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Infosys Q3 FY26 Earnings Results: Net Profit Slips Marginally, Revenue Growth Remains Strong

Written by: Aayushi ChaubeyUpdated on: 14 Jan 2026, 10:08 pm IST
Infosys reported Q3 FY26 results with a slight fall in profit, strong revenue growth, steady guidance and robust large deal wins.
Infosys Q3 FY26 Earnings Results
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Infosys reported its financial results for the third quarter of the current financial year (Q3 FY26) after market hours on Wednesday. While the IT major saw a slight decline in net profit on a year-on-year basis, revenue growth remained healthy, supported by steady demand and strong deal wins.

Net Profit Declines On Year-On-Year Basis

Infosys posted a consolidated net profit of ₹6,654 crore for the December quarter, marking a 2.23%A decline year-on-year compared with ₹6,806 crore in the same period last year. The fall in profit indicates some pressure on earnings despite stable business activity during the quarter.

The profit figure is attributable to the owners of the company and reflects the impact of operating costs and margin movements during the period.

Revenue From Operations Shows Solid Growth

Revenue from operations rose 8.89% year-on-year to ₹45,479 crore in Q3 FY26, compared with ₹41,764 crore in the corresponding quarter of the previous financial year. The strong revenue growth highlights steady demand across key client segments.

On a sequential basis, the company recorded modest revenue growth, reflecting stable performance even in what is typically a seasonally softer quarter for the IT services sector.

Focus On Enterprise AI And Large Deal Wins

During the quarter, Infosys continued to benefit from its focus on enterprise artificial intelligence solutions. Its AI-led offerings helped strengthen client relationships and supported market share gains.

The company also reported strong momentum in deal wins, securing large contracts worth $4.8 billion during the quarter. This underlines healthy demand for digital transformation and technology services, even amid global economic uncertainty.

FY26 Outlook Remains Stable

Infosys maintained its revenue growth guidance of 3–3.5% in constant currency terms for the full financial year FY26. The company also retained its operating margin guidance of 20–22%, signalling confidence in its ability to manage costs and sustain profitability.

In addition, Infosys generated adjusted free cash flow of $965 million during the quarter, reflecting strong cash generation despite seasonal factors.

Infosys Share Price Performance 

Ahead of the results announcement, Infosys shares rose 0.62% to close at ₹1,608.90. The earnings were released after market hours, and the stock performance reflects cautious optimism among investors.

Read more: Infosys Faces US$150 Million Annual Revenue Risk as Daimler Eyes New Vendor.

Conclusion

Infosys delivered a mixed set of Q3 FY26 results, with a marginal decline in net profit but strong revenue growth and robust deal wins. Stable guidance and continued focus on AI-driven solutions position the company well for the remainder of the financial year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Published on: Jan 14, 2026, 4:34 PM IST

Aayushi Chaubey

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