Infosys, the second-largest exporter of IT services in India, reported a 12.2% rise in net profit compared to the previous year for the first quarter of fiscal year 27. Furthermore, the company announced that Ashish Kumar Dash will take over as CEO from Salil Parekh in April of next year.
First Quarter Financial Results
In the first quarter of fiscal year 27, Infosys recorded a net profit of 7,769 crore rupees, exceeding 6,921 crore rupees in the same period last year. Quarterly revenue grew by 14% year-on-year, reaching 48,211 crore rupees.
Revenue Growth Forecast Adjustment
Despite strong quarterly results, the company slightly lowered its revenue growth forecast for fiscal year 27 to the range of 1.5–3%, down from the initial forecast of 1.5–3.5%. Infosys CEO Salil Parekh attributed this adjustment to ongoing uncertainty in the macroeconomic environment. Additional difficulties arose due to a specific client and business activity volume.
AI Prospects and Growth
Nevertheless, Infosys remains confident in its future, highlighting large contracts worth $3.6 billion, 61% of which are new. The company also noted the active growth of its artificial intelligence (AI) services. Salil Parekh stated that 'the AI momentum is now rapidly converting into revenue, demonstrating how Infosys' differentiated value proposition in enterprise AI is translating into stable market share growth. Major deal wins, underpinned by Infosys Topaz, strengthen client confidence in our ability to be the strategic partner of choice for AI transformation that delivers tangible business value.'
Revenue Structure and Workforce
The company reported that AI services now account for 8% of total revenue, up from 5.5% in the third quarter of fiscal year 26. Parekh noted that AI services are showing double-digit growth, and the portfolio of such deals remains strong, although he added that fluctuations may be observed in AI revenue growth. For the quarter, Infosys demonstrated healthy growth across all verticals and regions. Moreover, the financial services segment, being the largest source of income, is growing faster than the overall company growth.
Staffing Status and Compensation
As of the end of the first quarter, Infosys had a total workforce of 328,062 employees, which is 532 fewer than in the fourth quarter of fiscal year 26. However, year-on-year, the staff increased by 4,274 people. The company announced salary increases scheduled for October and January.
Information on the New Leader
The incoming CEO, Ashish Kumar Dash, is an Infosys veteran with over 30 years of experience and is currently based in Los Angeles. He holds the position of Executive Vice President and Global Head of Utilities, Energy, and Corporate Sustainability Services. Salil Parekh was appointed CEO in January 2018 and is credited with doubling the company's revenue from $10 billion to $20 billion.
