IT major Infosys reported a 2.2% year-on-year decline in its Q3FY26 net profit and a sharp sequential fall of 9.64%. Revenue, however, increased, supported by a pickup in technology demand from its financial services clients.

#1. Q3 profit hit by one-time Rs 1,289 crore labour code impact

Infosys said it has incurred Rs 1,289 crore one time impact of new labour code hence has added it in the exceptional item.

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“The Group has assessed the financial implications of these changes which has resulted in increase in gratuity liability arising out of past service cost and increase in leave liability by Rs 1,289 crore,” the company said. 

#2. Revenue Guidance revised upward

The company revised its revenue growth forecast for the fiscal year ending 2026 to 3%-3.5%, from an earlier estimate of 2%-3%.

The company maintained operating margin guidance at 20–22%, excluding the one-time labour codes impact.

#3. TCV- Infosys bags $4.8 billion large deals in Q3FY26

Large order bookings, or deals over $30 million, stood at $4.8 billion in Q3FY26, compared to $3.1 billion in the ⁠previous quarter(Q2FY26) and $2.5 billion in Q3FY25.

The company also won AI-led deals with companies such as software giant Adobe and German conglomerate Siemens AG in 2025.

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In Q3, Infosys also won a $ 1.6 billion deal with UK’s National Health ‌Service.

#4. Revenue rises 8.9% 

Infosys reported better-than-expected Q3 revenue at Rs 45,479 crore, marking an increase of 8.9% YoY. Revenue at its financial services segment, which accounts for nearly a third of its ​revenue, was up 3.9%. The communications segment rose the most at 9.9%.

#5. Attrition and headcount: Infosys adds 5,043 employees

Infosys’ total headcount increased by 5,043 employees sequentially to 337,034, while voluntary attrition (LTM) declined to 12.3%, compared with 14.3% in the previous quarter.

This is contrary to peers such as TCS and HCLTech, which reported a decline in employee count. TCS’ headcount fell by over 11,000 in Q3 to 582,163 employees, and the company said it will continue its restructuring efforts.