Infosys American Depositary Receipts (ADRs) plunged more than 5% in US trading on Thursday, with shares dipping as much as 5.76% to $10.30 on the New York Stock Exchange.
The sharp sell-off followed the company’s first-quarter fiscal 2027 results, which included a downward revision to the upper end of its full-year revenue growth guidance.
3% year-on-year increase in consolidated profit to ₹7,769 crore for the April-June quarter, the revenue shortfall against market expectations has reignited concerns about demand softness in key Western markets.
The ADRs closed 2.01% lower at $10.71, reflecting investor disappointment over the cautious outlook despite solid bottom-line performance.
The market reaction underscores a growing divergence between profitability and top-line momentum for India’s second-largest IT services provider.
While Infosys reported a 12.3% year-on-year increase in consolidated profit to ₹7,769 crore for the April-June quarter, the revenue shortfall against market expectations has reignited concerns about demand softness in key Western markets.
The guidance cut suggests that recent strategic acquisitions have not yet fully offset broader macroeconomic headwinds affecting enterprise IT spending.