Infosys Q1 Results 2025: Key Highlights, Financial Performance, and Outlook

India’s second-largest IT services exporter, Infosys, has announced its Q1 financial results for FY26, showing strong performance amidst a challenging global environment. Here is a comprehensive summary of Infosys’ Q1 results, deal wins, and management commentary for investors and stakeholders.

Infosys Q1 FY26 Financial Results at a Glance

Financial Performance & Growth Drivers

• Revenue Growth: Infosys reported an 8% year-on-year increase in revenue to Rs42,279 crore, with constant currency revenue growth standing at 3.8% YoY and 2.6% QoQ. Dollar revenue for the quarter was $4,941 million

Net Profit: Consolidated net profit rose 9% YoY, reaching Rs6,921 crore, surpassing analyst expectations

Operating Margin: Maintained at 20.8%, well within the company’s guided range of 20–22% despite margin pressures from wage hikes and other operational costs

Deal Wins: The company secured $3.8 billion in large deals, with 55% being net new contracts, underscoring strong client relationships and competitive positioning

Vertical & Geographic Performance

• BFSI and Hi-Tech verticals led the growth, while life sciences and “other” segments saw softness

Geographically, North America contributed 56.5% of revenue, while Europe’s share rose to 31.5%

Guidance and Management Commentary

• Revenue Guidance: For FY26, Infosys has raised its constant currency revenue growth guidance to 1–3%, up from the earlier 0–3% projection. This revision reflects improved deal flow and business momentum

Margin Guidance: EBIT margin guidance is retained at 20–22% for the fiscal year

AI & Productivity: CEO Salil Parekh cited enterprise AI solutions and large-scale client consolidation as major contributors to Q1 performance:

“Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees.”

Comparison with Peers

• Infosys was the only large-cap Indian IT major to report positive constant currency revenue growth this quarter, while peers like TCS, Wipro, and HCLTech saw sequential declines

Strong deal momentum and resilient cash flow conversion (over 100% of net profit for five consecutive quarters) further differentiate Infosys from its competitors

• Steady Growth: Infosys remains on a growth trajectory, with robust deal wins fueling future revenue.
• Margin Discipline: Operational efficiency initiatives like Project Maximus are helping maintain healthy margins despite macro headwinds

Key Q1 FY26 Financial Highlights

• Revenue: ₹42,279 crore (up 7.5% YoY)
• Net Profit: ₹6,921 crore (up 8.7% YoY)
• EBIT (Operating Profit): ₹8,803 crore
• EBIT Margin: 20.8% (Flat QoQ, slight dip YoY)
• Large Deal Wins: $3.8 billion, with 55% as net-new contracts
• Free Cash Flow: $884 million (109.3% of net profit)
• Revenue Guidance (FY26): Increased to 1–3% constant currency (from 0–3% earlier)
• Margin Guidance (FY26): Retained at 20–22%

Market Performance (as of July 23, 2025)

• Infosys Share Price (NSE): ₹1,574.50
• Infosys ADR Price (NYSE: INFY): $18.26 (July 22 closing)

Key Takeaways for Investors

AI Adoption: Increasing focus on digital and AI-led transformation is boosting productivity and client stickiness.

Shareholder Value: Infosys continues to deliver strong cash flows and competitive returns, evidenced by a 140bps YoY improvement in ROE to 30.4%

Conclusion

Infosys’ Q1 FY26 results highlight the company’s resilience and growth acumen. The revised guidance, strong deal pipeline, and commitment to digital innovation position Infosys as a front-runner among global IT service providers entering the rest of FY26.