Infosys has released its Q1 FY26 earnings report, presenting a mixed picture of performance. While the company managed to grow its revenue sequentially, it saw a marginal drop in its net profit and operating margins. According to the latest results, Infosys reported a 1.6% decline in net profit, which came in at ₹6,920 crore compared to ₹7,033 crore in the previous quarter. On the other hand, rupee revenue rose by 3.3% to ₹42,279 crore, up from ₹40,925 crore in the previous quarter, signaling steady demand.
The company’s EBIT also rose by 2.66% sequentially, reaching ₹8,803 crore compared to ₹8,575 crore. However, the operating margin narrowed slightly, coming in at 20.8% versus 21% in Q4 FY25. Despite the tight margin picture, Infosys raised its constant currency (CC) revenue growth guidance for FY26, moving the band up to 1–3% from the earlier 0–3%. The lower end of the revenue growth forecast was lifted to 1%, reflecting a cautiously optimistic outlook. Meanwhile, the margin guidance for FY26 remains unchanged at 20–22%.
On a year-on-year basis, Infosys showed improvement across key metrics. Revenue increased to ₹4,227 crore from ₹3,931 crore in Q1 FY25. Profit before tax (PBT) rose to ₹9,740 crore, up from ₹9,021 crore, while profit after tax (PAT) grew to ₹6,924 crore from ₹6,374 crore a year ago. Earnings per share (EPS) also improved, reaching ₹16.70 versus ₹15.38 in the same period last year.
Quarter-on-quarter figures, however, paint a mixed picture. Revenue improved from ₹4,092 crore to ₹4,227 crore, and PBT rose from ₹9,663 crore to ₹9,740 crore. But PAT dipped slightly from ₹7,038 crore to ₹6,924 crore. EPS also dropped marginally to ₹16.70 from ₹16.98.
The company’s client metrics reflect healthy growth in high-value clients. As of June 30, 2025, Infosys had 1,861 active clients, slightly lower than the 1,869 recorded at the end of the March quarter. During Q1 FY26, the company added 93 new clients, higher than the 91 added in Q4 FY25. The number of clients contributing over $1 million in revenue increased to 1,011, up from 992 in the previous quarter. Similarly, clients contributing more than $10 million rose to 317 from 309, while those in the $100 million-plus category grew to 41 from 39. The number of clients in the $50 million+ bracket remained constant at 85.
In terms of revenue contribution, Infosys saw a steady performance. The top 5 clients accounted for 13.2% of total revenues, slightly up from 13.1% in the previous quarter. The top 10 clients contributed 20.8%, compared to 20.7% in Q4 FY25, and the top 25 clients made up 35.2% of total revenues, up from 34.8%. The company’s Days Sales Outstanding (DSO) stood at 70 days, which is slightly higher than the 69 days in the previous quarter but better than the 72 days reported in the same period last year.
Overall, Infosys’ Q1 FY26 performance reflects stability in revenues and client growth, even as margin pressures and a dip in net profit present some concerns. The upward revision of revenue growth guidance, though modest, signals cautious confidence as the company navigates an uncertain macroeconomic landscape.
Following This Q1 Results Infosys ADR Trading Flat on NewYork Stock exchange
Disclaimer:
This article is for informational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisors before making any investment decisions.
