Infosys share price falls 2.5% after guidance cut, new CEO announcement during Q1 results: buy, sell or hold?

Infosys Q1 Results: Shares of Infosys, India's second-largest IT services company by market capitalisation, declined 2.5% to its day's low of ₹1,023.30 per share on BSE, after the company reduced its guidance for FY27 and announced a new CEO in the June-quarter earnings.

On Thursday, the IT major reported a 12.3% year-on-year (YoY) increase in consolidated net profit to ₹7,769 crore for the April-June quarter of FY27, compared with ₹6,921 crore in the corresponding quarter last year.

On a sequential basis, however, net profit declined 8.6% from ₹8,501 crore reported in the March quarter (Q4FY26).

The IT major posted revenue from operations of ₹48,211 crore during the June quarter, registering a 14% YoY and 3.9% quarter-on-quarter (QoQ) growth. Revenue stood at ₹42,279 crore in Q1FY26 and ₹46,402 crore in Q4FY26. In constant currency (CC) terms, revenue increased 2.4% YoY and 1% QoQ.

Infosys also revised its FY27 revenue outlook, narrowing its constant currency revenue growth guidance to 1.5%-3%, compared with the earlier 1.5%-3.5% range announced while reporting its Q4FY26 results. However, the company retained its operating margin guidance of 20%-22% for the current financial year.

Alongside its quarterly earnings, Infosys announced the appointment of Ashiss Kumar Dash as the company's CEO-designate. Dash will assume the role of Chief Executive Officer and Managing Director from April 1, 2027, for a five-year term.

Commenting on the appointment, Nandan Nilekani, Chairman of the Board, Infosys, said, "The board is delighted to appoint Dash as CEO designate. Our industry is entering a period of considerable change. The board was clear that our next CEO needed to combine the ability to drive bold transformation with the judgment to preserve the values and customer trust that have always distinguished Infosys. It gives me great pleasure that we have an internal leader as our next CEO."

Meanwhile, Infosys' large deal total contract value (TCV) for the June quarter stood at $3.6 billion, up from $3.2 billion in the preceding quarter.

Brokerage house Motilal Oawal has a buy call with a target price of ₹1,170, indicating an upside potential of 12%.

"We trim our FY27E/FY28E EPS estimates by ~2% to factor in lower FY27 organic growth guidance and continued pricing pressure from AI-led productivity deflation. While AI revenue continues to scale up rapidly, we believe productivity pass-through on the existing book of business will remain a near-term headwind. Execution on deal conversion and pricing remains a key monitorable," it said post the earnings.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market ve...