Infosys (INFY) Q4 25/26 earnings summary

Executive summary

• FY 2026 revenue grew 3.1% in constant currency to ₹178,650 crore, with Q4 revenue up 4.1% year-over-year in constant currency.

• Large deal wins reached $14.9 billion for the year, up 24% year-over-year, with $3.2 billion in Q4 and 55% net new wins.

• Net profit for FY 2026 was ₹29,474 crore, a 10.2% increase year-over-year, and basic EPS rose 11% to ₹71.58.

• AI services, strategic partnerships with leading AI and cloud providers, and digital transformation are driving client engagement.

• FY 2027 revenue growth guidance is 1.5%-3.5% in constant currency, with operating margin guidance of 20%-22%.

Financial highlights

• FY 2026 revenues surpassed $20 billion (₹178,650 crore), growing 3.1% in constant currency, within upgraded guidance.

• Q4 FY26 revenue was ₹46,402 crore, up 13.4% year-over-year; net profit for Q4 was ₹8,509 crore, up 20.9% year-over-year.

• Adjusted operating margin was stable at 21% for the year; Q4 margin at 20.9%.

• Reported EPS in INR grew 23.8% YOY in Q4 and 11% for FY 2026; adjusted EPS grew 13.9% in Q4 and 12.1% for the year.

• Free cash flow for FY26 was ₹33,097 crore (INR 33.5 billion), with FCF conversion at 112.3% of net profit.

• ROE stood at 31.6%-34.7%; consolidated cash and investments at $4.5 billion (₹43,075 crore) after returning over $4 billion (₹37,500 crore) to shareholders.

Outlook and guidance

• FY 2027 revenue growth guidance is 1.5%-3.5% in constant currency, with H1 expected to be stronger than H2.

• Operating margin guidance for FY 2027 is 20%-22%, factoring in wage hikes, productivity pass-throughs, and AI investments.

• Effective tax rate for FY 2027 expected at 29%-30%.

• Guidance includes Seterus acquisition but excludes Versent JV and Optimum Healthcare acquisitions.