Bengaluru, July 23, 2025 – Infosys Ltd., India’s second‑largest IT services exporter, on Wednesday reported a consolidated net profit of ₹6,921 crore for the first quarter of fiscal 2025‑26, up 9% year‑on‑year from ₹6,352 crore in Q1 FY25. Revenue from operations grew by 8% YoY to ₹42,279 crore, ahead of street estimates of ₹41,725 crore The Economic TimesNDTV Profit.
Strong Operational Metrics and Margin Performance
In constant currency terms, revenues expanded 3.8% YoY and 2.6% quarter‑on‑quarter, supported by deal wins across financial services and manufacturing. Reported operating margin contracted marginally by 20 basis points to 20.8%, reflecting higher investments in talent acquisition and ramp‑up costs for large deals The Economic TimesNDTV Profit.
Upgraded Guidance on the Back of New Deal Wins
Buoyed by strong deal flow, including large‑deal TCV of $3.8 billion, Infosys raised the lower end of its FY26 revenue guidance to 1–3% growth in constant currency—up from the prior 0–3% range—while reaffirming its target operating margin band of 20–22% NDTV Profit.
Management Commentary and Outlook
“Client engagements have remained robust despite macro‑economic uncertainties, and our enterprise AI capabilities are driving deeper engagements,” said Salil Parekh, CEO & MD, in the post‑earnings call. He added that the company expects continued momentum in deal pipeline conversion and is focused on margin expansion through automation and operational efficiencies The Economic Times.
Investor Reaction and Near‑Term Prospects
Shares of Infosys were largely flat on the National Stock Exchange following the announcement, as investors balanced the beat on profit estimates against margin pressures and cautious commentary on discretionary spending cuts by clients. Analysts at Anand Rathi Institutional Equities noted that the upgraded guidance underscores a conservative stance and will be keenly watched for further revisions in subsequent quarters.
Overall, Infosys’ Q1 performance underscores its resilience in a challenging global IT services market, with upgraded guidance and strong deal wins positioning it for steady growth through FY26.
