Infosys shares fall over 5% after weak FY27 guidance dampens sentiment. Despite strong Q4 results, concerns over slowing demand weigh on the IT sector outlook.

Infosys shares fell sharply on Friday, April 24, after investors reacted negatively to the company’s latest quarterly results and cautious outlook. The stock dropped more than 5% in early trade, touching a fresh 52-week low of ₹1,176.40 on the NSE. It later traded around ₹1,208, still significantly lower than the previous close and nearly 25% down since the start of the year.

The decline came despite Infosys reporting a solid profit performance for the March quarter. The company posted a 20.8% year-on-year increase in consolidated net profit at ₹8,501 crore. Revenue for the quarter also rose 13.4% to ₹46,402 crore compared to the same period last year. For the full financial year FY26, net profit grew 10.2% to ₹29,440 crore, while revenue increased 9.6% to ₹178,650 crore.

However, what unsettled investors was the company’s outlook for FY27. Infosys projected revenue growth of just 1.5% to 3.5% in constant currency terms, signaling slower demand ahead. Market analysts noted that while the March quarter results were largely in line with expectations, the weak guidance points to a lack of strong recovery in the IT services sector.

Management also highlighted slower decision-making by clients in March and increased competition, which added to market concerns. Several brokerages, including Kotak Securities, Jefferies, and Citi, responded by cutting their target prices for the stock.

Another factor affecting sentiment was the company’s decision not to disclose specific revenue figures from its AI segment, even though it reaffirmed strong growth in that area.

Despite the recent fall, some experts remain positive. Market analyst G Chokkalingam maintained a ‘buy’ rating, noting that the stock’s current valuation reflects broader negativity in the IT sector. He added that Infosys continues to offer healthy returns and a dividend yield of around 3.5%.

Business fortune observes that, with mixed signals from earnings and outlook, investors remain cautious as Infosys navigates a challenging demand environment, reflecting broader uncertainty in the IT sectors.

About the Author

Sowmiya Sri Mani is a writer for Business Fortune, covering AI, Robotics, Software, Entrepreneurship, and Opinion. She delivers clear and engaging insights on emerging trends and industrial developments, helping readers understand the evolving landscape of technology and innovation