- Company name
- Infosys
- Sector
- IT services & consulting
- About
- Infosys is an Indian IT services and consulting company based in Bengaluru. It builds, runs and modernizes software and IT systems for large companies, mostly in North America and Europe, in sectors such as financial services, retail, communications, energy, manufacturing and life sciences. Most of its engineers work in India, and it also has offices and delivery centers in the United States, Europe and other regions. It sells AI services under the Infosys Topaz name and cloud services under the Infosys Cobalt name, and it owns Finacle, a banking software product. Revenue was $20,158 million in fiscal 2026, which ended on March 31, 2026, and $5,145 million in Q2 fiscal 2027, which ended on September 30, 2026. Its American depositary shares trade on the New York Stock Exchange, and each represents one share.
- Thesis
- The market prices Infosys for slow growth and for the fear that AI tools will lower the amount of IT services work that clients buy. Revenue grew 1.5% in constant currency in Q2 fiscal 2027. In October 2026, Infosys cut its fiscal 2027 revenue growth guidance for the second time, to 1% to 2%, from 1.5% to 3.0%. Investors fear that AI can do part of the coding, testing and support work that Indian IT firms sell. US immigration rules add risk: on October 9, 2026, the US Department of Labor suspended new and pending permanent labor certification applications for some companies, including Infosys. Infosys said that it does not expect a material impact. Other results are steady: the operating margin was 21.0%, large deal wins were $5.2 billion, including one deal of more than $2 billion, and AI work was 10.5% of revenue in Q2 fiscal 2027. For the gap to close, three things must be true. Revenue growth must rise in fiscal 2028, as the large deals turn into revenue. The operating margin must stay within the 20% to 22% guidance. The labor certification suspension and other US immigration actions must not limit how Infosys staffs its US projects. The Q3 fiscal 2027 report, expected in January 2027, and the fiscal 2028 guidance in April 2027 are the main tests. If they pass, the gap can close over the next four to six quarters. The main reason it may not close is a lasting fall in demand for traditional IT services because of AI.
- Risks
- AI tools can automate part of software development, testing and IT support. Clients can buy less work from IT services firms, or they can ask for lower prices.
Many Infosys projects in the United States depend on visas and work permits. The US Department of Labor suspended Infosys's permanent labor certification applications in October 2026. More restrictions or higher visa costs can raise costs or delay projects.
Clients in the United States and Europe can cut discretionary IT spending when their economies weaken. Revenue growth was in the low single digits in fiscal 2026 and in the first half of fiscal 2027, and Infosys expects only 1% to 2% growth in fiscal 2027.
Infosys reports in US dollars but has most of its costs in Indian rupees. Changes in exchange rates can move margins.
- Balance sheet
- Cash: $4.0B
Debt: $0.0M
Net cash: $4.0B
Infosys has no material borrowings and holds a large amount of cash. At September 30, 2026, cash and cash equivalents were $2,541 million and current investments were $1,436 million. Total assets were $17,060 million and total equity was $10,389 million. Total liabilities were $6,671 million, mostly trade payables, employee obligations, unearned revenue and other operating liabilities, with $516 million of non-current lease liabilities. Goodwill and other intangible assets rose to $2,013 million at September 30, 2026, from $1,576 million at March 31, 2026, because of acquisitions. Free cash flow was $928 million in Q2 fiscal 2027 and $1,883 million in the first half of fiscal 2027.
As of Sep 30, 2026.
- Checkpoints
- Oct 23, 2026: Q2 fiscal 2027 results: growth and guidance. Failed. Watch: Revenue growth guidance of 1.5% to 3.0% kept or raised, an operating margin within 20% to 22% and strong large deal wins pass; another guidance cut fails. Outcome: Infosys cut its fiscal 2027 revenue growth guidance again, to 1% to 2%, although the operating margin was 21.0% and large deal wins were $5.2 billion.
Jan 23, 2027 (estimate): Q3 fiscal 2027 results: growth and the large deal ramp. Pending. Watch: Revenue growth guidance of 1% to 2% kept or raised, an operating margin within 20% to 22% and large deal wins of $3 billion or more pass; another guidance cut fails.
Apr 2027 (estimate): Fiscal 2027 results and the fiscal 2028 guidance. Pending. Watch: Fiscal 2028 revenue growth guidance above the fiscal 2027 result with a steady margin passes; lower growth guidance fails.
- Recent events
- Oct 23, 2026: Infosys reported Q2 fiscal 2027 results. Revenue rose 1.5% in constant currency to $5,145 million, the operating margin was 21.0% and basic EPS was $0.20. Large deal wins were $5.2 billion, with 62% net new, and they include one deal of more than $2 billion. AI revenue was 10.5% of the total and grew 29% from Q1. Free cash flow was $928 million. Infosys cut its fiscal 2027 revenue growth guidance to 1% to 2% in constant currency and kept its operating margin guidance of 20% to 22%. Press reports say that management expects the large deal to add more than 1% to fiscal 2028 growth.
Oct 10, 2026: Infosys said that the US Department of Labor suspended new and pending applications by some companies, including Infosys, under the Permanent Labor Certification program. Infosys said that it does not expect a material impact and that it will work with the government agencies on their questions.
Jul 23, 2026: Infosys reported Q1 fiscal 2027 results. Revenue rose 2.4% in constant currency to $5,082 million, the operating margin was 21.1% and basic EPS was $0.20. Large deal wins were $3.6 billion, with 61% net new, and free cash flow was $955 million. AI revenue was 8.2% of the total. Infosys cut its fiscal 2027 revenue growth guidance to 1.5% to 3.0% in constant currency and kept its operating margin guidance of 20% to 22%.
Apr 23, 2026: Infosys reported fiscal 2026 results. Revenue was $20,158 million, up 3.1% in constant currency, and free cash flow was $3,733 million. Large deal wins were $14.9 billion. It guided fiscal 2027 revenue growth of 1.5% to 3.5% and an operating margin of 20% to 22%.