Infosys Sales Forecast Trails Estimates as IT Demand Sputters
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pccv9t4loxnvbk}qjl3t05k]_media_dl_1.png BloombergArticle content(Bloomberg) — Infosys Ltd. forecast sales growth for this year below analysts’ estimates, as global enterprises curtail spending on large information technology projects to prepare for geopolitical and economic challenges.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentRevenue will grow 1.5% to 3.5% in the fiscal year through March 2027 on a constant currency basis, India’s second-largest outsourcer said Thursday in a statement. Analysts are forecasting 4.9%.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentIndia’s $315 billion tech industry, led by Infosys and rival Tata Consultancy Services Ltd., is trying to retain growth in the face of geopolitical tumult and elevated inflation due to energy disruptions tied to the Iran war. Artificial intelligence competitors are a further challenge, promising to perform many of the tasks now handled by professionals such as software developers.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentYet, Infosys has also sought to capitalize on the rapid progress of AI. The company has embedded the technology into its offerings in a bid to curb costs and convince corporations to maintain or enhance their IT budgets.Article contentLarger rival TCS is already reshaping its business model to capitalize on AI. It’s partnered with OpenAI to build AI data centers in India, and now its nearing more such deals with other tech giants.Article contentInfosys said its net income rose 21% to 85 billion rupees ($903 million) for the fourth quarter through March 2026. Analysts estimated 75 billion rupees on average. Revenue climbed 13% to 464 billion rupees, helped by a decline in the Indian rupee versus the dollar and euro. Infosys also forecast an operating margin of 20% to 22% for this year.Article contentWhat Bloomberg Intelligence SaysArticle contentInfosys’ position as the second-largest pure-play offshore IT services provider should enable it to navigate a challenging macroeconomic environment, as it remains well placed to benefit from vendor consolidation and a shift of more non-core work to low-cost locations. A shortage of skilled talent in developed markets and rupee weakness also should drive steady offshore IT-services growth.Article content– Anurag Rana, analystArticle contentClick here for researchArticle contentTrending An old factory in Welland, Ont., sat derelict for years — until someone discovered it could be worth billions Mining Posthaste: Uh oh! Another economic domino falls in Canada on the war in Iran News U.S. trade czar threatens Canada over boycott that’s hurting booze makers Retail & Marketing Why retirees are often shocked by tax bills and how to reduce them Personal Finance Should Caroline, 62, defer CPP and OAS until age 70, or even delay retirement entirely?
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