Infosys Q3 Results Preview: Margin Seen Firm Even As Growth Remains Seasonally Soft

Infosys Ltd. is expected to report muted sequential growth in the December quarter, with margins seen holding firm even as seasonality and furloughs weigh on revenue momentum. The Bengaluru-based software developer will report its third-quarter results on Jan. 14.

Bloomberg estimates show revenue and operating profit rising about 2% quarter-on-quarter, while net profit is seen little changed. EBIT margin is expected to inch up to 21.14% from 21.02% in the previous quarter.

• Revenue seen 2% higher at Rs 45,204 crore versus Rs 44,490 crore

• EBIT seen 2% higher at Rs 9,558 crore versus Rs 9,353 crore

• EBIT margin seen at 21.14% versus 21.02%

• Profit seen little changed at Rs 7,397 crore versus 7,364 crore

Constant currency revenue growth is projected to improve, while headcount is expected to remain broadly stable.

The December quarter is expected to reflect the absence of usual pass-through revenue and the impact of seasonal furloughs. These are partly offset by benefits from earlier deal wins and internal efficiency initiatives. Management commentary on FY26 guidance, discretionary spending trends and budget visibility for calendar year 2026 will be closely watched.

Here's what analysts are expecting from Infosys Q3 Results

Investec

• Expect constant currency revenue growth of 0.8% quarter-on-quarter and 0.7% growth in US dollar terms.

• Growth likely supported by earlier deal wins and partial accretion from the NHSBSA contract.

• Q4 expected to be stronger than usual, led by accretion from NHSBSA and the Telstra joint venture.

• EBIT margin expected to improve, aided by Project Maximus and currency benefits.

• EBIT margin guidance likely unchanged at 20%–22%, while revenue growth guidance may be revised to 2.5%–3.0% from 2%–3%.

Jefferies

• Revenue expected to remain broadly flat sequentially, with around 0.3% growth in constant currency terms.

• Margin likely to expand by about 30 basis points, supported by currency benefits and partly offset by deal ramp-up costs.

• Expect Infosys to maintain FY26 revenue growth guidance of 2.0%–3.0% and margin guidance of 20%–22%.

• Large deal total contract value expected to remain steady.

• Focus areas include FY26 guidance updates, calendar year 2026 budgets, deal pipeline, discretionary spending in BFSI, margin levers, AI adoption and the H-1B visa fee impact.

UBS

• Absence of pass-through revenue likely to result in a muted growth quarter.

• Seasonal furloughs expected to weigh on margins.

• Expect the company to maintain FY26 guidance.

Nuvama

• Expect constant currency revenue growth of 0.4% quarter-on-quarter and 0.2% growth in US dollar terms.

• EBIT margin likely to expand by around 20 basis points, supported by Project Maximus and currency tailwinds.

• Expect Infosys to maintain FY26 revenue growth guidance of 2%–3% and margin guidance of 20%–22%.