Infosys Projects Cautious Revenue Growth Amid Global Economic Challenges

Infosys, a global leader in consulting and IT services, has announced a modest revenue growth projection of 0-3% for the fiscal year 2025-26. This cautious forecast is attributed to ongoing macroeconomic uncertainties and concerns over tariffs, which have led to tighter discretionary spending among clients.

Despite the challenging environment, Infosys maintains its margin guidance at 20-22% for the current financial year. This projection marks one of the company's lowest in over a decade, not counting the pandemic period when guidance was suspended due to widespread economic instability.

Market Reaction and Comparative Performance

The announcement had an immediate impact on Infosys's American Depositary Receipts (ADRs), which saw a 3% drop in early trading on the NYSE. Comparatively, Infosys's revenue grew by 4.2% in 2024-25, slightly below its target range of 4.5-5%. Meanwhile, peers like TCS reported a 4.2% growth in constant currency, whereas Wipro experienced a 2.3% decline.

Leadership's Perspective on Future Strategies

"The current environment demands agility and close monitoring of economic shifts," stated Infosys CEO Salil Parekh during the earnings press conference. He emphasized the company's focus on executing deals secured in recent quarters and adapting to client demands for cost efficiency and consolidation.

With $11.6 billion in deals signed last fiscal year—a 34% decrease from the previous year—Infosys is navigating through these uncertain times with strategic planning and flexibility.