Infosys: AI-led services and deal conversion in focus

Infosys: AI-led services and deal conversion in focus Infosys Limited (NSE: INFY) is positioning itself to benefit from rising enterprise spending on artificial intelligence, cloud modernisation and digital transformation. **Why it matters:** Generative AI adoption creates opportunities for IT companies to build new services and expand existing client relationships. However, clients remain cautious about discretionary spending, and AI-led productivity gains may also put pressure on traditional billing models. **My view:** Infosys needs to convert its AI capabilities and large deal wins into consistent revenue growth. The quality of deal conversion, client spending and operating margins will be more important than technology announcements alone. **What to watch:** Large deal TCV, revenue growth in constant currency, BFSI demand, AI-related revenue contribution, operating margins and employee utilisation. **Stance:** AI offers a significant long-term opportunity, but sustainable growth depends on execution, deal conversion and margin discipline. Valuation should reflect actual earnings delivery. Disclosure: I am a SEBI Registered Research Analyst. This content is for educational purposes and is not a recommendation to buy or sell any security.