Infosys Stock Update: Shares Slip 2.29% on Revised Revenue Guidance

Infosys (NSE: INFY) is witnessing a sharp decline in early intraday trade, currently trading at ₹1,127.40, a notable drop of 2.29% from its previous close of ₹1,153.80. The IT major opened the session lower at ₹1,115.00, quickly touching an intraday low of ₹1,107.00 before paring some losses to hit a high of ₹1,145.70. The bearish sentiment is clearly evident, with trading volume surging past 8.75 million shares, indicating strong selling pressure following its second-quarter earnings announcement.

52-Week Context
While specific 52-week high and low figures are not immediately available, today's significant drop further extends the stock's year-to-date decline. Infosys shares were already down approximately 30% so far this year ahead of these results. The current downward move keeps the stock firmly in bearish territory, with investors reacting negatively to the latest corporate outlook. The stock is trading well below its previous week's close of ₹1,153.80, exacerbating its annual underperformance.

Latest Developments
The primary catalyst driving today's downturn is the IT giant's conservative guidance for the full fiscal year 2027, announced after market hours on Friday, October 23, 2026. Infosys reported a 6.2% rise in consolidated net profit to ₹7,823 crore for the second quarter ended September 30, with revenue from operations growing 10.2% to ₹49,244 crore. However, the management's decision to cut its full-year constant currency revenue growth guidance to a range of 1%-2% from the earlier 1.5%-3% has weighed heavily on investor sentiment. This revised outlook was more conservative than most analysts had anticipated, with expectations generally leaning towards trimming only the upper end of the previous guidance.

Management attributed the lowered guidance to several factors, including softer volumes, intense pricing pressure due to competitive dynamics, increased client demands for productivity gains, and a notable reduction in discretionary spending across certain sectors, particularly retail and high technology, especially within the North American market. The immediate impact was visible in its US-listed shares (ADRs), which closed nearly 7% lower on Friday night. Brokerages like Systematix and Motilal Oswal have expressed disappointment with the quarter's performance and have reportedly reduced their fair value estimates for the stock, citing ongoing pricing pressure and subdued tech spending.

Despite the bearish reaction, the company did highlight some positives: its artificial intelligence (AI) revenue was a bright spot, growing 29% sequentially and now constituting 10.5% of total quarterly revenue. Infosys also secured large deals worth $5.2 billion during the quarter, including a mega deal valued over $2 billion, and declared an interim dividend of ₹26 per share. Operating margins remained stable at 21%. However, these positive aspects have been overshadowed by the cautious revenue outlook.

Outlook
Investors will closely monitor further commentary from analysts and the management regarding the demand environment and the company's strategy to navigate the heightened market volatility. The market will also be watching for any signs of improvement in global IT spending trends, particularly in key geographies like North America, for the remainder of the session.

Disclaimer: The information provided in this article is based on news reports and is not intended as investment advice. Investing in stocks involves risk. LatestLY advises its readers to consult with a financial advisor before making any investment decisions.

(The above story first appeared on LatestLY on Oct 26, 2026 09:52 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).