Infosys cut growth outlook despite $4.2 billion in deals.

Infosys Limited (INFY) lowered its FY27 revenue growth guidance to 1–2%, down from 1.5–3% earlier. This came despite $5.2 billion in large deal wins during Q2 FY27, with 62% classified as net new business. That contradiction is what interests me. Revenue for the quarter reached ₹49,244 crore, up 10.7% year-on-year in reported rupee terms. But in constant currency, which strips out the impact of exchange-rate movements, growth was only 1.5% year-on-year. The company is winning business. The challenge is converting those wins into faster revenue growth. There is another important number. AI services revenue grew 29% sequentially and accounted for 10.5% of total revenue. That is encouraging, but it does not mean AI is automatically solving Infosys's growth problem. Clients are demanding productivity improvements, and AI can help IT companies win new work while also putting pressure on traditional billing models and pricing. Operating margin remained at 21%, within management's existing 20–22% guidance. So the immediate concern is not a collapse in profitability. It is the limited pace of revenue growth. My view: the $5.2 billion deal pipeline is a positive, but deal value is not recognised as revenue immediately. Timing, project execution and pricing will determine how much of that business reaches the income statement. The next trigger is Q3 FY27. I would watch constant currency revenue growth, conversion of large deals into revenue and whether AI growth starts lifting overall growth rather than simply changing the revenue mix. My stance: Infosys has meaningful opportunities, but I want to see stronger revenue conversion before treating its deal wins as evidence of a recovery.