Infosys ADRs slide as FY27 growth guidance disappoints despite profit jump
Infosys ADRs fell about 3% to $12.55 as investors focused on a cautious FY27 outlook, despite solid Q4/FY26 results. The company guided FY27 constant-currency revenue growth at 1.5%–3.5% with operating margin at 20%–22%, and the broader IT sector also weakened, pushing the India-listed shares to fresh lows.
1. What’s moving the stock today
Infosys Limited ADRs (INFY) are trading lower (down ~3% to about $12.55) as the market reacts to the company’s forward-looking FY27 outlook, which is being treated as conservative even after a headline-strong Q4/FY26 print. The key sticking point is FY27 guidance for constant-currency revenue growth of 1.5%–3.5% and operating margin of 20%–22%, which investors are interpreting as evidence of a slower demand environment and heightened competition/AI-driven productivity pressure in IT services. (prnewswire.com)
2. The results were solid, but the outlook drove the reaction
Infosys reported Q4FY26 net profit up about 20.8% year over year to ₹8,501 crore, with Q4 revenue at ₹46,402 crore, alongside FY26 revenue crossing $20 billion. However, the market response has been dominated by guidance and tone rather than the backward-looking beats, with investors discounting a slower growth setup for the fiscal year that began in April. (business-standard.com)
3. Sector tape and local-market pressure added to the downside
The move is also happening alongside weakness in Indian IT stocks, with sector-level declines and risk-off conditions weighing on sentiment and helping drive Infosys shares to new lows in India on April 24, 2026—pressure that can spill into U.S.-listed ADR pricing. In other words, this is not purely an Infosys-specific print reaction; it’s also a sector-and-macro setup amplifying the selloff. (financialexpress.com)
4. What to watch next
Near-term trading is likely to hinge on whether investors view the 1.5%–3.5% constant-currency growth guide as a floor (setting up upgrades) or as confirmation of a prolonged IT spending slowdown. Watch for follow-through commentary on large-deal conversion and whether management can defend the margin band amid pricing pressure and AI-led delivery efficiency that could compress revenue per employee while reshaping contract economics. (marketbeat.com)