Infosys Q4FY26 Highlights: FY27 growth seen at 1.5%-3.55%; to hire 20,000 freshers – ADR slides 4%

Shubham Rathore, Principal Analyst at Gartner, said that Infosys achieved a steady 4.1% year-over-year constant currency growth in Q4 FY26, highlighting consistent performance in a cautious global spending environment.

"A key driver for this stability is the increasing client appetite for comprehensive digital and AI-first initiatives, reflecting Gartner projections that global AI services spending will increase by 34.0% in 2026. However, IT service providers continue to face industry-wide challenges, including delayed decision-making cycles and pressure on traditional discretionary technology investments.", Rathore said.

He added that, looking toward FY27, the sector’s outlook will heavily depend on scaling AI from pilot phases to production. Firms that prioritize productivity augmentation and robust data readiness will be well-equipped to navigate market headwinds and capitalize on the expanding demand for complex transformation projects, Rathod said.

In the full FY26, Infosys' net profit climbed 10.20% to Rs 29,440 crore from Rs 26,713 crore in FY25.

Its revenue from operations in FY26 rose 9.6% to Rs 1,78,650 crore.

"We delivered a resilient performance in FY26 with growth of 3.1%, with strong large deal wins of USD 14.9 billion, reflecting the robustness of our enterprise AI value proposition and market share gains in large transformation opportunities,” Parekh said.

Revenue from the financial ​services segment, ​its largest, grew 5% in Q4FY26. "We expect acceleration of growth in financial services, and in energy, utilities, resources and ‌services verticals," chief executive Salil Parekh said in a post-earnings call.

Infosys had earlier flagged "good outlook" in the banking and energy segments for the fiscal year that started in April due to artificial intelligence-led demand.

Another key highlight from the board meeting was the approval of stock-based incentives for the company CEO and MD Salil Parekh. The company approved multiple grants under its stock incentive plans, with the total value running into tens of crores. These include performance-based restricted stock units (RSUs) and other equity-linked incentives.

According to the company filing, “The grant of annual performance-based stock incentives…covering Company’s equity shares having a market value of Rs 34.75 crore” has been approved under the 2015 plan.

On a sequential basis, Infosys posted 27.76% QoQ increase in its consolidated net profit from Rs 6,654 crore reported in Q3FY26 to Rs 8,501 crore this quarter.

The company’s revenue also increased 2.03% on a quarterly basis from Rs 45,79 crore reported in Q3FY26 to Rs 46,402 crore in Q4 FY26

Infosys' total headcount declined by 2.5 percent sequentially. The company’s total employee count decreased to 3,28,594 in Q4 FY26, from 3,37,034 in Q3 FY26.

On a yearly basis, the company’s total headcount increased 1.55 percent as the company employed 3,23,578 people at the end of Q4 FY26.

The company’s voluntary attrition rate in the IT services vertice stood at 12.6 percent in Q4 FY26, compared to 14.1 percent in Q4 FY25.

Large deal total contract value (TCV) of Infosys stood at $3.2 billion in Q4. For the full financial year FY26, deal TCV came at $14.9 billion.

The ADR of Infosys declined by 4.38%, falling to $12.89.

Hired more than 20,000 freshers in FY26. Plan to hire as many in FY27

Infosys has declared a final dividend of Rs 25 per equity share for FY26.

In the exchange filing, the company said that the board of directors has “Recommended a final dividend of ₹25/- per equity share for the financial year ended March 31, 2026. The record date for the purpose of payment of final dividend is June 10, 2026 and the dividend will be paid on June 25, 2026.”

Infosys board has recommended a final dividend of Rs 25/- per equity share for the financial year ended March 31, 2026. The record date for the purpose of payment of final dividend is June 10 and the dividend will be paid on June 25.

Infosys’ revenue from operations grew by 13.3 percent year over year during the quarter. The company reported a consolidated revenue of Rs 46,402 crore in Q4 FY26. Its consolidated revenue in Q4 FY25 was at Rs 40,925 crore.

Infosys has posted 20.8 percent YoY profit growth in the fourth quarter of FY26. The tech major’s consolidated profit in Q4 FY26 stood at Rs 8,501 crore. Last year, the company’s consolidated profit was Rs 7,033 crore in Q4.

Equirus Securities expects Infosys to report a 0.6% quarter-on-quarter(QoQ) decline in US dollar revenue and about a 1% dip in constant currency terms, in line with its guidance range of +0.3% growth to a 1.6% decline.

Axis Securities Equity Research expects Infosys’ revenue to grow by 3.2%, led by deal ramp-ups and cross-currency tailwinds. “EBIT margins are likely to improve by 22 basis points sequentially, driven by the cost optimisation programme, Project Maximus,” it said.

