Infosys revenue rises 3.8% in Q1, raises FY26 forecast

BENGALURU: Infosys delivered a resilient performance in a challenging environment, outperforming other tier-1 players and raising the lower end of its guidance. The company reported a 3.8% year-on-year revenue growth in constant currency for the June quarter, along with a sequential growth of 2.6%.

Its operating margin stood at 20.8%, slightly lower than the 21% recorded in the previous quarter, primarily due to wage hikes and higher compensation payouts. Infosys added just 210 employees during the quarter, bringing its headcount to 323,788.

"We had a strong start to the financial year. Growth was broad-based across our five large industry groups and geographies," said Infosys CEO & MD Salil Parekh. "We're seeing good demand for AI agents. We have built 300 agents across business, operations and IT areas and they are now deployed within our clients. Horizontal and vertical agents are helping our clients drive faster decisions, improve customer experience and improve operational efficiency."

Based on the Q1 performance and current outlook, Infy revised its growth guidance for FY26, raising the lower end from 0% to 1%, setting the range at 1% to 3% in constant currency terms. The company, however, retained its operating margin guidance at 20-22%. Among verticals, manufacturing showed the highest year-on-year growth at 12.2% in constant currency terms, followed by energy, utilities, resources & services at 6.4%, and financial services at 5.6%.


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