Infosys (INFY) Q3 25/26 earnings summary

Executive summary

• Q3 FY 2026 delivered sequential revenue growth of 0.6% and 1.7% year-over-year in constant currency, with reported revenues at $5,099 million and ₹45,479 crore, supported by robust large deal wins totaling $4.8 billion, 57% of which were net new.

• Adjusted operating margin reached 21.2%, with reported margin at 18.4% due to a one-time charge from Indian labor code changes; free cash flow was $915 million, and headcount increased by 5,043.

• Major buyback of 100 million shares for ₹18,000 crore was completed, and an interim dividend of ₹23 per share was paid.

• AI adoption accelerated, with 4,600 AI projects underway and 90% of the top 200 clients engaged in AI initiatives; major partnerships and product launches, such as Topaz Fabric and collaboration with Cognition, were highlighted.

• Two acquisitions were completed: MRE Consulting Ltd. (US) and The Missing Link (Australia).

Financial highlights

• Q3 revenue was $5.1 billion, up 0.6% sequentially and 1.7% year-over-year in constant currency.

• Adjusted operating margin was 21.2%, reported margin including labor code impact was 18.4%.

• Free cash flow (adjusted) was $965 million, over 112% of adjusted net profit; adjusted EPS for nine months grew 11.5% in Rupee terms.

• Consolidated cash and investments stood at $3.9 billion after returning $3 billion to shareholders via buyback and dividend.

• Net profit for Q3 was $747 million (₹6,654 crore), with basic EPS at $0.18 (₹16.17); adjusted EPS at $0.21 (₹18.53).

Outlook and guidance

• FY 2026 revenue growth guidance revised upward to 3%-3.5% in constant currency.

• Operating margin guidance maintained at 20%-22%, excluding labor code adjustment.

• Acceleration expected in Financial Services and Energy, Utilities, Resources, and Services verticals in FY 2027.