Infosys Q4 Results Preview: What to expect on margins, deals and guidance

Infosys Q4 Results Preview: Infosys Ltd. is set to announce its fourth-quarter (Q4FY26) results this week, with the Board meeting scheduled for April 22–23, as per an exchange filing dated March 15. The company will report its audited standalone and consolidated results for the quarter and full financial year ended March 31.

The IT major is expected to declare its earnings around 3:45 PM IST on April 23. The Board will also consider recommending a final dividend for FY26, making payout guidance another key trigger for investors.

Q4FY26 preview: Margins seen stable, growth muted

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According to Zee Business research estimates, Infosys is likely to report a largely stable quarter on a sequential basis.

Revenue in dollar terms is expected at about $5.11 billion, up 0.2 per cent quarter-on-quarter. In rupee terms, revenue is seen at around Rs 46,883 crore, rising 3.1 per cent sequentially.

Earnings before interest and tax (EBIT) is estimated at Rs 9,885 crore, up 4.3 per cent. Margins are expected to improve slightly to 21.1 per cent from 20.8 per cent in the previous quarter.

However, comparability remains limited due to a one-time labour cost impact in the base quarter.

What is weighing on performance

The March quarter is seasonally weak for IT firms. Analysts expect lower billing days and demand softness to cap growth.

The company may guide for around 2.4 per cent year-on-year constant currency revenue growth for FY27, indicating continued caution in the demand environment.

Deal wins are expected to remain moderate, with total contract value (TCV) estimated in the range of $2–3 billion.

Key monitorables for investors

Management commentary will be closely tracked on multiple fronts.

• Impact of AI-led cost efficiencies, often referred to as “AI deflation”
• Business exposure to the ongoing Middle East geopolitical tensions
• Any slowdown due to insourcing by large clients, especially in the BFSI segment

These factors will likely shape the near-term outlook for the company.

Q3 recap: Profit declines, revenue steady

Infosys had reported a 2.2 per cent year-on-year decline in net profit at Rs 6,654 crore in Q3FY26. Revenue rose 8.89 per cent to Rs 45,479 crore.

On a sequential basis, profit fell 9.6 per cent, while revenue grew 2.2 per cent.

The company had flagged a one-time impact of Rs 1,289 crore due to new labour code implementation.

Management highlighted strong traction in enterprise AI offerings, particularly through its Topaz platform. CEO Salil Parekh said clients are increasingly partnering with Infosys for AI-led transformation.

During the quarter, Infosys reported large deal wins worth $4.8 billion, with 57 per cent being net new deals. It also completed a Rs 18,000 crore buyback and paid an interim dividend.

Headcount increased by 5,043 employees to 3,37,034.

Infosys share price trend

Shares of Infosys were trading at Rs 1,271.30, down 3.19 per cent at around 2:30 PM on April 22.

The stock has declined 5 per cent over the past five sessions. It is up 1 per cent in the last one month but has fallen 17 per cent over six months. On a year-to-date basis, the stock is down 22 per cent, while it has slipped 10 per cent over the past one year.

The stock hit a 52-week high of Rs 1,728 on February 3 and a 52-week low of Rs 1,215.1 on March 19.