BENGALURU (Reuters) -Infosys on Thursday projected weaker-than-expected revenue growth for fiscal 2026, making it the latest Indian IT firm to flag soft global demand amid economic uncertainty and tighter client budgets.
India's second-largest firm said it expects revenue for the fiscal 2026 to be between flat and a rise of 3%, below analysts' expectations of a forecast of 2-4%.
Analysts expect Bengaluru-based Infosys to be more vulnerable to tariff-related uncertainty than its rivals, given the company's heavier reliance on retail and manufacturing—its second- and third-largest revenue drivers.
Donald Trump's tariffs have disrupted global supply chains, prompting companies to delay large tech projects, which could weigh on IT outsourcing firms like Infosys.
Rivals Tata Consultancy Services and Wipro have already cautioned that clients were delaying decision making on discretionary projects due to tariffs.
Revenue for the reported quarter rose 7.9% to 409.25 billion rupees ($4.79 billion) year-on-year for Infosys, missing analyst estimates of 420.73 billion rupees, as per data compiled by LSEG.
Quarterly net profit fell 11.8% to 70.33 billion rupees, compared with analysts' mean estimate of 66.95 billion rupees.
"The environment is uncertain, and we will execute our plans with agility keeping a close watch on changes," chief executive Salil Parekh said.
Revenue at its manufacturing and BFSI (banking, financial services and insurance) rose, whereas those at the retail and life-sciences units fell.
Large deal wins for the quarter, classified by Infosys as deals over $50 million, stood at $2.6 billion, down from $4.5 billion in the same period last year.
($1 = 85.3630 Indian rupees)
(Reporting by Haripriya Suresh; Editing by Nivedita Bhattacharjee)
