Infosys has reported its Q4 and full-year FY26 results, crossing the landmark $20 billion annual revenue mark for the first time in its history — but the headline from today’s announcement is the company’s FY27 guidance, which came in at a cautious 1.5%–3.5% constant currency revenue growth, alongside an operating margin target of 20%–22%. Brokerage firm Jefferies in its preview note stated that they expect Infosys to guide for 2.0-5.0% YoY constant currency revenue growth and 20-22% magin range for FY27.
The FY27 guidance range is narrow and conservative by historical standards, signalling that Infosys management remains circumspect about the demand environment heading into the new fiscal year — even as deal wins and AI-driven transformations have been gaining traction.
On the results themselves, FY26 was a solid year. Full-year revenues came in at ₹1,78,650 crore ($20,158 million), growing 3.1% in constant currency and 9.6% in reported rupee terms year-on-year.
Reported IFRS operating margin stood at 20.3%, with adjusted operating margin at 21.0%. EPS grew 11.0% in rupee terms for the full year. Free cash flow was robust at $3.7 billion, with FCF conversion at 112.3% of net profit — one of the strongest cash conversion metrics in the sector. Large deal TCV for FY26 was $14.9 billion with a net new component of 55%.
For Q4 specifically, revenues in constant currency grew 4.1% year-on-year, though declined 1.3% sequentially. Reported revenues were ₹46,402 crore, up 13.4% YoY. Q4 operating margin came in at 20.9%. Basic EPS for Q4 was ₹21.01, up 23.8% YoY and 29.9% QoQ. Large deal TCV in Q4 was $3.2 billion and free cash flow was $0.8 billion.
On the segmental front, Life Sciences (+15.5% YoY in CC), Communication (+9.0%) and Energy, Utilities, Resources & Services (+6.7%) were the strongest performing verticals. Hi-Tech remained a weak spot, declining 1.2% in constant currency. Geographically, Europe led with 11.4% reported YoY growth, while North America grew 4.1%. Active client count rose to 1,965, with $1 million-plus clients crossing the 1,000 mark for the first time at 1,018.
CEO Salil Parekh said: “We delivered a resilient performance in FY26 with growth of 3.1% with strong large deal wins 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.”
The market’s reaction will hinge primarily on whether the FY27 guidance midpoint of 2.5% is seen as disappointing against the backdrop of strong deal wins, or whether investors take comfort in the margin guidance of 20%–22% and the strong free cash flow story. The results follow TCS’s stronger-than-expected print last week and will set the tone for Infosys’s stock and the broader IT sector when markets open tomorrow morning.