Infosys Q1FY26 net profit rises 8.7% YoY to ₹6,921 cr
Bengaluru: Infosys reported a consolidated net profit of ₹6,921 crore for the quarter ended June 30, 2025, marking an 8.7% year-on-year increase and exceeding analyst estimates, Moneycontrol reported.
Revenue for the first quarter of FY26 rose 7.5% to ₹42,279 crore.
According to the report, the results outperformed a Bloomberg poll of brokerages, which had projected net profit at ₹6,778 crore and revenue at ₹41,724 crore.
Ahead of the earnings announcement, Infosys shares closed 0.8% lower at ₹1,558.9 on the NSE after trading in the green for most of Wednesday’s session, said the report.
Guidance and financial performance
Infosys revised its FY26 constant currency revenue growth guidance to 1–3%, from 0–3% earlier, while maintaining its operating margin outlook at 20–22%.
Operating profit for the quarter rose 6.2% to ₹8,803 crore, and operating margin stood at 20.8%, slightly below 21.1% reported a year ago. Earnings per share increased 8.6% to ₹16.70.
Free cash flow declined 17.7% year-on-year to ₹7,533 crore but represented 108.8% of net profit.
The company ended the quarter with cash and investments totalling ₹45,204 crore.
Deal wins and business momentum
Large deal signings totalled $3.8 billion in the quarter, with 55% being net new. CEO and MD Salil Parekh attributed the performance to the strength of Infosys’ enterprise AI offerings, successful client consolidation efforts, and the contribution of the company’s over 300,000-strong workforce.
“Our Q1 performance reflects the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees,” Parekh said.
CFO Jayesh Sanghrajka highlighted the quarter-on-quarter growth and resilient margins. “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,” he said.
Segment and regional performance
Among verticals, manufacturing led growth with a 14.8% year-on-year rise in constant currency terms, followed by energy, utilities and services (7.2%) and financial services (6.3%). Life sciences revenue fell by 6.6%.
Regionally, Europe posted a strong 16.2% YoY growth, while North America remained largely flat with a 0.5% increase.
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