Highlights: Infosys raises FY26 revenue guidance to 1-3% led by $3.8 billion deal wins; MD says, ‘Q1 demonstrates enterprise AI capabilities, competitive positioning’

Infosys reported a 14.4 per cent voluntary attrition rate in the first quarter of the fiscal year. Last year, in Q1FY25, the company’s voluntary attrition rate stood at 12.7 per cent.

The company’s total employee count stood at 3,23,788 in Q1FY26, against a total employee headcount of 3,15,332 in Q1FY25. 

Basic earnings per shar (EPS) increased by 8.6 per cent YoY to Rs 16.70 crore and 5.8 per cent YoY in $ terms to $0.20 million.

Jayesh Sanghrajka, CFO, said in the regulatory filing, “Q1 performance is a clear reflection of our unwavering focus on multiple fronts resulting in strong growth at 2.6% QoQ, resilient margins at 20.8% and EPS increase of 8.6% YoY. We continue to leverage Project Maximus to make investments in strategic priorities to drive profitable growth and enhance shareholder value”, said.

“Cash flow conversion was well above 100% for the fifth consecutive quarter. The impact of currency volatility was effectively managed through our proactive hedging strategy”, he added.

Infosys secured large deal wins worth $3.8 billion in Q1, with 55 per cent of it being net new.

New collaborations were announced with AIB, E.ON, DNB Bank, Spark New Zealand, and Yorkshire Building Society.

Salil Parekh, CEO and MD of Infosys, said in the statement, “Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees.”

He added, “Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships.”

Infosys reported Q1 revenue of $4,941 million, up 3.8 per cent YoY and 2.6 per cent QoQ in constant currency (CC) terms

The company maintained an operating margin of 20.8 per cent, slightly down 0.3 per cent YoY and 0.2% QoQ. Free cash flow stood at $884 million, which is 109.3 per cent of net profit. This marks the fifth consecutive quarter where cash flow conversion was well above 100%

Revenues: Rs 42,279 crore

Net Profit: Rs 6,921 crore

EBIT: Rs 8,803 crore

EBIT margin: 20.8%

IT major Infosys on Wednesday released its first quarter earnings report with profit at Rs 6,924 crore, up 8.63 per cent in comparison to Rs 6,374 crore during the same period of previous financial year.

The company reported revenue from operations at Rs 42,279 crore, up 7.54 per cent as against Rs 39,315 crore posted during the same period of FY25.

Infosys raised the revenue growth guidance to 1-3 per cent from 0-3 percent. However, it kept the margin guidance at 20-22 per cent.

IT major Infosys on Wednesday released its first quarter earnings report with profit at Rs 6,924 crore, recording a rise of 8.63 per cent in comparison to Rs 6,374 crore during the same period of previous financial year.

The company reported revenue from operations at Rs 42,279 crore, up 7.54 per cent as against Rs 39,315 crore posted during the same period of FY25.

“We expect revenue to grow 1.8 per cent Q-o-Q in cc (organic growth to be 1.5 per cent) in a seasonally weak quarter,” Nomura noted in its report. The company’s dollar revenue is expected to come in at $4,896 million, up 3.9 per cent year-on-year.

Nomura expects the company’s EBIT margin to fall by 30 basis points sequentially to 20.7 per cent.

In the previous quarter, Infosys said that revenue growth is expected at 0–3 per cent in constant currency and operating margin of 20–22 per cent for FY26. The company’s Operating margins for Q4 stood at around 21 per cent.

In the previous quarter (Q4FY25), Infosys announced total contract value (TCV) of large deal wins at $2.6 billion.

The IT firm recommended a final dividend of Rs 22 per equity share for the financial year ended March 31, 2025. Including the interim dividend, this represents a 13.2 per cent increase over the previous year.

Infosys posted a mixed set of numbers for the fourth quarter of FY25. While the company’s revenue rose by nearly 8 per cent year-on-year to Rs 40,925 crore, its net profit dropped 11.7 per cent to Rs 7,033 crore compared to the same quarter last year.

Anand Rathi (Q1 FY26e)

Revenue: Rs 41,764.4 cr (Up 6.2 per cent YoY)
EBITDA margin: 24.0%
Adj. PAT: Rs 6,772.5 cr (Up 6.4 per cent YoY)

Axis Securities (Q1FY26E)

Revenues Rs 41,995 cr (Up 6.8%)

EBIT Rs 8,293 cr (Up 0.1%)

EBIT margin 19.7% (Down 133 bps)

PAT Rs 6,768 cr (Up 6.2%)

Equirus Securities expects Infosys to deliver a modest performance in the April-June quarter of FY26, despite seasonal tailwinds. The brokerage projects a 3.4 per cent sequential rise in US dollar revenue, with constant currency (CC) growth at 1.4 per cent. Equirus also anticipates Infosys’s EBIT margin to dip marginally by 10 basis points to 20.9 per cent. This slight decline is attributed to wage hikes for senior executives and normalised costs following write-backs in the previous quarter.

Anand Rathi expects Infosys to deliver a strong performance in the first quarter of FY26. The brokerage highlighted early signs of recovery in the IT sector, particularly in the BFSI (banking, financial services, and insurance) segment, which is emerging as a bright spot across global and Indian IT players. “Infosys, along with LTIM, Mphasis, and Intellect Design, is well positioned to outperform peers in Q1FY26,” Anand Rathi noted. “Positive earnings commentary from major US banks and steady deal wins by Infosys and Mphasis reflect the improving tech spending outlook in the sector.”

Axis Securities sees Q1FY26 revenue rising 2.6% QoQ for Infosys, aided by more working days and BFSI recovery. However, operating margins may dip by 120 bps due to wage hikes, acquisition costs (MRE Consulting, Missing Link), and higher onsite expenses. The brokerage expects Infosys to revise its FY26 revenue guidance to 1–3 per cent, reflecting improved deal momentum. Long-term growth is likely to be driven by a strong deal pipeline, cost optimisation efforts, and investments in generative AI and digital transformation.

Key things to watch out for include revenue growth, outlook for the BFSI vertical, deal momentum, and the company’s commentary on the global demand environment. Investors will also be tracking any change in the company’s FY26 guidance and monitoring margins, as pressures from senior-level wage hikes, acquisitions, and rising onsite costs could weigh on profitability. Commentary on generative AI investments and updates on large deal wins will also be closely scrutinised.

With IT majors like TCS, Wipro, and HCLTech already posting mixed Q1 results, investor attention now turns to Infosys. TCS posted a net profit of Rs 12,760 crore, up 9 per cent YoY, while HCLTech saw a 10 per cent drop in Q1FY26 profit to Rs 3,843 crore. Wipro, meanwhile, reported a 10 per cent YoY rise in net profit at Rs 3,336 crore, bucking the trend.

Infosys is set to announce its financial results for the first quarter of FY26 today. “Infosys, a global leader in next-generation digital services and consulting, will announce results for the first quarter ended June 30, 2025, on Wednesday, July 23, 2025, around 3:45 pm,” the company said in its regulatory filing.

Greetings! IT giant Infosys is set to announce its Q1 results soon. The IT sector has delivered a mixed performance so far this earnings season, with peers like TCS, HCLTech, and Wipro already declaring their numbers earlier this month. Stay tuned to this space for comprehensive coverage — from key financial metrics and dividend announcements to total contract value (TCV) updates for the quarter, and management commentary on critical issues. We’ll also bring you in-depth analysis and insights as the numbers roll in.