Archive · 23 Jul 2025
Infosys Q1 FY26: Moderate growth, profit dips, amid uncertainty
Infosys, a big tech company, said its earnings went up a bit, but not as much as people hoped.
They're making less money than before, and they are expecting growth to slow down.
Even though they got some big deals, it's still a little uncertain because the economy is not doing great.
They have to deal with rising costs, including salaries.
Although the company is hiring, the IT industry faces lots of challenges.
Some other IT companies are winning more deals than Infosys.
All these big companies are hoping things will get better soon.
Infosys reported 3.8% YoY and 2.6% QoQ revenue growth in constant currency.
Profit after tax declined 1.6% sequentially but rose 8.6% YoY.
Infosys lowered its full-year revenue growth guidance to 1-3% in constant currency.
The company's operating margin stood at 20.8% for the quarter, with pressures from wage hikes and currency fluctuations.
Infosys saw strong deal wins, including a total contract value (TCV) of $3.8 billion for the quarter.
- Who
- Infosys, an IT services company, reported its earnings, affecting investors and the company's employees.
- What
- Infosys reported its Q1 financial results, showing moderate revenue growth and a decline in profit.
- When
- The results were for Q1 FY26, with the reports published on July 23, 2025.
- Where
- Infosys operates globally, with the main markets being the US and Europe.
- Why
- The report provides insight into the company's financial health, growth prospects, and the challenges it faces amid macroeconomic uncertainty.
Optimistic outlook
Cautious perspective
Revenue Growth
Optimistic outlook
Infosys management presented an optimistic picture in their earnings calls.
Cautious perspective
Analysts noted that the recovery did not appear strong.
- Revenue Growth (QoQ)
- 2.6% (Constant Currency)
- Revenue Growth (YoY)
- 3.8% (Constant Currency)
- Profit After Tax (YoY)
- 8.6%
- Operating Margin
- 20.8%
- Full-Year Revenue Growth Guidance
- 1-3% (Constant Currency)
- Large Deal TCV
- $3.8 billion
- Attrition
- 14.4%
