Infosys Q1FY26 Results: Steady Performance with Strong Deal Wins

On July 24, 2025, Infosys share price is in focus as the leader in digital services and consulting released its results for the quarter ended June 30, 2025 (Q1FY26). Infosys reported revenue of $4.94 billion for Q1 FY26, reflecting a year-on-year (YoY) growth of 3.8% and a sequential (QoQ) increase of 2.6% in constant currency (CC) terms. Revenue in rupee terms rose 7.5% YoY and 3.3% QoQ to ₹42,279 crore.

Net profit for the quarter stood at ₹6,921 crore, marking an 8.7% YoY increase, though down 1.6% QoQ. Operating profit grew 6.2% YoY and 2.7% QoQ to ₹8,803 crore, with the operating margin at 20.8%, down marginally by 0.3 percentage points YoY and 0.2 QoQ. Free cash flow remained robust at $884 million, representing 109.3% of net profit.

Infosys Segment Highlights

• Manufacturing led sectoral performance with a 12.2% YoY rise in CC terms.
• Energy, Utilities, Resources & Services followed with 6.4% growth.
• Financial Services reported a 5.6% increase YoY.

Deal Momentum Remains Strong

Infosys secured large deal wins worth $3.8 billion in total contract value (TCV), with 55% attributed to net new deals. Key collaborations this quarter include:

1. Extension of its partnership with Select Portfolio Servicing, Inc.
2. Strategic collaboration with AIB to enhance digital transformation.
3. AI-powered workplace transformation initiative with E.ON across Europe.
4. Expansion of digital transformation efforts with DNB Bank ASA.
5. New partnership with the Yorkshire Building Society in the UK.

Infosys Outlook and Guidance

Infosys revised its FY26 revenue growth guidance upward to 1–3% in constant currency, compared to its earlier forecast of 0–3%. The company maintained its operating margin guidance of 20–22%.

Also Read: Dixon Share Price Rises; Posted Q1 FY26 Results with Revenue Up 95% YoY, PAT Jumps 100%

Commenting on the Q1FY26 performance, Salil Parekh, CEO and MD said, "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. Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships.”

He further added “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 Jayesh Sanghrajka, CFO. “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.”

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