- Infosys (INFY, Financial) reported Q1 FY26 revenues of $4.941 billion, marking a 3.8% increase year-on-year and a 2.6% rise sequentially in constant currency.
- The company's large deal wins totaled $3.8 billion, with 55% being new business and a strong free cash flow of $884 million.
- Infosys maintained an operating margin of 20.8% and revised its FY26 revenue growth guidance to 1%-3%.
Infosys (INFY), a leader in next-generation digital services and consulting, announced robust financial results for Q1 FY26, delivering $4.941 billion in revenue. This reflects a 3.8% year-over-year increase and a sequential growth of 2.6% in constant currency. The company continues to showcase resilience amid a challenging market landscape.
The company's large deal wins were valued at $3.8 billion, with an impressive 55% classified as net new business, indicating significant market share gain. The quarterly free cash flow stood at a strong $884 million, translating to a 109.3% conversion rate of net profit, although showing a 19.2% decline year-over-year.
Operating margin for the quarter was recorded at 20.8%, despite a slight decline of 0.3% from the same period last year. Infosys revised its revenue growth guidance for FY26 to 1%-3% in constant currency, while maintaining its operating margin guidance at 20%-22%, reflecting a cautiously optimistic outlook for the remainder of the fiscal year.
In strategic developments, Infosys expanded its enterprise AI capabilities and reinforced client consolidation with several key partnerships. Notable collaborations announced in Q1 included agreements with major global clients such as Select Portfolio Servicing, AIB, E.ON, and DNB Bank ASA, highlighting Infosys' strategic focus on digital transformation and AI initiatives.
Looking forward, Infosys remains well-positioned to leverage its AI-driven solutions and strategic collaborations to drive future growth. The firm is optimistic about its ability to navigate the evolving global economic landscape while continuing to offer innovative services to its extensive client base worldwide.
