Infosys Q1 Results: Lower-End FY26 Revenue Guidance Raised After New Deal Wins; Profit Meets Estimates

Infosys Ltd. on Wednesday has raised its lower-end revenue guidance for the ongoing fiscal. While its profit for April-June period declined, it met analysts expectations.

The information technology company now expects its revenue for the financial year ending March 2026 to be around 1-3%, as compared to the previous forecast of 0-3%, according to its statement to the exchanges.

Revenue of Bengaluru-based largest IT services firm rose 3.3% over previous quarter to Rs 42,279 crore in the three months ended June, according to an exchange filing. That compares with the Rs 41,724-crore consensus estimate of analysts tracked by Bloomberg.

The uncertainties and potential tariffs continue to weigh on sentiment, Anand Rathi Institutional Equities' Research Analyst Sushovon Nayak told NDTV Profit in an interaction. “I think it's a conservative guidance and we'll have to see how it evolves over the next few quarters,” Nayak said.

Quarter-on-quarter revenue growth in constant currency stood at 2.6%, reversing a 3.5% decline in the March quarter. Year-on-year, revenue grew 3.8% in constant currency terms.

Infosys Q1 Results: Key Highlights (Consolidated, QoQ)

• Revenue up 3.3% to Rs 42,279.00 crore versus Rs 40,925 crore (Estimate: Rs 41,724 crore)

• EBIT 3.3% to Rs 6,921 crore versus Rs 7,033 crore (Estimate: Rs 8,714 crore)

• EBIT margin contracted by 20 basis points basis points at 20.8% versus 21% (Estimate: 20.91%)

• Net profit down 2% to Rs 6,921 crore versus Rs 7,033 crore (Estimate: Rs 6,765 crore)

One basis point is one-hundredth of a percentage point.

Large Deal Contracts

Infosys reported large deal total contract value at $3.8 billion for the June quarter, up from $2.6 billion in the previous quarter. Net new deals accounted for 55% of the total TCV.

"Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees," CEO Salil Parekh said in a statement. “Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships," he added.

The revenue growth in constant currency was strong, and the revenue guidance and TCV were also positive, according to Nayak. “Overall, it is a good set of numbers,” he said.

Attrition And Headcount

Employee attrition rose to 14.4% in the June quarter, up from 13.1% in the March quarter. Total headcount stood at 3.24 lakh as of June 2025.

Shares of Infosys ended 0.3% higher ahead of the results announcement as compared to 0.6% gains in benchmark NSE Nifty 50. Out of 49 analysts tracking the company, 35 maintain a 'buy' rating, 11 recommend a 'hold,' and three suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 10.3%.