# Infosys says AI wins new revenue but pressures existing service prices

- URL: https://talkfuse.com/story/ai-slows-growth-for-infosys-and-keeps-it-afloat-at-the-same-time/
- Published: 2026-10-28T02:18:02+00:00
- Updated: 2026-10-28T05:02:40+00:00
- Original publisher: The Register
- Original article: https://www.theregister.com/channel/2026/10/28/ai-slows-growth-for-infosys-and-keeps-it-afloat-at-the-same-time/5305879
- Topics: AI, Technology

## Key points

- AI revenue is rising, but clients expect lower prices.
- Infosys cut its annual growth forecast to 1–2 per cent.
- New deals offer support as spending slows.

## Summary

Infosys says AI is helping it win new revenue but is also reducing the prices clients expect to pay for existing services. The tension matters because automation could bring in new work while making it harder for the company to grow revenue from long-term customer contracts.

AI revenue rose 29 per cent sequentially and accounts for 10.5 per cent of incoming cash, while overall revenue grew 1.5 per cent year on year in the second quarter. Infosys cut its full-year growth forecast from 1.5–3.0 per cent to 1.0–2.0 per cent, and aims to keep margins near 21 per cent rather than pursue deals that miss its return expectations. It won $8.8 billion in deals in the first half of its financial year, 68 per cent from new customers, but its shares are down more than 25 per cent over the past year.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.