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Revenue
₹42,279 Cr
verified against source
Revenue YoY
3.8%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Infosys delivered a strong Q1 FY26 with constant currency revenue growth of 3.8% YoY and 2.6% QoQ, driven by broad-based growth across industries and geographies. Large deal TCV was robust at $3.8 billion with 55% net new, including a mega deal with a global bank. Operating margin came in at 20.8%, down 30bps YoY due to compensation hikes and sales investments, partly offset by Project Maximus benefits. Management revised FY26 revenue guidance to 1%-3% CC (from 0%-3%), citing persistent macro uncertainty and no improvement in client discretionary spending. AI adoption is accelerating, with 300 agents built and strong pipeline in enterprise AI. Key risk: delayed decision-making and tariff uncertainty could further pressure H2 growth.
Colored figures show movement against the previous available record.
Guidance to track
- Revised from 0%-3% to 1%-3% in constant currency, reflecting strong Q1 but persistent macro uncertainty.
- Margin guidance unchanged; aspiration to improve margin YoY despite headwinds from compensation and deal ramp-ups.
- Continued strong cash generation; 5th consecutive quarter of FCF >100% of net profit.
Risks flagged
- Persistent tariff and geopolitical uncertainty are delaying client discretionary spending and elongating decision cycles.
- Management expects H1 to be stronger than H2 due to normal seasonality, implying potential growth deceleration.
- Productivity gains from AI are shared with clients, potentially limiting margin expansion and revenue per employee.
- As clients consolidate vendors, competition with larger peers could pressure margins and win rates.
Key quotes
- We had a strong start to a financial year. Our revenues grew 2.6% sequentially and 3.8% year-on-year in constant currency terms.
- While Q1 was strong, if you look at the environment underlying, it hasn't really changed. Q2, we are not really seeing the signs of significant environment changes.
- We are the only large India-based technology services company to be positioned as a leader in Gartner's 1st Generative AI Consulting and Implementation Services quadrant.
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