Infosys Q3 Results: IT firm raises FY26 revenue guidance despite profit miss

Infosys share price: Infosys Ltd raised its FY26 revenue growth guidance even as its consolidated net profit for the December quarter fell, weighed down by a one-time charge linked to labour codes, missing Street expectations.

The IT major reported a 2.2 per cent year-on-year decline in consolidated net profit for Q3 FY26 to Rs 6,654 crore. Revenue for the quarter rose 8.9 per cent on-year to Rs 45,479 crore, the company said in its earnings statement.

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.

Revenue growth guidance raised

Against this backdrop, 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.

The way deals came through, and the manner in which we became the AI partner of choice for our largest clients, gives us confidence as we look into the next financial year. This helped us increase the guidance for the current financial year ending March,” said Infosys CEO Salil Parekh.

Headcount rises in December quarter

Infosys reported an increase in its employee base during the quarter. As of December 31, 2025, the company’s total headcount stood at 3,37,034, compared with 3,31,991 at the end of September and 3,23,379 a year ago.

The headcount rose by 5,043 on a quarter-on-quarter basis and by 13,655 compared with the same period last year.

The number of software professionals increased to 3,19,364 as of December 31, 2025, from 3,14,500 in the previous quarter and 3,06,528 a year earlier. This reflected a sequential addition of 4,864 employees and a year-on-year increase of 12,836.

Sales and support staff strength also moved up during the quarter. Employees in this category rose to 17,670, compared with 17,491 in the September quarter and 16,851 a year ago.

Attrition eases, women workforce stable

Voluntary attrition in IT services declined sequentially. On a trailing twelve-month basis, attrition stood at 12.3 per cent as of December 31, 2025, compared with 14.3 per cent in the previous quarter and 13.7 per cent a year ago.

The share of women employees in the total workforce remained unchanged on a sequential basis at 39.5 per cent, higher than 39.0 per cent in the year-ago period.

Commenting on the performance, Infosys CEO and managing director Salil Parekh said the company delivered a strong Q3 performance, driven by its enterprise AI offerings through Infosys Topaz and a continued focus on re-skilling its workforce.

Infosys share price

Shares of Infosys settled marginally higher at Rs 1,599.05 on the BSE on Wednesday, up 0.07 per cent from the previous close. The company announced its financial results after market hours.