Shares of Infosys, one of India’s leading information technology firms, climbed sharply on the stock market after the company raised its full-year 2026 revenue outlook, buoyed by strong momentum in artificial intelligence (AI) and digital services demand.
The improved forecast reflects increased client spending on AI, cloud computing and broader digital transformation projects, areas where Infosys has been expanding its service offerings and strategic capabilities. Investors reacted positively to the update, pushing the company’s share price higher in early trading on the Mumbai stock exchange.
Infosys now expects faster revenue growth in FY26 compared with earlier projections, signaling continued strength in its core IT consulting and software services segments. The company has also highlighted growing demand from North American and European clients seeking AI-enabled solutions to enhance operations and competitiveness.
Executives at the IT firm attributed the improved outlook to a combination of strengthened deal pipelines, expanded AI-related contracts and ongoing digital transformation initiatives across industries. They noted that many customers are investing more aggressively in AI tools to automate processes, improve analytics and develop next-generation digital platforms.
Analysts say that the AI boom has become a key growth driver for major Indian IT services companies like Infosys, as enterprises worldwide increase spending on modern tech capabilities to remain competitive. With Infosys now aligning its services with these trends, its performance outlook appears stronger than many expected heading into the fiscal year.
Despite economic uncertainty in some global markets, Infosys’s confidence in AI-driven and digital revenue streams has reassured investors. The company’s elevated forecast reflects resilience in demand for IT services and reinforces India’s position as a major global technology services hub.
Industry watchers will be closely monitoring how Infosys continues to leverage its AI strategy to compete with peers and capture a greater share of the rapidly growing digital transformation market in the coming quarters.
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