Infosys Q1 FY26: Strong Start with $4.94 B Revenue and $3.8 B Large Deal Wins

Infosys reported a strong start to fiscal year 2026, with Q1 (April–June 2025) revenues reaching $4.94 billion, marking a 3.8% year-over-year growth and 2.6% growth in constant currency terms compared to the previous quarter. This performance was attributed to steady demand across key verticals, especially financial services and manufacturing. The company’s operating margin stood at 20.8%, showing stable cost control despite global economic uncertainties. Additionally, the net profit for the quarter was $813 million, supported by robust operating efficiency and continued focus on high-margin digital services.

A major highlight of the quarter was Infosys’s success in securing large deal wins worth $3.8 billion in total contract value (TCV), 55% of which were from net new clients. This reflects the company’s growing ability to attract new business through differentiated offerings in areas such as cloud, enterprise AI, and cybersecurity. Among notable deals were those with global banking institutions, retail chains, and public sector clients. Infosys has been strategically investing in industry-specific platforms and innovation centers to deepen client engagement and support digital transformation agendas.

In terms of cash flow, Infosys generated free cash flow of $884 million, representing 109% of its net profit—an indicator of strong financial health and discipline. The company ended the quarter with 323,800 employees and voluntary attrition stood at 14.4%, showing relative stabilization in workforce trends. While hiring remained conservative, Infosys continued to invest in upskilling and domain expertise, especially in generative AI. Looking ahead, the company revised its revenue growth guidance upward to 1–3% for FY26, and retained its operating margin outlook of 20–22%, reflecting confidence in its forward pipeline and business fundamentals.

Sources:Reuters