Infosys Q1 Results LIVE: Infosys, India’s second-largest IT services company, is set to announce its Q1 FY27 results on Thursday, July 23, after market hours. Investors will closely track the Bengaluru-based IT major’s earnings for signs of demand recovery in key markets and any changes to its revenue outlook for the current financial year.
Ahead of the announcement, Infosys shares slipped around 2% on the NSE during Thursday’s trading session as market participants remained cautious.
Infosys Q1 Preview
Brokerage firm Motilal Oswal expects Infosys to report 2.0% quarter-on-quarter constant currency (CC) revenue growth, including 1.0% organic growth. The brokerage expects the improvement to be supported by a two-month contribution from the Optimum and Stratus acquisitions. It also noted that the company’s growth trajectory is likely to remain skewed towards the first half of the financial year, in line with the trend seen in previous years.
On the demand front, Motilal Oswal believes the US banking, financial services and insurance (BFSI) segment will continue to remain resilient. However, it expects the telecom and manufacturing verticals to stay under pressure due to client-specific issues, including the ongoing Daimler ramp-down.
The brokerage also expects Infosys to trim the upper end of its FY27 constant currency revenue growth guidance by 50 basis points, revising the range to 1.5%-3.0% year-on-year. Meanwhile, operating margin is projected to improve 40 basis points sequentially to 21.4%, driven by the absence of wage hikes in the first quarter, reversal of visa-related expenses incurred in the March quarter, and continued cost savings under the company’s Project Maximus initiative.
Apart from the headline numbers, investors will closely monitor the management’s commentary on the deal pipeline, the outlook for acquisitions, client spending trends, and any revision to the company’s FY27 revenue guidance, as these are expected to provide a clearer picture of demand conditions and growth prospects for the remainder of the financial year.
Track highlights from Infosys Q1 results here
