Infosys has lowered its full-year revenue growth forecast, despite a rise in quarterly profit and a 29 per cent jump in AI-linked revenue, as cautious clients weigh on demand.
Infosys has reported a modest rise in quarterly profit, but the Indian information technology group has also cut its full-year revenue growth forecast as demand conditions soften in key markets, especially North America.
The Bengaluru-based company said artificial intelligence is becoming an increasingly important contributor to sales, with AI-linked revenue rising 29 per cent quarter on quarter. That growth helped offset some of the pressure from automation, which is changing how customers buy and use technology services. Even so, the company trimmed its revenue guidance for the financial year to 1 per cent to 2 per cent, down from an earlier estimate of 1.5 per cent to 3 per cent, signalling that management remains cautious about the near-term demand environment.
Infosys said large deal wins should help support performance in the months ahead, even as sector-specific weakness and broader macroeconomic uncertainty continue to weigh on client spending. The company also said it is still hiring fresh graduates, a sign that it is preparing for longer-term demand even while it navigates a slower near-term market.
The latest update suggests a familiar pattern for India’s top technology exporters: artificial intelligence is opening new revenue streams, but it is not yet enough to fully shield them from tighter budgets, slower decision-making and uneven demand in their biggest overseas markets.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
