Infosys Q1 FY26 Earnings: Bengaluru-headquartered Infosys–the country’s second-largest IT firm–on Wednesday raised the lower end of its revenue growth guidance by 100 basis points. It now expects its FY26 revenue to expand in the range of 1-3 per cent in constant currency terms, instead of its earlier projection of 0-3 per cent. The IT giant maintained its annual margin guidance at 20-22 per cent for the year ending March 31. Constant currency projections remove the impact of fluctuating forex rates.
The guidance adjustment was largely along expected lines.
Zee Business analysts had predicted a revision in the annual guidance to 1-4 per cent.
What does guidance tell about a company?
Revenue guidance is a company’s estimate of its financial performance in the future.
As a key tool for investors and analysts to assess a company’s health, guidance offers a clear picture of how it pegs potential growth trajectory, especially when juxtaposed with management commentary and changing market trends.
Infosys Q1 FY6 Results | How did Bengaluru-based IT major fare in April-June 2025? A summary
Infosys reported a consolidated net profit of Rs 6,921 crore for the quarter ended June 30, a quarter-on-quarter decline of 1.6 per cent that was still better than Street estimates. It registered Rs 42,279 crore in quarterly revenue, up 3.3 per cent sequentially. In dollar terms, revenue stood at $4,941 million, according to the company.
Constant currency revenue growth came in at 2.6 per cent.
The top line also met the mark in terms of analysts’ expectations.
According to Zee Business research, Infosys was estimated to report a net profit of Rs 6,604 crore with revenue of Rs 41,990 crore or $4,886 million for the first quarter of the financial year. Read more on Infosys results here
Management Commentary | What Infosys CEO Salil Parekh said
“Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 3,00,000 employees”, said Salil Parekh, CEO and MD, Infosys.
“Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships,” added Parekh.
Infosys Q1 operational performance
The IT company’s operating margin contracted by 20 basis points on a quarter-on-quarter basis to 20.8 per cent.
Deal wins
Infosys said the total contract value (TCV) of its large deals was at $3.8 billion for the June quarter.
For the final quarter of FY25, the comparable figure was at $2.6 billion.
Revenue mix
North America accounted for 56.5 per cent of the company’s overall revenue, whereas the contribution of European markets stood at 31.5 per cent. Revenue from the ‘rest of the world’ was recorded at 9.1 per cent.
Revenue from the domestic market remained unchanged sequentially, at 2.9 per cent.
The North American and European contributions were at 57.1 per cent and 31.2 per cent in Q4, respectively.
Infosys’s earnings come amid a mixed earnings season for the Indian IT pack.
Attrition worsens at Infosys
IT services-related attrition was at 14.4 per cent on a trailing 12-month basis, higher than 14.1 per cent three months ago, according to Infosys.
Infosys vs Nifty 50 vs Nifty IT
Earlier on Wednesday, the Infosys stock rose 0.3 per cent to end at Rs 1,574.4 apiece on BSE.
Infosys shares have declined 13.9 per cent in a year, underperforming a 2.8 per cent gain in the Nifty 50 and a 7.1 per cent fall in the Nifty IT.
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