Infosys (INFY) Q1 26/27 earnings summary

Executive summary

• Ashiss Dash, a 31-year Infosys veteran, was appointed CEO Designate, succeeding Salil Parekh after March 2027, ensuring a structured leadership transition.

• Q1 FY27 revenue reached $5,082 million (₹48,211 crore), up 14.0% YoY and 3.9% sequentially, with operating margin at 21.1% and net profit at ₹7,775 crore, up 12.2% YoY.

• AI services revenue reached 8.2% of total, growing at double-digit rates sequentially, with strong demand for AI-led transformation.

• Large deal wins totaled $3.6 billion, with 61% net new, reflecting strong client engagement and strategic partnerships.

• Board changes included Nitin Paranjpe as Vice Chairman and Michael Nelson Gibbs retiring as Independent Director.

Financial highlights

• Q1 revenues: $5,082 million (₹48,211 crore), up 14.0% YoY and 3.9% sequentially in constant currency.

• Operating margin: 21.1%, up 0.3 percentage points YoY and 20 bps sequentially; gross margin improved by 60 bps.

• Free cash flow: $955 million (₹9,051 crore), 116.5% of net profit; consolidated cash and investments at $3.9 billion (₹21,645 crore).

• EPS: INR 19.19, up 15% YoY; yield on cash investments at 6.8%.

• Attrition rose slightly to 13%; headcount reduced by 500 after acquisitions.

Outlook and guidance

• FY27 revenue growth guidance revised to 1.5%-3% YoY in constant currency, including 1.7% from acquisitions.

• Operating margin guidance maintained at 20%-22%, factoring in wage hikes, AI investments, and acquisition impacts.

• Lower end of guidance assumes further macro deterioration; top end assumes some improvement.