Infosys Raises FY26 Guidance: Financial Services Buckets Growth

Infosys revised its revenue guidance for FY26 following a stronger-than-expected performance in the June 2025 quarter. The company now expects revenue growth in the range of 1 to 3 percent in constant currency terms, slightly higher than its earlier forecast of 0 to 3 percent. This improvement reflects a rebound in client spending, particularly in key verticals such as financial services and manufacturing. The company also maintained its operating margin guidance at 20 to 22 percent, signaling stable profitability despite a cautious macroeconomic environment.

One of the key drivers behind the positive outlook was the sustained momentum in Infosys’s financial services segment. This vertical has shown consistent growth for five straight quarters, buoyed by strong deal activity. In Q1 FY26, Infosys secured multiple large contracts with prominent banks, including Metro Bank in the UK, AIB in Ireland, and the Bank of Sydney in Australia. These deals are focused on digital transformation, core banking modernization, and cloud-based service integration, helping Infosys solidify its presence in mature banking markets.

Infosys’s leadership highlighted that client confidence has gradually improved as businesses adapt to interest rate cycles and economic pressures. CEO Salil Parekh noted that financial institutions, in particular, are prioritizing IT investments to enhance operational resilience and customer experience. This shift has translated into deal wins that are not just cost-driven but also centered on innovation and long-term digital strategy.

In addition to the financial services growth, Infosys is also seeing traction in its AI and cloud-based offerings. The company continues to invest in these areas, including talent development and partnerships with hyperscalers. The overall deal pipeline remains strong, and Infosys aims to capitalize on its deep client relationships and broad service portfolio. The improved guidance suggests a more stable demand environment, though leadership continues to monitor global risks such as inflation, geopolitical tensions, and regulatory changes. Sources:Bloomberg