India, July 23 -- Infosys began its first-quarter briefing with an announcement about who would lead the company next. But the numbers that followed revealed an equally disruptive transition already under way inside its business.

Artificial intelligence now contributes 8.2% of Infosys' revenue and has grown at a double-digit sequential rate over several quarters, according to management. At the same time, AI is increasing the productivity expected by clients, compressing parts of the traditional services portfolio and changing the economics of contract renewals.

That dual impact defined Infosys' Q1 FY27. The company delivered sequential revenue growth, preserved an operating margin above 21%, generated strong cash flow and signed $3.6 b...