BENGALURU :Infosys on Thursday forecast weaker-than-expected revenue growth for fiscal 2026, becoming the latest Indian IT firm to signal a tough year ahead as global economic uncertainty, tariff disruptions and cautious client spending weigh on the sector’s outlook.
India’s second-largest software services exporter said it expects revenue for fiscal 2026 to be flat to up 3 per cent, while analysts were expecting a 2 per cent–4 per cent rise.
That sent U.S.-listed shares of the company down 3 per cent in premarket trading.
Chief Executive Salil Parekh said on a conference call Infosys was starting to see some impact on consumer products due to broader macroeconomic challenges and flagged an “uncertain” environment, echoing sentiments from rivals Tata Consultancy Services and Wipro.
“The first quarter is looking soft for all IT companies… For the sector, recovery has been pushed back by 4–5 months,” said Piyush Pandey, lead IT analyst at Centrum Broking.
Infosys’ forecast adds to mounting concerns facing India’s $283 billion IT sector, which was already wrestling with subdued demand and delays in deal closures.
The company’s revenue forecast suggests a quarterly run-rate of 0.5 per cent–1.7 per cent over the next year, analysts at Jefferies said, calling it “optimistic at the higher end.”
Several other analysts said they expect Bengaluru-based Infosys to be more vulnerable to tariff-related uncertainty than its peers, given its heavier reliance on manufacturing and retail — its second and third-largest revenue drivers.
Revenue for the reported quarter rose 7.9 per cent to 409.25 billion rupees ($4.79 billion) year-on-year, missing analyst estimates of 420.73 billion rupees, according to data compiled by LSEG.
Quarterly net profit fell 11.8 per cent to 70.33 billion rupees, compared with analysts’ mean estimate of 66.95 billion rupees.
($1 = 85.3630 Indian rupees)
