Infosys (INFY) Q4 25/26 (Media) earnings summary

Executive summary

• FY26 revenue reached $20.16 billion, up 3.1% in constant currency year-over-year, crossing the $20 billion mark for the first time.

• Large deal wins totaled $14.9 billion for the year, up 28% year-over-year, with 55% net new and $3.2 billion in Q4.

• AI services revenue is growing rapidly, now contributing more than 5.5% of revenue in Q4.

• Europe and select new geographies like Japan are driving growth, while North America's share has declined.

• Free cash flow for FY26 was $3.7 billion, with a conversion rate of 112.6% of net profit.

Financial highlights

• FY26 reported IFRS operating margin was 20.3%; adjusted operating margin was 21.0%.

• FY26 basic EPS was $0.81, up 5.6% year-over-year; Q4 basic EPS was $0.23, up 15.7% year-over-year and 25.3% sequentially.

• FY26 net profit was $3.31 billion, up from $3.16 billion in FY25.

• Net headcount declined by 8,000 sequentially in Q4 but grew by 5,000 year-over-year.

• Pricing environment remained stable, with most growth this year being pricing-led due to softer volumes.

Outlook and guidance

• FY27 revenue growth guidance is 1.5%-3.5% in constant currency.

• Operating margin guidance for FY27 is 20%-22%.

• Acceleration expected in financial services and energy, utilities, and resources verticals.

• Guidance includes Stratus acquisition (25 bps impact), but not Optimum or JV with Australian client, pending regulatory approvals.

• Manufacturing, especially European auto sector, faces headwinds, with specific client wind-downs factored into guidance.