Infosys Q3FY26 Results: Net profit slips 2.2%, revenue rises nearly 9% YoY

Infosys Q3FY26 Results: IT services major Infosys Ltd. reported a mixed performance for the December quarter (Q3FY26), with revenue and operating margins coming in ahead of Zee Business estimates, while net profit declined on a year-on-year basis.

The company reported a 2.2 per cent fall in consolidated net profit to Rs 6,654 crore, compared with Rs 6,806 crore in the same quarter last year. Net profit, however, was broadly in line with expectations amid continued investments and pricing pressures.

Revenue beats estimates, rises nearly 9 per cent YoY

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Revenue from operations rose 8.89 per cent year-on-year to Rs 45,479 crore, higher than the Zee Business estimate of Rs 44,490 crore, marking a clear beat. On a quarter-on-quarter basis, revenue increased 2.22 per cent from Rs 44,490 crore reported in the September quarter.

On a consolidated basis, total income for the quarter stood at Rs 46,618 crore, up 9.37 per cent year-on-year from Rs 42,623 crore. Sequentially, total income rose 2.52 per cent, compared with Rs 45,472 crore in the previous quarter.

Operating performance stronger than expected

Operating performance was marginally better than anticipated. EBIT for the quarter stood at Rs 9,570 crore, compared with the Zee Business estimate of Rs 9,353 crore, reflecting a 2.3 per cent upside.

As a result, EBIT margin improved to 21.16 per cent, beating the estimate of 21.0 per cent, supported by cost optimisation and efficiency measures.

On an IFRS basis, operating margin stood at 18.4 per cent, while adjusted operating margin was higher at 21.2 per cent.

Dollar revenue flat as expected

In dollar terms, Infosys reported revenue of $508 crore, which was flat and exactly in line with Zee Business estimates, reflecting currency movements and subdued discretionary spending by global clients.

Management commentary highlights AI traction

Commenting on the results, Salil Parekh, CEO and Managing Director, said clients are increasingly viewing Infosys as a strategic AI partner. “Clients increasingly view Infosys as their AI partner with demonstrated expertise, innovation capabilities and strong delivery credentials. This has helped them unlock business potential and enhanced value realisation,” Parekh said.

Labour code changes weigh on profit

Profit for the quarter was impacted by a Rs 1,289 crore charge related to labour codes. Excluding this impact, Infosys pointed to steady constant-currency growth, strong deal wins and improving business momentum, despite the quarter being seasonally weak.

Guidance

Infosys raised its FY26 revenue growth guidance to 3.0–3.5 per cent in constant currency terms. It reiterated its operating margin guidance of 20–22 per cent for the year. In the previous quarter, the company had revised its FY26 revenue growth outlook to 2–3 per cent in constant currency, from an earlier forecast of 1–3 per cent, while maintaining its margin guidance.

The guidance upgrade signals growing confidence in demand visibility and execution, setting Infosys apart from peers that remain cautious on the near-term outlook.

Earnings per share and stock movement

The company reported IFRS basic EPS of Rs 16.17, while adjusted basic EPS stood at Rs 18.53. Shares of Infosys were trading at Rs 1,608.90 at closing on Wednesday.