Big-ticket deals help Infy raise guidance for FY26

Infosys posted a sound set of first quarter numbers as it recorded strong sequential growth in revenues with robust deal pipeline.The Bengaluru-headquartered company increased the lower end of its revenue growth guidance for FY26 to 1-3 per cent from 0-3 per cent earlier.

In the April-June quarter, Infosys reported an 8.7 per cent increase in its consolidated net profit to Rs6,921 crore. Its revenue stood at Rs42,279 crore, a rise of 7.5 per cent over the same period of last year. In dollar term, revenue was at $4.94 billion, an increase of 2.6 per cent sequentially in constant currency term.

“Our growth in Q1 was broad-based. Our large deal wins stood at $3.8 billion. A large driving factor is our success in enterprise AI (implementation). The economy worldwide has come to a stable situation, but it is not fully settled. As we get closer, we narrowed our guidance keeping in mind the changes seen in the US and Europe,” Salil Parekh, CEO of Infosys, said in the post results press conference.

“We have benefited from deployment of AI agents and from consolidation (deals) that clients have looked at us and being positive,” he added. For the quarter, operating margin of Infosys was at 20.8 per cent, a dip of 20 basis points from previous quarter. The company maintained its operating margin guidance of 20-22 per cent for the whole financial year.

“We continue to leverage Project Maximus to make investments in strategic priorities to drive profitable growth,” JayeshSanghrajka, Chief Financial Officer of Infosys, said.

During the June quarter, financial services vertical grew 5.6 per cent YoY basis, while manufacturing vertical rose 12.2 per cent. Energy vertical saw a growth of 6.4 per cent, while retail grew marginally at 0.4 per cent.