Infosys (INFY) Q1 25/26 (Media) earnings summary

Executive summary

• Revenues grew 2.6% sequentially and 3.8% year-over-year in constant currency, reaching $4,941 million in Q1, with broad-based growth across major industry groups and geographies.

• Large deal TCV reached $3.8 billion, with 55% net new wins, driven by enterprise AI leadership and client consolidation initiatives.

• AI agent deployment and productivity improvements are key differentiators, with 300 agents now live across client operations.

• Operating margin stood at 20.8%; basic EPS increased 5.8% YoY to $0.20.

• Free cash flow was $884 million, representing 109.3% of net profit, and ROE improved by 140 bps to 30.4%.

Financial highlights

• Revenues grew 3.8% YoY and 2.6% QoQ in constant currency; reported revenues up 4.8% YoY.

• Inorganic growth contributed 40 basis points to the 2.6% sequential revenue increase.

• Pricing increases and seasonality supported revenue growth, while productivity gains from AI and automation were shared with clients.

• Margins declined by 20 basis points, impacted by wage hikes (100 bps), currency (30 bps), and other factors, partially offset by pricing and productivity benefits.

• Net profit for the quarter was $809 million, up from $763 million YoY.

Outlook and guidance

• FY2026 revenue growth guidance revised to 1%-3% in constant currency, up from 0%-3%.

• Margin guidance remains at 20%-22%.

• Guidance reflects improved deal wins and performance, but macroeconomic and tariff uncertainties persist.