Infosys cuts FY27 growth guidance despite $5.2B deals

Infosys Limited (NSE: INFY) cut its FY27 revenue-growth guidance to 1% to 2% in constant currency, from the earlier 1.5% to 3% range. Q2 FY27 large-deal total contract value reached $5.2 billion, with 62% coming from net-new deals. What happened? Infosys reported Q2 FY27 revenue of ₹49,244 crore, up 10.7% year-on-year. Net profit increased 6.2% to ₹7,823 crore, while operating margin remained stable at 21%. The company also reported 29% sequential growth in AI revenue. Despite strong deal wins and AI momentum, management lowered its full-year revenue-growth outlook. Its operating-margin guidance remains unchanged at 20% to 22%. My analysis The key takeaway is the disconnect between deal momentum and near-term revenue visibility. Large deal wins indicate that clients continue to award transformation projects to Infosys. However, deal value does not translate immediately into recognised revenue. Implementation timelines, client spending priorities and project ramp-ups determine how quickly these contracts contribute to earnings. AI revenue growth is encouraging, but the more important question is whether AI-led work creates incremental revenue or replaces traditional services revenue at lower prices.