Why is Infosys stock falling today?

Infosys stock slipped 1.5% to ₹1,135.70 on Monday after the IT major’s Q2 FY27 earnings struck a mixed note.

Infosys cut its full-year constant currency revenue growth forecast to 1%–2% from the earlier guidance of 1.5%–3%. The company cut its fiscal 2027 revenue growth forecast to 1%–2% from 1.5%–3%, while most analysts had expected it to trim only the upper end of the range to 2.5%.

CFO Jayesh Sanghrajka attributed the weaker forecast to slower project volumes, pricing pressure, and increasing customer demands for productivity gains, with spending in retail and high-tech remaining weak, while financial services, energy and utilities, and manufacturing were more resilient.

On the analyst front, UBS lowered its price target on Infosys to INR 1,415 from INR 1,430 while maintaining a Buy rating, noting that Q2 revenue growth of 1.2% QoQ in constant currency came in below both its own estimate and consensus, and that the EBIT margin of 21.0% missed expectations by approximately 30 basis points.

Indian equity benchmarks drifted higher on Monday, with the Nifty 50 rising 0.4%.