Infosys Limited narrowed its FY27 constant currency revenue growth guidance to 1.5%–3% from the previous range of 1.5%–3.5%, citing uneven macroeconomic conditions and a one-time revenue impact from a client decision in Q1FY27. Simultaneously, the board appointed Ashiss Kumar Dash as Chief Executive Officer Designate, with Salil Parekh stepping down on March 31, 2027. For the quarter ended June 30, 2026, net profit rose 12.20% year-on-year to ₹7,769 crore, while revenue grew 14.00% to ₹48,211 crore. AI services now constitute 8.2% of total revenue, growing at double-digit sequential rates.

Financial Performance and Guidance

Infosys reported a Q1FY27 net profit of ₹7,769 crore, up from ₹6,921 crore in the prior year. Revenue from operations stood at ₹48,211 crore, compared to ₹42,221 crore in Q1FY26. The operating margin was 21.08%, slightly below the analyst estimate of 21.10% but improved from 20.80% in the same period last year. Free cash flow for the quarter was $955 million.

The company revised its full-year guidance downward. The previous upper limit of 3.5% growth assumed an improving macro environment, which management stated has not materialized to expected levels. Additionally, a specific client decision resulted in a one-time revenue reduction during the quarter. Despite this, Infosys secured large deals worth $3.6 billion, with 61% being net new business. CFO Jayesh Sanghrajka noted that currency depreciation provided a tailwind of 15–17 basis points per 1% change in the dollar-rupee rate, partially offset by non-US revenue exposure.

Leadership Transition

Nandan Nilekani, Chairman, announced that Salil Parekh’s tenure ends on March 31, 2027. Ashiss Dash, an internal candidate with 31 years at Infosys, will take over as CEO on April 1, 2027. Dash is currently based in Los Angeles and will return to India for CEO coaching. From October 1, 2026, Parekh will mentor Dash during the transition period. Parekh highlighted that the company’s AI strategy, including the Topaz Fabric platform, is well-established and will continue under the new leadership.

AI Strategy and Market Position

AI services revenue reached 8.2% of total revenue in Q1, up from 5.5% in Q3FY26. Over 80,000 employees are currently working on coding tools such as Claude Code and Codex. Infosys plans to build a team of 6,000 Frontier Engineers over the next few years to support client work in AI strategy, data modernization, and agent building. The company emphasized its Topaz Fabric platform, which allows clients to maintain data sovereignty while using various foundation models, addressing growing concerns over token costs and security.

Sectoral Trends and Outlook

Financial Services and Energy, Utilities, and Resources (EURS) segments are expected to grow faster than the company average. Retail and Communication sectors continue to face constraints. Manufacturing grew approximately 1.5% despite headwinds from a specific client decision. Management noted that outcome-based pricing is gaining traction but remains a small part of the portfolio. Infosys also confirmed it has decided not to enter the AI infrastructure or data center business, focusing instead on its core services model.

Infosys has completed the migration of NTN Corporation’s on-premise e-commerce platform, e-WINGS, to SAP Commerce Cloud 2211. Announced on July 28, 2026, the project leverages Infosys Cobalt to enhance platform reliability, streamline IT operations, and improve cost efficiencies for the Japanese precision equipment manufacturer. The move supports NTN Corporation’s broader digital transformation strategy by replacing legacy infrastructure with a scalable, cloud-based architecture.

Migration Details

The transition from the on-premise SAP Commerce-based system to the cloud environment was executed using Infosys’ proven methodologies and accelerators. Key outcomes include automated version control, which simplifies maintenance, and improved system stability for daily operations. The cloud adoption enables NTN Corporation to modernize legacy system management and focus on innovation with greater agility.

Strategic Impact

Kenji Kitazato, Head of ICT Strategy Department at NTN Corporation, stated that the migration streamlined IT operations and laid a strong foundation for future digital growth. Arun Hoskere, EVP and Head of Infosys Japan, noted that the collaboration reflects Infosys’s commitment to helping clients unlock operational efficiency through cloud-powered innovation. Kishi Hattori, Chief Partner Officer at SAP Japan, highlighted the transformative potential of combining SAP’s cloud features with Infosys’s expertise.

What the Numbers Show

While specific financial figures were not disclosed, the operational shift signifies a reduction in technical debt and maintenance overhead for NTN Corporation. By automating version control and moving to a managed cloud service, NTN reduces the resource intensity associated with on-premise hardware and software updates. This structural change positions the company to scale its digital commerce capabilities without proportional increases in IT infrastructure costs, aligning with global trends toward cloud-first enterprise architectures.