Infosys (INFY) Q1 26/27 (Media) earnings summary

Executive summary

• Q1 revenues reached $5,082 million, up 2.4% year-over-year in constant currency and 1.0% sequentially, with a one-time client-related revenue impact.

• Operating margin stood at 21.1%, with a 0.2% sequential increase.

• Large deal TCV was $3.6 billion, with 61% net new business.

• AI services revenue reached 8.2% of total, growing at double-digit rates quarter-on-quarter.

• CEO succession plan announced: Ashiss Dash to succeed Salil Parekh as CEO effective April 1, 2027, after a structured transition and mentorship period.

Financial highlights

• Operating profit for Q1 was $1,072 million, up from $1,028 million year-over-year; net profit was $820 million, compared to $809 million last year.

• Gross margin improved to $1,600 million from $1,525 million year-over-year.

• Basic EPS was $0.20, up from $0.20 last year; diluted EPS was $0.20, up from $0.19.

• Free cash flow for the quarter was $955 million, converting at 116.5% of net profit.

• EPS increased 15% year-on-year in INR terms.

Outlook and guidance

• FY27 revenue growth guidance revised to 1.5%-3% year-on-year in constant currency, reflecting macro uncertainty and Q1 impacts.

• Operating margin guidance maintained at 20%-22%.

• Guidance band narrowed due to cascading effects from Q1 and ongoing macro headwinds.