Infosys (INFY) Q3 25/26 (Media) earnings summary

Executive summary

• Q3 revenue reached $5,099 million, up 1.7% year-over-year and 0.6% sequentially in constant currency, with large deal TCV at $4.8 billion (57% net new) across 26 deals.

• Major $1.6 billion NHS UK deal expands healthcare sector presence, leveraging AI to improve operations and patient care.

• AI adoption is strong, with 90% of top 200 clients engaged and 4,600 AI projects underway; over 28 million lines of code generated using AI.

• Adjusted operating margin rose to 21.2%, with robust adjusted free cash flow of $965 million (112.8% of adjusted net profit).

• Headcount increased by 5,043, reflecting ongoing business expansion.

Financial highlights

• Q3 reported IFRS operating margin was 18.4%; adjusted margin at 21.2%.

• Q3 reported basic EPS was $0.18; adjusted basic EPS at $0.21.

• For the nine months ended Dec 31, 2025, revenue grew 2.8% YoY in constant currency; reported operating margin at 20.0%, adjusted at 21.0%.

• Adjusted free cash flow for nine months was $2,950 million, 117.8% of adjusted net profit.

• Labour Code changes resulted in a one-time impact of INR 1,289 crore; ongoing annual impact estimated at 15 basis points.

Outlook and guidance

• FY revenue growth guidance revised upward to 3%-3.5% in constant currency, reflecting strong deal execution and pipeline.

• Operating margin guidance for the year remains at 20%-22%.

• Positive demand outlook in financial services, energy, utilities, and manufacturing; retail remains mixed but with a growing pipeline.