertainty, tariff risk and AI-driven reprioritization.\n\n- Tamlin Bason and Anurag Rana, analysts\n\nClick here for research", "url": "https://wpnews.pro/news/infosys-cuts-revenue-forecast-as-it-service-demand-remains-muted", "canonical_source": "https://ca.finance.yahoo.com/news/infosys-cuts-revenue-forecast-demand-110904155.html", "published_at": "2026-07-23 11:09:04+00:00", "updated_at": "2026-07-23 12:23:34.221827+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-startups"], "entities": ["Infosys Ltd.", "Tata Consultancy Services Ltd.", "OpenAI", "Anthropic PBC", "Bloomberg Intelligence", "Tamlin Bason", "Anurag Rana"], "alternates": {"html": "https://wpnews.pro/news/infosys-cuts-revenue-forecast-as-it-service-demand-remains-muted", "markdown": "https://wpnews.pro/news/infosys-cuts-revenue-forecast-as-it-service-demand-remains-muted.md", "text": "https://wpnews.pro/news/infosys-cuts-revenue-forecast-as-it-service-demand-remains-muted.txt", "jsonld": "https://wpnews.pro/news/infosys-cuts-revenue-forecast-as-it-service-demand-remains-muted.jsonld"}}