Sumeet Jain's questions to Infosys (INFY) leadership • Q2 2026
Question
Sumeet Jain from CLSA inquired about the overall impact of AI on the IT services industry's revenue growth profile, specifically whether its deflationary effects outweigh volume growth opportunities and the balance between compression and scope expansion in AI-driven deals. He also asked if client IT service budgets are expanding due to AI and if an improved macro environment next year (without tariff uncertainty) would lead to higher industry growth, independent of AI.
Answer
CEO Salil Parekh identified AI's dual impact: growth opportunities (sales, marketing) and productivity/efficiency (cost reduction), with current focus on cost reduction due to the economic environment. He noted it's difficult to ascertain if IT budgets are expanding solely due to AI, as clients are currently focused on cost control. Mr. Parekh stated that historically, an improved macro environment leads to tech improvement, but he did not provide a specific outlook for next year's growth.