Bengaluru, October 27, 2026: Infosys has reduced its revenue growth guidance for fiscal 2027 to 1%–2%, from an earlier range of 1.5%–3%, underscoring the pressure facing India’s IT services industry as clients seek lower costs and greater productivity from artificial intelligence.
AI and competition weigh on pricing
Reuters reported on October 26 that Infosys shares fell during Monday’s trading after the revised outlook. Analysts cited by the news agency pointed to pricing pressure from AI-driven productivity demands, stronger competition, subdued spending by retail and high-technology clients, and some customers expanding their own global capability centres rather than outsourcing as much work.
Demand and contract changes add to the challenge
Analysts also pointed to weaker volumes, limited pricing increases and Infosys’ exit from a large European manufacturing contract. Macroeconomic uncertainty and clients reducing or delaying projects could weigh on growth in the second half of the fiscal year.
What the guidance means
The revised range is a forecast, not a guarantee of the final result. It suggests the company expects a more constrained near-term growth environment even as Indian IT firms invest in AI services. Investors will be watching whether AI-related demand translates into new revenue quickly enough to offset pricing pressure in traditional services.
Sources: Reuters — October 26 report; Infosys official media resources.
Market-price movements cited above refer to trading on October 26, not to a live quote for October 27.
