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Infosys signaled a measured growth outlook for fiscal 2027 after closing FY26 with modest revenue expansion, steady margins and strong deal momentum, underscoring a strategy increasingly anchored in artificial intelligence-led transformation.
The company forecast revenue growth of 1.5% to 3.5% in constant currency for FY27, with operating margins expected in the 20% to 22% range, reflecting continued macroeconomic uncertainty and cautious client spending.
The outlook follows a year in which Infosys reported revenue of $20.16 billion for FY26, up 4.6% in reported terms and 3.1% in constant currency. Operating margin stood at 20.3%, with an adjusted margin of 21.0%, while free cash flow remained strong at $3.73 billion.
Growth in the March quarter was slightly stronger, with revenue rising 6.6% year-on-year to $5.04 billion and constant currency growth at 4.1%. Quarterly operating margin came in at 20.9%, and earnings per share rose 15.7% to $0.23.
Chief Executive Salil Parekh said the company’s pipeline and positioning in large transformation programs would support growth, pointing to total contract value (TCV) of large deals at $14.9 billion during FY26, more than half of which was net new.
He said demand for enterprise AI adoption was accelerating, with clients moving from pilot projects to scaled deployments. Infosys’ “AI-first” strategy and platforms such as Topaz Fabric, along with partnerships across technology providers, are expected to play a central role in future growth.
Chief Financial Officer Jayesh Sanghrajka said the company would continue to prioritize margin discipline and cash generation even as it increases investments in AI capabilities, talent and go-to-market initiatives.
Despite the relatively muted growth outlook, Infosys maintained a strong capital return profile. The board proposed a final dividend of ₹25 per share, taking total shareholder returns for FY26 to more than ₹37,500 crore, including interim dividends and buybacks.
Analysts expect the company’s performance in FY27 to hinge on the pace of recovery in discretionary IT spending and the conversion of its large deal pipeline into revenue, particularly in sectors such as financial services, manufacturing and energy.
Infosys said it continues to see traction in high-value contracts and strategic collaborations across industries, positioning itself to capture a larger share of enterprise technology spending as AI adoption deepens.
With global clients increasingly focusing on efficiency, automation and digital resilience, the company is betting that its AI-led offerings and scale in execution will help navigate near-term headwinds while supporting gradual growth recovery.
