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Infosys' Strong Q3 Performance: Growth and Partnerships

Infosys (NSE: INFY), a frontrunner in digital services and consulting, continues to demonstrate robust performance despite the shifting market dynamics. In the third quarter ending December 31, 2025, the company reported a revenue of $5,099 million, marking a 1.7% year-over-year increase and a sequential growth of 0.6% in constant currency. This performance underscores the effectiveness of Infosys's strategic initiatives and its evolving role as a leading partner for clients in their digital journeys.

Financial Highlights

During the quarter, Infosys showcased:

• - YoY Revenue Growth: 1.7% increase compared to the same quarter last year.
• - Sequential Revenue Growth: 0.6% rise in constant currency, indicating consistent client demand and effective execution.
• - Operating Margin: The reported IFRS operating margin was 18.4%, and the adjusted operating margin improved to 21.2%, reflecting operational efficiency.
• - Free Cash Flow: The company generated a strong free cash flow of $915 million, reinforcing its solid financial health and ability to reinvest in strategic initiatives.

Infosys CEO Salil Parekh emphasized that the latest financial results reflect on the company's increasing market share in enterprise AI, especially through its innovative platform, Infosys Topaz. The recognition of Infosys as a reliable AI partner by clients highlights its ability to drive substantial business growth and deliver tangible results.

Key Strategic Developments

This quarter also featured several significant client engagements:
1. Metro Bank: Infosys and Metro Bank expanded their collaboration to enhance financial operations using a suite of Workday solutions. Metro Bank CFO Marc Page highlighted that this partnership is crucial for their digital advancements and operational efficiency.
2. Lufthansa Systems: Infosys established a Global Capability Center for Lufthansa Systems, contributing to their digital transformation with a focus on aviation safety and operational efficiency.
3. NHS: The collaboration with NHS Business Services Authority aims to provide a future-ready workforce management solution, vital for enhancing health services across England and Wales. CEO Michael Brodie mentioned that this initiative aligns with their long-term health plan goals.
4. Barry Callebaut: Infosys is joining forces on a multi-year digital transformation project to enhance customer experience and operational efficiencies, indicating the tech powerhouse's commitment to innovation tailored to specific industries.

Awards and Recognition

Infosys's commitment to fostering a diverse and inclusive work environment also shone through in recent awards. The company was recognized for its efforts in promoting LGBTQIA+ inclusion and was acknowledged as one of the most inclusive organizations for women in tech by Wequity Award.

Future Guidance

Looking ahead, Infosys has provided a revenue growth forecast for FY26 ranging between 3.0% and 3.5% in constant currency, alongside an operating margin expected between 20% and 22%. This guidance highlights the firm’s confidence in its ongoing strategies and the robust demand for digital transformation solutions.

Conclusion

Infosys's impressive Q3 results not only highlight its financial strength but also underscore its strategic direction in the digital realm. With a strong commitment to innovation, operational efficiency, and partnership building, Infosys is poised to navigate the future of digital transformation with unmatched expertise and agility. Clients can expect continued value delivery as the company leverages its AI-first approach and expands its global service capabilities.