Infosys (INFY) Q4 25/26 earnings summary

Executive summary

• FY 2026 consolidated revenue reached ₹178,650 crore ($20 billion+), up 9.6% year-over-year, with 3.1% constant currency growth; Q4 revenue up 4.1% year-over-year in constant currency.

• Large deal wins totaled $14.9 billion for FY 2026, up 24% year-over-year, with 55% net new and $3.2 billion in Q4.

• AI services and platforms like Topaz Fabric and Cobalt for cloud, along with strategic partnerships, are driving differentiated client outcomes.

• Net profit for FY 2026 was ₹29,474 crore, a 10.2% increase year-over-year, and basic EPS rose 11% to ₹71.58.

• Operating margin for FY 2026 was 21% (adjusted), with Q4 margin at 20.9%.

Financial highlights

• FY 2026 revenues surpassed $20 billion (₹178,650 crore), with 3.1% constant currency growth.

• Adjusted operating margin stable at 21% for the year; Q4 margin at 20.9%.

• Reported EPS in INR grew 23.8% YOY in Q4 and 11% for FY 2026; adjusted EPS up 13.9% in Q4 and 12.1% for the year.

• Free cash flow for FY 2026 was ₹33,097 crore (INR 33.5 billion), with FCF conversion at 112.3% of net profit.

• ROE stood at 31.6%–34.7%; consolidated cash and investments at $4.5 billion (₹43,075 crore) after returning over $4 billion (₹37,500 crore) to shareholders.

Outlook and guidance

• FY 2027 revenue growth guidance: 1.5%–3.5% year-over-year in constant currency.

• Operating margin guidance for FY 2027: 20%–22%.

• H1 expected to be stronger than H2, consistent with seasonality.

• Effective tax rate for FY 2027 expected at 29%–30%.

• Guidance includes Seterus acquisition but excludes Versent JV and Optimum Healthcare acquisitions.