Infosys posts ₹6,921 Cr profit (up 9% YoY), revenue ₹42,279 Cr (+8%), and boosts FY26 guidance to 1–3% CC growth. Dive into key metrics, deal wins, margin trends, analyst takeaways, and future outlook.
📊 Infosys Q1 FY26 Results: At a Glance
Infosys Ltd reported strong Q1 FY26 results on July 23, 2025, beating expectations and providing a revenue upgrade for FY26. The highlights:
- Net Profit: ₹6,921 Cr, up 9% YoY (₹6,368 Cr YoY) The Times of India+5The Economic Times+5The Economic Times+5
- Revenue (Ops): ₹42,279 Cr, up ~8% YoY The Economic TimesmintThe Times of India
- Constant Currency Growth: +3.8% YoY; +2.6% QoQ The Economic Times+4mint+4Bajaj Broking+4
- Operating Margin: 20.8% (down 0.3% YoY, 0.2% QoQ) Moneycontrol+5The Economic Times+5Bajaj Broking+5
- Free Cash Flow: US $884 M (~109% of net profit) The Economic Times+3The Economic Times+3PR Newswire+3
- Earnings per Share: ₹16.70/sh; +8.6% YoY Bajaj Broking+1The Financial Express+1
💡 Deal Wins & Guidance Boost
- Large Deals TCV: $3.8 Bn, 55% net new — reinforcing Infosys’ enterprise AI and digital leadership The Economic Times+11mint+11Bajaj Broking+11
- Guidance Raised: FY26 revenue outlook (constant currency) upgraded to 1–3% (from 0–3%); operating margin reaffirmed at 20–22% PR Newswire+6The Financial Express+6mint+6
🧭 Segment & Regional Performance
- By verticals: Manufacturing (+12.2% CC), Energy/Utilities/Resources (+6.4%), Financial Services (+5.6%), Hi‑Tech (+1.7%). Life Sciences and “others” declined The Economic Times+2mint+2Bajaj Broking+2.
- Geographically: North America remains dominant (~56–58% of revenues); Europe growing (~12% YoY); India saw a small drop (~1%) MoneycontrolmintThe Economic Times.
📈 Investor Takeaways
- Margin Compression is Manageable
A slight dip to 20.8% is within guided range, supported by cost controls and pricing discipline Moneycontrol+6mint+6The Economic Times+6. - Cash Flow Remains Strong
FCF >100% of profit for 5th straight quarter—great for debt servicing and dividends The Economic Times+3PR Newswire+3Bajaj Broking+3. - AI Wins Driving Growth
The $3.8 Bn large deals—core claim for Infosys’ AI-enabled services provide deal pipeline visibility The Economic Times. - Conservative Yet Confident Guidance
Raising the floor to 1% CC shows confidence, even amid macro caution and currency impact navbharattimes.indiatimes.com+12The Financial Express+12Moneycontrol+12.
🤔 What to Watch Ahead
- Q2 Guidance: Management commentary on macro demand, especially from BFSI & manufacturing pipelines.
- Margin Levers: Wage inflation and large deal ramp costs could impact margins — monitor carefully.
- Attrition & Hiring: Q1 saw modest net hiring (+210) with stable attrition (~14.4%) The Economic TimesThe Financial Express+5Moneycontrol+5The Economic Times+5.
🙋 FAQs
Q1: How did Infosys perform in Q1 FY26?
It posted ₹6,921 Cr profit (+9% YoY) on ₹42,279 Cr revenue (+8% YoY), beating expectations. telugu.samayam.com+6The Economic Times+6The Economic Times+6
Q2: Why is guidance important?
Upgrading revenue guidance (1–3% CC) shows long-term deal strength and cautious optimism. The Economic Times+1The Economic Times+1
Q3: Are margins worrying?
Margins slightly down but stable; still within 20–22% guided band. mintPR Newswire
Q4: Should investors buy now?
If you back Infosys’ AI-driven strategy and trust its conservative guidance, current valuation makes it attractive—especially for long-term portfolios.
✅ Final Verdict
Infosys delivered a solid Q1 with beat-and-raise guidance, driven by strong deal wins and healthy free cash flow. While margins dipped slightly, overall financial health remains robust. For growth-seeking investors, the AI strategy and renewed optimism make it a compelling pick—but monitor macro trends and hiring patterns in upcoming quarters.
⚠️ Disclaimer
This content is for educational purposes only, not investment advice. Consider your own research and consult a SEBI-registered advisor before making decisions.
