Infosys Q1FY27 highlights: Names Ashiss Kumar Dash as next CEO, 6,000 Forward Deployed Engineers planned; ADR slides 5%

Commenting on Dash's appointment, Salil Parekh, MD & CEO, Infosys said, " Having worked closely with Dash over many years, I have seen first-hand his integrity, customer focus, and ability to lead through change. He brings a deep understanding of our clients, our business, and our people, together with the vision and capability to lead Infosys through its next phase of transformation. I look forward to working closely with him over the coming months to ensure a smooth and successful transition.”

Infosys American Depositary Receipts fell around 6% in pre-market trading in New York as the company cut its revenue guidance for FY27 to 1.5%-3% from 1.5%-3.5%.

In early trade on the NYSE, Infosys ADR was quoted at $10.35, down 5.3%.

Infosys reported its total Q1FY27 income at Rs 49, 195 crore, up 13% from Rs 43,321 crore posted in the same quarter last year. On a sequential basis, the IT firm's income expanded 3% from Rs 47,561 crore reported in the preceding quarter.

Infosys reported its Q1FY27 total expenses at Rs 38,167 crore, advancing 13% from Rs 33,581 crore reported in the year-ago period. Sequentially, total expenses were up around 4% from Rs 36,764 posted in the trailing quarter.

Salil Parekh says there is a demand for AI across most industries. He added that AI is being deployed across various wings of an enterprise. Parekh added that if Infosys can transition towards the AI spectrum, AI will start to become a 'more and more' part of its revenue.

He added that a big transformation and long support may be seen within the AI wing, through partnerships with AI foundational companies.

Infosys reported its total number of clients at 2,027, rising 8.9% from 1,861 reported during the same period last year.

Infosys total employee count for the quarter ended June 2026 stood at 328,062, down 1.3% from 323,788 reported in the same period last year.

On the geographical front, Infosys generated the majority of client revenue from North America, with 56.4% of revenue for Q1FY27 from there. This was followed by 32.1% from Europe, 2.5% from India, and 9% from rest of the world.

The company derived 27.9% of its revenue from its financial services wing, 15.9% from the manufacturing segment, and 13.4% from its Energy, Utilities, Resources & Services.

The company posted AI revenue as 8.2% of the total revenue, the company said.

“We will roll out salary hikes in October and January in three parts. Most employees will get hikes in October, while senior employees will get them in January. Our AI mandate is well put, and CEO-designate Ashiss Kumar Dash has been an integral part of it,” Salil Parekh said.

The American Depository Receipts (ADRs) of Infosys were down nearly 5% in pre-market trading, with the IT major estimating its revenue growth at 1.5%-3.5% for FY27

Commenting on the financial performance, Jayesh Sanghrajka, CFO, said, “Our resilient margins of 21.1% and consistent strong cash generation reflect the strength of our business model, disciplined execution and continued focus on operational excellence in a challenging business environment.”

He added, “We are accelerating investments in AI, talent, and platforms to drive future growth and remain committed to improving productivity, expanding operating leverage and maintaining the financial flexibility needed to capitalize on emerging opportunities while delivering sustainable shareholder value.”

For Q1FY27 the company's Revenue in CC terms grew 2.4% YoY

The IT giant posted its large deal total contract value at $3.6 billion, with 61% being net new additions.

Ashiss Kumar Dash, CEO Designate, for Infosys said, "I am honoured by the confidence that the Board has placed in me and excited about the opportunity to lead Infosys into its next chapter. I would also like to thank Salil for his mentorship, guidance, and the countless opportunities for growth over the years. I look forward to collaborating with him to ensure a seamless transition. "

Dash emphasised the importance of embedding AI across the enterprise, "Technology is entering a new era, with AI fundamentally reshaping how businesses operate and create value. Infosys begins this next phase from a position of enormous strength—with a clearly articulated AI strategy, exceptional talent, deep client relationships, and values that have earned the trust of customers globally. My commitment is to build on those strengths while accelerating innovation, expanding our capabilities and helping our clients succeed in an increasingly AI-driven world. Together with the outstanding leadership team, all my colleagues, customers and partners, I look forward to shaping the next chapter of Infosys journey and creating enduring value for all our stakeholders," he added.

