Q1 2026 Infosys Ltd Earnings Call Transcript
Key Points
- Infosys Ltd (INFY) reported a strong start to FY26 with a 2.6% sequential and 3.8% year-on-year revenue growth in constant currency terms.
- The company secured large deals worth $3.8 billion, with 55% being net new, reflecting robust client relationships and delivery capabilities.
- Operating margin was resilient at 20.8%, despite absorbing compensation hikes and increased sales and marketing investments.
- Infosys Ltd (INFY) demonstrated leadership in enterprise AI, with significant demand for AI agents and successful client projects across various industries.
- Free cash flow was strong at $884 million, representing 109% of net profit, marking the fifth consecutive quarter of free cash flow exceeding net profit.
- The company revised its FY26 revenue growth guidance to 1% to 3% in constant currency terms, down from the previous 0% to 3%, indicating cautious outlook due to macroeconomic uncertainties.
- Operating margins saw a slight decline of 20 basis points sequentially, impacted by compensation increases and higher variable pay.
- Attrition increased marginally to 14.4%, which could indicate potential challenges in retaining talent.
- The business environment remains uncertain with clients cautious in discretionary spending, leading to delays in deal-making.
- Infosys Ltd (INFY) faces challenges in certain verticals like manufacturing and communications, with decision-making delays and cost pressures affecting growth.
Ladies and gentlemen, good day, and welcome to Infosys Limited Q1 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Sandeep Mahindroo. Thank you, and over to you, Mr. Mahindroo.
Hello, everyone, and welcome to Infosys earnings call for the first quarter of FY26. Joining us on this call is CEO and MD, Mr. Salil Parekh; CFO, Mr. Jayesh Sanghrajka, and other members of the leadership team. We'll start the call with some remarks on the performance of the company, subsequent to which we'll open up the call for questions.
Please note that anything we say that refers to our outlook for the future is a forward-looking statement, which must be read in conjunction with the risk that the company faces. A complete statement explanation of these risks is available in our filings with the SEC, which can be found on
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