Moneycontrol PRO
HomeNewsBusinessEarningsInfosys Q1 net profit up 8.7% on-year to Rs 6,921 crore, beats estimate; revenue guidance raised

Infosys Q1 net profit up 8.7% on-year to Rs 6,921 crore, beats estimate; revenue guidance raised

Infosys declares Q1 FY26 financial results. The firm expects revenue growth of 1–3 percent in constant currency terms for FY26, revised up from 0-3 percent earlier.

July 23, 2025 / 22:29 IST
Infosys Q1 FY26 Results
     
     
    26 Aug, 2025 12:21
    Volume
    Todays L/H
    More

    Infosys reported an 8.7 percent year-on-year rise in consolidated net profit to Rs 6,921 crore for the quarter ended June 30, 2025, beating Street expectations. Revenue for the fiscal first quarter grew 7.5 percent to Rs 42,279 crore.

    A Bloomberg poll of brokerages had pegged Infosys’ net profit at Rs 6,778 crore and revenue at Rs 41,724 crore. Ahead of the results announcement, Infosys stock closed 0.8 percent lower at Rs 1,558.9 on the NSE on Wednesday, after trading in the green for most of the session.

    Guidance and earnings details

    Infosys said it expects revenue growth of 1–3 percent in constant currency terms for FY26, revised up from 0-3 percent earlier. The firm maintained its operating margin guidance at 20–22 percent.

    Operating profit rose 6.2 percent to Rs 8,803 crore, while the operating margin stood at 20.8 percent, slightly lower than 21.1 percent a year ago. Earnings per share increased 8.6 percent to Rs 16.70. Free cash flow for the quarter stood at Rs 7,533 crore, down 17.7 percent from the year-ago period, but accounted for 108.8 percent of net profit.

    Deal wins and business details

    The company signed large deals worth $3.8 billion during the quarter, of which 55 percent were net new. CEO and MD Salil Parekh said the performance reflected “the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees”.

    CFO Jayesh Sanghrajka added, “Q1 performance is a clear reflection of our unwavering focus on multiple fronts resulting in strong growth at 2.6 percent QoQ, resilient margins at 20.8 percent and EPS increase of 8.6 percent YoY.”

    Among industry segments, manufacturing saw the strongest constant currency growth at 14.8 percent year-on-year, followed by energy, utilities and services at 7.2 percent, and financial services at 6.3 percent. Life sciences revenue declined 6.6 percent. In terms of geography, Europe posted a 16.2 percent YoY growth in constant currency, while North America remained largely flat at 0.5 percent.

    The company reported free cash flow of Rs 7,533 crore and held cash and investments of Rs 45,204 crore at the end of the quarter.

    Moneycontrol News
    first published: Jul 23, 2025 10:22 pm

    Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

    Subscribe to Tech Newsletters

    • On Saturdays

      Find the best of Al News in one place, specially curated for you every weekend.

    • Daily-Weekdays

      Stay on top of the latest tech trends and biggest startup news.

    Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347