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Infosys Reports Outstanding Q1 Growth

Infosys Limited, a leader in digital services and consulting, has announced remarkable results for the first quarter of the fiscal year 2026. Their revenues surged to $4,941 million, reflecting a 3.8% year-on-year growth, while sequential growth stood at 2.6% in constant currency (CC). These results highlight the company’s robust business model and commitment to leveraging technology for enhanced performance.

Salil Parekh, CEO and Managing Director of Infosys, expressed his satisfaction with the company's quarterly performance. He indicated that the success in their revenue growth can be attributed to their enterprise AI capabilities, which have allowed them to maintain a competitive advantage in the tech industry. “Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees,” he stated.

Financial Highlights

Sequential Growth: 2.6% (QoQ)
Year-on-Year Growth: 3.8% (YoY)
Operating Margin: 20.8%
Free Cash Flow: $884 million (109.3% of net profit)
Total Contract Value (TCV) of large deal wins: $3.8 billion, with 55% being net new business.
Basic Earnings Per Share (EPS): $0.20, representing an increase of 5.8% YoY.

Infosys is effectively navigating the challenges posed by currency volatility through a proactive hedging strategy. The constant improvement in their cash flow conversion demonstrates their strength in operational efficacy and financial management.

Strategic Collaborations

In the quarter, Infosys secured several strategic partnerships, enhancing their operational capabilities and market reach:
1. Select Portfolio Servicing, Inc.: Extended collaboration to improve operational efficiency via hybrid cloud solutions.
2. Allied Irish Banks (AIB): Focus on transitioning towards a more modernized technology and data infrastructure.
3. E.ON: A partnership promoting AI-powered digital workplace transformation across Europe.
4. DNB Bank ASA: Collaboration aimed at utilizing AI and machine learning for advanced customer interactions and services.
5. Yorkshire Building Society: Assisting in their digital transformation strategy to enhance member experiences and operational efficiency.

These partnerships signify the trust given to Infosys as a critical player in technology transformation. Clients appreciate the AI-driven solutions and innovations that Infosys brings to their operations, facilitating an agile response to constantly changing market demands.

Looking Ahead: FY26 Guidance

Infosys has set its revenue growth guidance for FY26 at 1%-3% in constant currency, while maintaining an operating margin goal of 20%-22%. This cautious optimism reflects their commitment to navigate a competitive landscape while investing in strategic priorities for sustained growth.

Jayesh Sanghrajka, CFO, noted, “Q1 performance is a clear reflection of our unwavering focus on multiple fronts resulting in strong growth at 2.6% QoQ, resilient margins at 20.8% and EPS increase of 8.6% YoY.” This shows that Infosys is not only focused on growth but also on creating value for stakeholders through efficiency and performance improvements.

Awards and Recognition

Infosys's achievements have not gone unnoticed; the company has received numerous accolades that highlight its status in the industry:

• - Recognized as a Top 100 most valuable brand globally by Kantar BrandZ.
• - Awarded multiple honors in Investor Relations at the 2025 Asia Executive Team Survey.
• - Acknowledged as a Great Place to Work for the period of 2025-2026 in various countries.

This recognition showcases Infosys as a preferred employer while being committed to corporate governance and sustainability.

Conclusion

The results for Infosys’s Q1 2025 performance illustrate a robust business trajectory, underpinned by strategic initiatives in AI, strong cash flow, and significant client collaborations. As Infosys moves forward with its growth strategy, the focus remains on innovation, resilience, and delivering value to clients and shareholders alike. The company is steadily positioning itself at the forefront of digital transformation in the ever-evolving tech landscape.

For more updates on Infosys's latest developments and solutions, you can visit Infosys.