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Infosys Ltd. increased the minimum projection for annual revenue, relying on a resurgence in technology spending, including artificial intelligence.
The second-largest IT outsourcing company in India anticipates revenue growth ranging from 2% to 3% when adjusted for constant currency during the fiscal year ending in March 2026. In July, it had forecasted sales increases between 1% and 3%.
We've observed strong progress, which is why we've actually raised our guidance," said Chief Executive Officer Salil Parekh at a press conference in Bangalore, the company's headquarters. "We have significantly more confidence now, with the lower end of the forecast for the year being upgraded.
Infosys and its bigger competitor, Tata Consultancy Services Ltd., are at the forefront of India's $280 billion-plus IT services sector, which is facing slow client spending caused by uncertainties from President Donald Trump's tariffs along with conflicts in Europe and the Middle East. Last week, TCS announced adisappointing 1.4% increase in earnings.
Trump’s changesThe H-1B visa program—commonly utilized by Infosys and other competitors to bring engineers and developers into the United States—may also lead to temporary business interruptions. Although Indian IT firms have employed fewer H-1B visas since the onset of the Covid-19 pandemic, this visa system continues to play a key role in maintaining client relationships and handling critical IT projects.
The U.S. workforce — the number of individuals who need Infosys to sponsor their immigration is small," said Parekh. "The majority of people do not require it.
Infosys' centers in the United States, its training facility in the country, and partnerships with local universities will enable the company to collaborate with clients "without any interruption in their services," he mentioned.
TCS stated last week during its earnings report that it will keep increasing local recruitment across all its major markets, including in the United States.
Read: Trump's $100,000 Visa Focuses on a $280 Billion India Achievement
Infosys' net profit increased by 13% to 73.6 billion rupees ($838 million) for the quarter ending in September. On average, analysts had predicted 72.24 billion rupees. Revenue also went up by 8.5%.
What Healthy urvivaltelligence Says
A 50-basis-point rise in Infosys' annual constant currency sales growth forecast at the midpoint indicates better performance despite a more unpredictable economic environment. Positive results from the financial services and manufacturing sectors provide confidence that the company's sales growth may stay steady during fiscal second half, although we don't anticipate a recovery this year, particularly since North America continues to lag behind overall growth.
- Anurag Rana and Andrew Girard, analysts
Click this link to access the study.
India's IT service firms initially became well-known for offering cost-effective back-office solutions to global companies, but have now expanded to provide various cloud, automation, and AI services to major corporations like Apple Inc. and PepsiCo Inc.
The worldwide use of AI by companies presents a chance for Infosys and similar firms to secure more profitable contracts, yet it also brings a challenge—AI can complete certain coding tasks more quickly.
(Updated to include CEO comment in third paragraph and BI response)
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