Why did INFY stock drop? — 2026-10-23

INFY — Infosys Limited American Depositary Shares

Session close: $12.35. Regular-session share volume: 41,682,816. Change from previous close: -6.58%.

Key developments

Infosys cut its annual revenue growth outlook, citing cautious client spending, slowing project volumes and pricing pressure. Reporting linked the premarket and intraday weakness in its American depositary shares to the reduced outlook. Management said AI productivity gains are also reducing revenue from traditional services as clients demand greater savings, highlighting pressure on the outsourcing model.

Infosys' AI Business Is Booming, but the Same Technology Is Eating Into Its Revenue · Infosys’ U.S. shares tumble after revenue outlook cut

AI-related revenue grew strongly, while large contract wins offered future growth visibility. Operating margins remained stable, and Infosys maintained its margin outlook as efficiency initiatives supported investment in AI, sales and talent. The board also raised its interim dividend.

Infosys' AI Business Is Booming, but the Same Technology Is Eating Into Its Revenue · Infosys:Differentiated AI strategy and a sharp focus on value unlock propels 29% sequential growth in AI revenues

Coverage spans premarket and intraday trading, not the session close. Sources disagree on whether quarterly results beat or missed expectations, but consistently report the lowered revenue outlook.

Infosys' AI Business Is Booming, but the Same Technology Is Eating Into Its Revenue · Infosys falls despite revenue beat as guidance disappoints · Infosys Reports Second Quarter Fiscal Results

News sources