- Infosys AI revenue rose to 8.2% of total revenue in the June quarter from 5.5% in February
- CEO Salil Parekh noted AI revenue growth is volatile but shows consistent double-digit increases
- Over 80,000 Infosys employees use AI coding tools like Claude Code and Codex in projects
Infosys Ltd. appeared to be quite bullish on their AI bets after the first quarter result announcement, and for good reason. The company revealed that AI revenue made up of 8% of their total revenue for quarter ended June 30.
The AI contribution has increased from 5.5% in February (when the company launched its hexagon framework) of the firm's revenue to 8.2% by the quarter under review, CFO Jayesh Sanghrajka highlighted.
However, there have been sequential speedbreakers on the growth track, despite double-digit type of increase in the revenue over the last few quarters.
Underlining the volatility, CEO Salil Parekh said, "On the AI revenue... it's moving so quickly that it is a bit up and down on a quarter by quarter basis. So our thought is that's why we're saying look at over the last several quarters we see that double-digit type of growth quarter on quarter... sometimes it could be a little bit faster, but it's growing nonetheless."
Even as growth remains slightly lumpy, the CEO doubled down the optimism and said that the AI pipeline is larger than the 8% revenue that they have today, as they see good traction in it.
ALSO READ: 80,000 Employees Now Coding With AI: Infosys CEO Details Claude, Codex Use In Workflow
CEO Salil Parekh said more than 80,000 employees are already using AI coding tools such as Claude Code and Codex in client projects, underscoring the company's push to integrate AI into day-to-day engineering work.
To deepen this capability, Infosys plans to build a team of 6,000 'Frontier Engineers' over the next few years. These engineers will combine advanced engineering expertise with business context to help clients develop and deploy cutting-edge AI solutions, with the company saying it already has a roadmap in place to scale the initiative.
Separately, Parekh refuted the possibility of Microsoft and other multinational Big Tech companies proving to be a competitive threat in the AI services space.
Parekh stated that the company is "extremely well positioned",to cater to the requirements of their customers and stated that an influx of companies in the IT services space would be a "huge positive" for Infosy, alluding to the expansion of the market as well as the possibilities of future partnerships.
ALSO READ: Infosys Trims Growth Guidance; CFO Says Q1 Softness To Have 'Cascading Effect'
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