India's Infosys sees slowing revenue growth over global uncertainty

Core Viewpoint - Infosys forecasts muted annual revenue growth due to increasing global uncertainty, suggesting clients may reduce tech spending [1][2] Revenue Forecast - Infosys expects revenue to remain flat or grow by up to 3% for the fiscal year ending March 2026 on a constant currency basis, which is below analyst estimates of 2-4% [2] - This forecast is lower than the previous year's constant-currency revenue growth of 4.2% [2] Market Context - The company earns over 80% of its revenue from Western markets, making it vulnerable to global economic conditions [2] - Infosys anticipated a demand revival in 2025 after a growth slowdown in 2024, but ongoing client spending weakness and trade tensions have clouded the outlook [3] Executive Insights - CEO Salil Parekh described the current environment as "uncertain" and emphasized the need for agility in execution [4] - CFO Jayesh Sanghrajka noted that the lower end of the sales forecast reflects increasing uncertainty, complicating the assessment of external factors like trade policies [4] Financial Performance - Infosys reported an 11.75% year-on-year drop in net profit for the March quarter, totaling 70.3 billion rupees ($823.5 million), which was below analyst projections [5] - Revenue for the three months ending March 31 increased by 7.9% to 409.25 billion rupees [6]