TCS and Infosys: AI tops 10% of revenue, yet pricing bites (opens the source in a new tab)
- TCS and Infosys both say AI brought in more than 10% of revenue in Q2 FY27, and most of India's top five IT firms widened operating margins.
- Clients want the savings passed on. Infosys cut its FY27 growth guidance to 1-2% in constant currency, from 1.5-3%, and says it will favour profitable deals over growth.
- CEO Salil Parekh sees a big cyber opening as AI models uncover flaws, and says Infosys is already sharing defences with clients, though budgets may not rise much.
- 10.5%
- Infosys AI share of Q2 revenue
- $3.1B
- TCS annualised AI revenue
- 1-2%
- Infosys FY27 growth guide
Why it matters There is no standard way to count AI revenue, so firms are hard to compare. The test is how much of the productivity gain they keep as clients negotiate.
Other side Less effort need not mean less profit, as HFS Research's Phil Fersht argues, if firms price on outcomes. And clients may fund cyber work by trimming elsewhere.