Infosys Q1 Results Preview: Analysts See Modest Revenue Growth, Guidance Update In Focus

Infosys Ltd. is set to announce its first-quarter earnings on Wednesday, with analysts expecting modest sequential growth in revenue and Ebit, while investor focus remains on the company’s guidance for the ongoing financial year.

Most brokerages anticipate Infosys will narrow or raise the lower end of its full-year revenue growth guidance from the earlier 0–3% band, citing stable macro conditions and deal momentum. The consensus view suggests the company is unlikely to significantly raise the upper end of the guidance.

The Bengaluru-based software services provider's first-quarter consolidated revenue is likely to rise 2% quarter-on-quarter to Rs 41,724 crore, compared with Rs 40,925 crore in the previous quarter, according to Bloomberg estimates. Ebit is also seen up 2% at Rs 8,727 crore from Rs 8,575 crore. Ebit margin is projected to remain steady at 20.91%, marginally lower than 20.95% clocked in the sequential quarter.

Markets will closely watch management commentary on the demand environment, large deal conversions, and progress in the financial services segment—Infosys’ largest vertical. Any revision to FY26 revenue guidance or margin outlook will be key triggers.

• Revenue seen up 2% at Rs 41,724 crore versus Rs 40,925 crore

• EBIT seen up 2% at Rs 8,727 crore versus Rs 8,575 crore

• EBIT margin seen at 20.91% versus 20.95%

• Net profit seen down 4% at Rs 6,778 crore versus Rs 7,033 crore

Here is what analysts are expecting from Infosys in its Q1 results:

• Sees strong QoQ growth helped by seasonal recovery, stable macro, and acquisitions (adds 30–40 basis points QoQ)

• Expects FY26 guidance raised at lower end; new band seen at 1–3% versus 0–3% earlier (excl. 40–50 basis points inorganic)

• Forecasts FY26 revenue growth at 2.4%

• Outlook appears de-risked at lower end and reasonable at midpoint

• Downside risks: stronger rupee, weak US macro (61% revenue), FS slowdown (30% revenue), deal ramp-up delays

• Sees soft Q1 supported by FX, limited scope for guidance raise

• Expects tight signings; AI-related pricing pressure may weigh on revenue

• Expects Infosys to show growth in Q1 among top five IT firms

• Organic growth led by FS and retail, despite pass-through revenue drop

• Guidance likely raised by 100 basis points on both ends

• Lower pass-through may offset wage hikes, margins expected to stay flat

• Commentary on deal closures and client budgets in focus

• Projects 1.5% QoQcc revenue growth, aided by FS traction and 30 bps inorganic impact

• Sees 160 bps cross-currency tailwind

• Margins may fall around 35 basis points QoQ due to absence of Q4 one-offs, offset by currency and revenue growth

• Expects FY26 revenue guidance to be raised to 1–3% YoY cc, margin band at 20–22%

• Large deal TCV expected steady; watch for commentary on BFSI, short-cycle deals, and FY26 margin levers

• Expects USD revenue to grow 2.5% QoQ (140 basis points CC impact, basis points inorganic)

• Around 1% organic QoQ growth expected

• YoY organic CC revenue growth seen flat

• EBIT margin may decline 50 basis points QoQ due to wage hike impact

• Currency to have marginal negative margin impact

• Expects guidance to be maintained at 0–3%

• Will watch for tariff impact on deal bookings and forward outlook