Infosys Q4 Results: From guidance to deal wins to AI focus, 7 takeaways from Bengaluru IT giant's earnings

Infosys Q4 FY26 Results: Bengaluru-headquartered Infosys -- the country's second-largest IT company -- on Thursday staged a largely its financial results for the quarter and the year ended ended March 31. As the IT giant closed FY26 on a resilient note, it guided for revenue growth of between 1.5 per cent and 3.5 per cent in FY27.

For the year ended March 31, its constant-currency revenue grew 3.1 per cent to $20,158 million. It had guided for revenue growth of between 3.0 per cent and 3.5 per cent.

Here are seven key takeaways from the latest Infosys results:

Infosys Q4 Results | Top and bottom lines

Infosys clinched 27.6 per cent quarter-on-quarter and 20.9 per cent year-on-year growth in its consolidated net profit to Rs 8,509 crore for the January-March period.

Its fourth-quarter revenue grew 2.0 per cent sequentially and 13.4 per cent annually to Rs 46,402 crore, nearly meeting analysts' exectations.

According to Zee Business research, the IT major was estimated to log March-quarter revenue of Rs 46,883 crore, which translates to a sequential rise of 3.1 per cent. The analysts did not give a profit estimate citing the impact of labour codes-related costs in the third quarter.

Constant currency

In constant currency terms, revenue fell 1.3 per cent on a quarter-on-quarter basis, according to a company statement. Constant currency revenue determines sales without the effects of forex rate-related fluctuations.

Segment-wise revenue contribution

Here's how some of the key segments at the IT major contributed to the IT company's overall revenue in Q4:

• Financial services: Up 1.2 per cent sequentially at Rs 12,976 crore
• Manufacturing: Down 2.8 per cent sequentially at Rs 7,358 crore
• Energy, utilities, resources and services: Up 1.6 per cent sequentially at Rs 6,114 crore
• Retail: Up 2.2 per cent sequentially at Rs 5,958 crore
• Communication: Up 4.2 per cent sequentially at Rs 5,752 crore

Geography-wise revenue contribution

While the North America revenue grew 4.1 per cent on a quarter-on-quarter basis, sales from the European markets increased 11.4 per cent, according to the company.

• North America: $2,808 million in Q4 vs $2,698 million in Q3
• Europe: $1,645 million in Q4 vs $1,476 million in Q3
• India: $132 million in Q4 vs $139 million in Q3
• Rest of the world: $455 million in Q4 vs $417 million in Q3

More on Infosys headline numbers

Infosys Earnings | Operational performance

The IT behemoth's March-quarter earnings before interest and taxes (EBIT) increased 2.8 per cent on quarter to Rs 9,743 crore, translating to an EBIT margin of 21 per cent versus 20.8 per cent in the October-December period.

The EBIT fell short of analyst expectations.

According to Zee Business research, Infosys was estimated to log Rs 9,885 crore in quarterly EBIT. The analysts had pegged the company's margin at 21.1 per cent.

Infosys deal wins

The IT major's large-deal total contract value (TCV) declined to $3.2 billion in Q4 from $4.8 billion in the previous three months.

For the financial year 2025-26, its deal wins amounted to $14.9 billion.

Number of major deals

The company reported no change in the number of $100 million-plus clients in Q4, at 41, compared to the previous three months. In the quarter ended March 2025, the number had stood at 39.

In the $50 million-plus category, the company added four new clients in Q4, taking the total to 88, from 84 in Q3. This number was recorded at 85 in the final quarter of FY25.

The contribution of the company's top 10 clients to its revenue shrank to 20.2 per cent in Q4 FY26, from 20.6 per cent in Q3 FY26 and 20.7 per cent in Q4 FY25.

Infosys attrition

IT services attrition worsened to 12.6 per cent on a last-12-month basis in the March quarter, from 12.3 per cent in the October-December period, according to the statement.

The percentage of women employees at the company remained unchanged sequentially at 39.5 per cent in Q4. The proportion had stood at 39.0 per cent in the final quarter of FY25.

Infosys dividend

The company announced a final dividend of Rs 25 per equity share for FY26, with a record date of June 10 and a payment date of June 25.

The software exporter is scheduled to hold its 45th AGM on Tuesday, June 23

Infosys management commentary

Infosys CEO and MD Salil Parekh said that the company delivered a resilient performance in FY26 with 3.1 per cent growth and strong large deal wins to the tune of $14.9 billion "reflecting the robustness of our enterprise AI value proposition and market share gains in large transformation opportunities".

"The simplicity and strength of our AI services strategy across six areas is gaining traction in the market further strengthened by strong ecosystem AI partnerships enabling clients to get value from AI," said Parekh.

What CEO Salil Parekh said on AI

He said: "Our AI First value framework and differentiated Topaz Fabric, position us uniquely to deepen client trust and gain greater share of the market."

FY26 a year of disciplined execution and financial resilience: CFO Jayesh Sanghrajka

Infosys CFO Jayesh Sanghrajka described FY26 as "a year of disciplined execution and financial resilience reflecting in 21 per cent adjusted operating margin and healthy free cash flow of $3.7 billion".

"Savings from Project Maximus enabled us to invest in strategic areas like talent, AI and sales & marketing," he said.

The CFO also said that the company remains focused on margins and cash generation as it navigates an evolving macro environment.

Infosys guidance

Infosys said it expects revenue growth to be between 1.5 per cent and 3.5 per cent (constant currency) for FY27.

The company had guided for 3.0-3.5 per cent revenue growth for the last financial year.

Operating margin guidance

The IT giant guided for operating margin of between 20 per cent and 22 per cent in FY27.

TCS kicked off results season on a steady note

Infosys results come two weeks after the country's largest IT company, TCS, kicked off the earnings season with an in-line financials backed by solid deal wins.

Its net profit surged 28.7 per cent sequentially to Rs 13,718 crore while constant currency revenue growth stood at 1.2 per cent. The Tata group IT giant's margin expanded by 10 bps to 25.3 per cent -- slightly better than the 25.19 per cent expected by Zee Business analysts.

TCS's management sounded positive for FY27 on the back of a strong deal pipeline. The company remained focused on growth and profitability, noting wage hike-related headwinds over the near term.