Infosys, India’s second-largest IT services company, reported a 12.2% year-on-year (YoY) rise in its consolidated net profit to Rs 7,769 crore in Q1FY27, while revenue increased 14% YoY to Rs 48,211 crore. However, What surprised the market in this quarter’s earnings announcement was the appointment of a new CEO, a trimmed revenue guidance, and plans to add 6,000 Forward Deployed Engineers. Infosys also announced timeline for wage hike.
Here are 5 key highlights from Infosys Q1FY27
1. Infosys cuts FY27 revenue growth outlook
The Bengaluru-based company also cut the upper end of its revenue growth forecast to 3% from an earlier 3.5% forecast. The Bengaluru-based firm narrowed its fiscal 2027 revenue growth forecast to 1.5%-3.0% from 1.5%-3.5%, citing cautious client spending amid AI-driven disruption.
2. Infosys Q1FY27 EBIT rises 15.4%; Margin guidance at 20-22%
The IT major’s operating profit (EBIT) stood at Rs 10,163 crore, up 15.4% YoY and 4.3% QoQ. Operating margin improved to 21.1%, compared with 20.8% a year ago and 21.0% in the March quarter.
While commenting on AI Infosys Management said that AI services accounted for 8.2% of Infosys’ revenue currently compared with 5.5% in the December quarter.
The company sees operating margin guidance of 20% to 22%.
3. Infosys to roll out wage hikes in two phases
Infosys’ total headcount stood at 328,062, declined by 532 employees from Q4FY26. Voluntary attrition increased to 13.0% from 12.6% reported in the previous quarter. The company earlier deferred to announce a wage hike in April. While announcing Q1FY27, Infosys said that the compensation hikes will be rolled out in October and January in 2 parts. “Most employees will get hikes in October, while senior employees will get them in January,” Salil Parekh said.
Infosys CEO Salil Parekh said the company had recruited over 4,000 college graduates during the quarter and is on track to hire 20,000 freshers through the year. “We are recruiting, and plan to recruit 20,000 college graduates this year,” Parekh said.
4. Infosys bags $3.6 billion in large deals
Large order bookings, or deals over $30 million, stood at $3.6 billion during the quarter, compared with $3.2 billion in the previous quarter and $3.8 billion in the year-ago period.
The company bagged deals from Sterling Bank of Asia, semiconductor maker GlobalFoundries , Malaysia-based hospital chain IHH Healthcare.
5. Infosys named Ashiss Kumar Dash as new CEO
Current CEO Salil Parekh’s term ends in March next year and Infosys announced Ashiss Kumar Dash as designate CEO. He will lead Infosys for the next 5 years from April 1, 2027.
Conclusion
While both profit and revenue grew on a yearly basis, both metrics declined on a sequential basis. Net profit fell 8.6% from Rs 8,501 crore in the previous quarter. Revenue rose 3.9% quarter-on-quarter (QoQ).
In constant currency (CC) terms, Infosys reported revenue growth of 2.4% YoY and 1.0% QoQ. In reported terms, revenue increased 2.8% YoY and 0.8% QoQ.