Kotak Institutional Equities highlighted 5 key things investors should focus on

(1) impact of Iran war and GenAI deflation on growth prospects

(2) change in decision making pace of clients due to rapid improvement in agentic capabilities

(3) willingness to take up large transformation programs that are margin dilutive initially

(4) percentage of programs that have moved from PoC to production

(5) incremental benefits that can accrue from Project Maximus.

Kotak Institutional Equities believes Infosys may guide for 3–5% revenue growth including the Versent acquisition, and 2.25–4.25% growth on an organic basis. "Hurdle rate to achieve the revenue growth guidance stands at compound quarterly growth rate (CQGR) of 1.2-1.9% (0.8-1.6% CQGR on organic basis).

Kotak Institutional Equities expects Infosys to report a 1% quarter-on-quarter decline in revenue, mainly due to fewer billing days and seasonal weakness.

"We expect stable margins, as the benefits of rupee depreciation are offset by higher visa costs. A sharp decline in other income after the completion of the buyback will result in moderate net profit growth," Kotak Institutional Equities said.

The brokerage expects Infosys’ large deal TCV in the range of US$2.5–2.75 billion, broadly stable on a year-on-year basis.

The share price of Infosys closed in the red on Thursday ahead of its Q4FY26 results. The stock declined 2.04% from the previous day’s close during the intraday session.

BNP Paribas expects Infosys to report about 0.3% quarter-on-quarter (QoQ) revenue growth in constant currency (around 0.6% in US dollar terms) in Q4FY26.

The analyst expect Infosys to post EBIT margin in the band of 20-22%. "We expect EBIT margin to expand by a modest c20bp q-q as favourable cross-currency benefits should be partly offset by visa costs and other investments," BNP Paribas said.

BNP Paribas expects Infosys to guide for 2–5% constant currency growth. It added that its estimates do not factor in any material impact from the Middle East conflict and could be at risk.

1. FY27 guidance

2. Deal TCV

3. Any announcement on managment change

4. Impact of depreciating Rupee

5. AI and Middle East impact

Read more: Infosys Q4 FY26 preview: What are investors expecting after sharp selloff in IT stocks today

Anand Rathi Research maintains a 'Buy' for Infosys and other large-cap IT stocks adding that , companies like as Infosys, TCS & HCLT are engaging in targeted M&A to shift from broad capability building to execution-led, vertically-integrated enterprise AI orchestration.

"Leaders like TCS, Infosys, & HCL Tech are poised to be the primary monetization layer for AI through partnerships with firms like OpenAI & Anthropic," the brokerage said in its report.

On April 22, Infosys announced its collaboration with OpenAI aiming to accelerate AI adoption across the enterprise.

"Through this collaboration, Infosys will combine OpenAI’s technology with Infosys Topaz Fabric, its purpose-built, composable and open agentic services suite, to help customers move from AI experimentation to practical, responsible deployment and measurable business outcomes," the IT major said in its regulatory filing.

In intra-day the company's stock was down by more than 1% at Rs 1,251. Over the past five trading sessions the stock has declined by over 5%, while over the past one month it has traded flat.

Over the past six months, the share price has fallen by over 18%, and so far in 2026 the stock is down by more than 23%.

Kotak Institutional Equities too expects the company’s net profit for Q4FY26 to decline by over 2% on a quarterly basis to Rs 7,459 crore, marked by the completion of the buyback. It forecasts the IT firm’s profit to rise 13% on a YoY basis.

As per Kotak, the company’s revenue is expected at Rs 46,844 crore, marking an on-year rise of more than 14%, while the brokerage expects the IT firm’s topline to grow by 3% on a quarterly basis aided by benefits of rupee depreciation. “We expect stable revenues from sale of third-party item,” Kotak said.

For FY26, the company has recommended a final dividend, subject to the approval of shareholders. In November 2025, the firm paid out an interim dividend of Rs 23 per equity share, while for FY25, it paid a final dividend of Rs 22.

Over the past few years, Infosys has been following a pattern of paying out one interim dividend along with a final dividend.

According to Kotak Institional Equities, the IT major’s EBIT for Q4FY26 Infosys is projected at Rs 9,984 crore, signalling a YoY rise of over 16% and a QoQ growth of more than 3%.

Nuvama estimates the company’s EBIT slightly lower at Rs 9,926 crore, forecasting an on-year rise of nearly 16% and a growth of around 3% on a quarterly basis.

Brokerage house, Nuvama Institional Equities pegs Infosys Q4 revenue at nearly Rs 46,300 crore, reflecting a QoQ growth of approximately 2%, while the revenue is expected to grow by 13% on a YoY basis. “We forecast revenue to decline -0.8% QoQ in CC and -0.5% QoQ in USD terms, impacted by seasonal furloughs, with BFSI remaining stable,” the brokerage said.

According to brokerage house Nuvama Institutional Equities, Infosys is expected to report a year-on-year rise of over 7% in its March quarter profit at Rs 7,541 crore. However, it added on a sequential basis the company's bottom line is expected to decline by 5%