Overview: Resilience Amidst Challenges

Infosys, one of India’s premier IT firms, has demonstrated a robust start to FY26, reporting steady growth in a challenging global environment. In the June quarter (Q1 FY26), the company delivered a 3.8% year-on-year revenue increase in constant currency, while outpacing peers on key performance indicators.

With broad-based momentum across all five major industry verticals and geographies, Infosys’s management has expressed renewed confidence by raising the lower band of its FY26 revenue guidance, now projecting a growth range of 1-3% even as tech spending globally faces cautious sentiment.

The company’s proactive investments in Artificial Intelligence (AI), automation, and digital transformation are helping clients drive operational efficiency and unlock quicker decision-making, keeping Infosys ahead in the innovation curve.

Financial Highlights: Solid Growth & Margin Vigilance

  • Revenue: ₹3.8% year-on-year growth in constant currency for Q1 FY26, with a sequential quarterly increase of 2.6%.
  • Net Profit: 9% year-on-year jump, underlining strong operational performance.
  • Operating Margin: 20.8% for the quarter, just below the previous 21%, mainly due to wage hikes and higher staff compensation, yet within the guided 20-22% range.
  • Guidance Raised: Full-year constant currency growth guidance revised upward to 1-3%. Margin guidance retained at 20-22%.
Revenue Growth Net Profit Growth Operating Margin

Note: Revenue and profit figures reflect year-on-year Q1 growth; margin is for Q1 FY26.

Digital Transformation & AI: Driving Next-Gen Value

Infosys has intensified its investments in Artificial Intelligence across sectors, building and deploying over 300 specialized AI agents spanning business, operations, and IT. These digital workers are designed to accelerate decision-making, optimize customer experiences, and boost operational efficiencies for clients worldwide.

  • AI Agents Deployed: Infosys’s AI units are assisting across “horizontal” (core processes cutting across industries) and “vertical” (industry-specific) functions, rapidly scaling real-world impact for clients.
  • Strategic Focus: AI-powered automation and digital transformation remain at the heart of Infosys’s innovation pipeline, providing solutions both for internal operations and clients’ evolving needs.
  • CEO Perspective: Salil Parekh, Infosys CEO & MD, highlighted that demand for AI solutions remains strong, with visible traction in large deal wins and adoption across major client geographies.

Infosys’s proactive digital strategy positions it as a leading transformation partner for businesses navigating fast-changing technology landscapes.

Growth by Industry: A Closer Look at Verticals

Vertical YoY Q1 Growth Key Notes
Manufacturing 12.2% Strongest sector; robust tech adoption fuels expansion
Energy, Utilities, Resources & Services 6.4% Continued demand for digital solutions
Financial Services 5.6% Resilient performance despite global sector volatility
Other Verticals — Steady, broad-based momentum across segments

The manufacturing segment led growth, driven by accelerated digitalization, while energy and financial sectors also contributed solidly. This cross-sectoral strength underscores Infosys’s diversified client base and sectoral agility.

Employee Update: Steady Workforce, Focus on Skills

  • Total Headcount: 323,788 employees, reflecting a net addition of just 210 in Q1, as the company prioritizes productivity and cost discipline over aggressive hiring.
  • Compensation Policy: Marginal drop in margins attributed to timely wage hikes and higher payouts to employees, ensuring market competitiveness and morale.
  • Upskilling Initiatives: Infosys’s focus on next-generation skills, especially in AI and digital domains, remains central to its talent strategy, maintaining a future-ready workforce.

Despite muted hiring trends industry-wide, Infosys’s approach emphasizes upskilling and supporting a high-performance, digitally savvy workforce.

The Road Ahead: Guidance & Strategic Priorities

  • FY26 Guidance: Revenue growth forecast now stands at 1-3% (constant currency), signaling the company’s optimism amid global headwinds.
  • Operating Margins: Guidance maintained at 20-22%, balancing wage increases with automation and efficiency drives.
  • Strategic Themes: Ongoing investments in AI, automation, and client-centric digital solutions continue to underpin both growth and operational resilience.
  • CEO Outlook: Leadership cited broad-based demand, promising deal pipelines, and strong digital portfolio as key enablers for sustained outperformance.

As global enterprises recalibrate technology investments, Infosys’s combination of innovation, execution, and client focus forms a solid platform for competitive advantage and long-term value generation.

Frequently Asked Questions

Infosys posted a 3.8% revenue growth year-on-year in constant currency for the June quarter, with a 9% increase in net profit. Its operating margin stood at 20.8%, within the guided range despite minor impact from wage increases.
The manufacturing sector recorded the highest year-on-year growth at 12.2%, followed by energy, utilities, resources & services (6.4%) and financial services (5.6%) in Q1 FY26.
Infosys has built and deployed over 300 AI agents across business, operations, and IT domains, strengthening its position as a digital transformation leader. The company’s AI-first strategy supports clients in decision automation and operational efficiency.
Management raised its revenue growth guidance to 1-3% in constant currency, reflecting confidence in demand pipelines and strong execution. Margins are expected to remain between 20-22%.
Infosys maintained a stable employee base with a marginal net addition, focusing on upskilling and strategic hiring while balancing costs through wage discipline and efficiency gains.