Infosys Ltd reported its Q1 FY26 results on July 23, 2025, posting a stronger-than-expected constant currency (CC) revenue growth of 2.6% QoQ and 3.8% YoY, aided by large deal wins and resilient demand in key segments.
The company’s operating margin stood at 20.8%, while free cash flow remained strong at $884 million, which is 109.3% of net profit. Infosys reported large deal total contract value (TCV) at $3.8 billion, with 55% of that being net new business.
Earnings per share (EPS) in rupee terms rose 8.6% YoY. Return on equity improved by 140 basis points to 30.4%.
Key Metrics for Q1 FY26:
| Metric | Q1 FY26 | QoQ Change | YoY Change |
|---|---|---|---|
| Revenue (in $ mn) | 4,941 | +2.6% (CC) | +3.8% (CC) |
| Operating margin | 20.8% | — | — |
| EPS (₹ terms) | ↑ 8.6% YoY | — | ↑ 8.6% |
| Large deal TCV ($ bn) | 3.8 | — | — |
| Free cash flow ($ mn) | 884 | — | — |
FY26 Guidance:
-
Revenue growth of 1–3% in constant currency
-
Operating margin expected in the range of 20–22%
CEO Salil Parekh highlighted the strength of Infosys’ enterprise AI capabilities, the company’s competitive positioning, and strong client relationships as key drivers behind the results.
The company remains cautious about discretionary spending but continues to see healthy large deal momentum and expects gradual improvement in client budgets during the year.
