Investing.com -- Infosys drew fresh analyst downgrades from JPMorgan and HSBC after its first-quarter earnings missed expectations, management cut its fiscal 2027 revenue growth guidance for a second consecutive quarter, and announced a CEO transition, reinforcing concerns over slowing business momentum.

JPMorgan downgraded the IT services company to Neutral from Overweight, lowering its price target to ₹1,050 from ₹1,200, while HSBC cut its rating to Hold from Buy and reduced its target price to ₹1,110 from ₹1,340. Both brokerages said the company's near-term growth outlook has deteriorated despite relatively inexpensive valuations.

The brokerages cited weaker demand, AI-driven pricing deflation, contract-related headwinds including a termination in the Energy, Utilities, Resources and Services segment and reduced work from a manufacturing client, alongside slower revenue conversion from strong deal wins. JPMorgan said these factors have hit Infosys' growth momentum even as large-deal signings remained healthy.

Infosys lowered its FY2027 constant-currency revenue growth guidance to 1.5%-3.0% from 1.5%-3.5%, while its organic growth outlook was reduced to -0.2% to 1.3%. JPMorgan described the cut as sharper than expected and now forecasts the company to lag key peers on growth this year. HSBC also warned that the revised guidance may still not be conservative enough, citing management's comments about weakness spilling into the second quarter.

Both firms noted that first-quarter revenue growth missed expectations, although operating margins remained resilient and the company maintained its FY2027 EBIT margin guidance of 20%-22%. Infosys also reported $3.6 billion in large-deal total contract value during the quarter, highlighting continued demand despite slower revenue realization.

Separately, Infosys announced that Ashiss Kumar Dash, currently head of the Energy, Utilities, Resources and Services business, will succeed Salil Parekh as chief executive from April 2027. Both JPMorgan and HSBC viewed the appointment of an internal candidate as supportive of a smoother leadership transition, though JPMorgan cautioned that broader management churn could persist in the near term.