Speaking on the managerial reshuffle, Nandan Nilekani, Chairman of the Board, Infosys said, “The Board is delighted to appoint Dash as CEO Designate. Our industry is entering a period of considerable change. The Board was clear that our next CEO needed to combine the ability to drive bold transformation with the judgment to preserve the values and customer trust that have always distinguished Infosys. It gives me great pleasure that we have an internal leader as our next CEO.

He added, "On behalf of the Board, I also thank Salil for his outstanding leadership over 9 years. Under his stewardship, Infosys has strengthened its market position, expanded its capabilities, delivered significant value to shareholders, and built a strong platform for future growth. Salil has been instrumental in the turnaround of the company, establishing its leadership in the digital era, and for laying the foundation for a strong and differentiated AI strategy. He will continue to lead the Company until March 31, 2027, and work closely with Dash to ensure a seamless leadership transition."

Commenting on the management shift Salil Parekh, MD & CEO, Infosys said, "It has been an honour for me to be the custodian of such a prestigious company, to partner with the leading companies of the world as clients, and to collaborate with an incredible team. I have enjoyed leading the company from $10 billion in revenue to over $20 billion in revenue through my two terms. We have established Infosys as a leader in digital transformation and have put in place a distinctive strategy for AI transformation."

He added, " We have built a strong leadership team through this journey that is deeply committed to a One Infosys agenda. Having worked closely with Dash over many years, I have seen first-hand his integrity, customer focus, and ability to lead through change. He brings a deep understanding of our clients, our business, and our people, together with the vision and capability to lead Infosys through its next phase of transformation. I look forward to working closely with him over the coming months to ensure a smooth and successful transition."

Infosys Guidance for FY27:

* Revenue growth of 1.5%-3.0% in constant currency terms

* Operating margin of 20%-22%

Ashiss Kumar Dash will come into appointment with immediate effect. He will succeed Salil Parekh as the Managing Director and Chief Executive Officer of Infosys.

On a sequential basis, its revenue climbed nearly 4% from Rs 46,402 crore reported in the trailing quarter.

"Based on the recommendations of the Nomination and Remuneration Committee, effective today, the Board approved and appointed Ashiss Kumar Dash as the Chief Executive Officer Designate (“CEO Designate”) of the Company until March 31, 2027. Further, the Board approved its intention to appoint Ashiss Kumar Dash as the Chief Executive Officer and Managing Director of the Company with effect from April 1, 2027, upon fulfilment of all statutory requirements," Infosys said in its regulatory filing.

Sequentially, the profit fell 8% from Rs 7,775 crore posted in Q4FY26.

The company's Q1FY27 revenue from operations was posted at Rs 48,211 crore, expanding 14% from Rs 42,279 crore reported in Q1FY26.

Infosys reported a rise of 12% YoY rise in its consolidated net profit of Q1FY27 at Rs 7,769 crore from Rs 6,921 crore.

Yes Securities also believes Infosys will report a steady performance in Q1FY27. The brokerage expects the company to post revenue of around Rs 47,550 crore, up 12.5% year-on-year (YoY) and 2.5% quarter-on-quarter (QoQ). In constant currency (CC) terms, which excludes the impact of exchange rate movements, revenue is expected to grow 3.4% YoY and 1.6% QoQ.

Infosys is expected to report stable operating margins in Q1FY27. The gains from the weaker rupee are likely to be offset by higher costs related to its recent acquisitions, according to Kotak Institutional Equities.

The brokerage expects Infosys to report large deal wins worth around $2.5-2.75 billion, which would be broadly unchanged compared with the year-ago period.

Deven Choksey expects Infosys to report a steady Q1FY27 performance. Revenue is likely to grow 1.4% sequentially and 3.4% year-on-year in dollar terms, helped partly by the acquisition of Optimum Healthcare and Stratus, which are expected to contribute around 0.8% to growth.

Kotak Institutional Equities forecast Infosys' organic revenue growth of 0.9% due to seasonal strength, led by additional billing days. "Growth is likely to be weaker than historic average due to macro and AI deflation headwinds," Kotak noted.

Infosys is expected to report revenue growth of 5.4% QoQ, driven by deal ramp-ups and improved performance across key verticals. “EBIT margins are likely to improve by 27 bps QoQ, supported by the absence of wage hikes and benefits from the Project Maximus cost optimisation program,” Axis Direct said.