India’s IT giant Infosys has declared its Q1 results — and The company continues to bet big on AI and cloud solutions — and that could be the game changer ahead.
Q1 FY26 Financial Highlights
- Revenue: ₹42,279 crore, up 7.5% YoY and 3.3% QoQ2
- Net Profit: ₹6,921 crore, up 8.7% YoY, but down 1.6% QoQ2
- Operating Margin: 20.8%, slightly lower by 0.3% YoY2
- EPS: ₹16.70, up 8.6% YoY
- Free Cash Flow: ₹7,533 crore, with 108.8% conversion of net profit
Key Announcements
- Revenue Guidance Raised: FY26 constant currency growth revised to 1–3%, up from 0–3%3
- Large Deal Wins: $3.8 billion in total contract value (TCV), with 55% net new business3
- Final dividend of ₹22/share paid on June 30, 2025
- Continued investment in Enterprise AI and GenAI capabilities
Retail Investor Takeaways
- Positive:
- Strategic pivot to AI, automation, and digital is promising for the future. Productivity gains (up to 15%)
- Stable fundamentals: Infosys continues to deliver consistent growth and strong cash flows
- Infosys has maintained profit growth despite a tough global environment
Concerns : Infosys stock is down ~17% YTD
- Revenue growth remains tepid, signaling sluggish client spending.
- Global IT demand remains uncertain, especially from BFSI and retail sectors
- Short-term upside may be limited until discretionary IT spending rebounds
- Analyst Sentiment:
- Motilal Oswal: “Stable”
- Jefferies: “Cautious”
- CLSA: “No surprises”