Infosys Q4 disappoints, guides for 0%-3% revenue growth for FY26

Infosys

India’s second-largest IT services company, Infosys Ltd has guided revenue growth in the range of 0% to 3% for FY2025-26.

In January, the Bengaluru-based firm had narrowed its revenue growth guidance for the full year to 4.5-5 percent. This came three months after it slashed the guidance in October to 3.75-4.5 percent.

The software major, along with other IT companies, has been facing tepid demand on the back of soft discretionary spending. To top it, recent announcements by the US President Donald Trump on the now halted tariffs has adversely affected IT companies.

This is in-line with what the IT major's peers have highlighted so far. While India’s largest IT exporter Tata Consultancy Services doesn’t give guidance, Wipro has guided revenue in the range of -1.5 percent to -3.5 percent for the first quarter of financial year 2026 ending June 30, 2025 (Q1FY26).

"We have built a resilient organisation with sharp focus on client-centricity and responsiveness to the market, thanks to the trust of our clients and dedication of our employees. Our performance for the year has been robust in terms of revenues, expansion in operating margins and highest ever free cash generation”, said Salil Parekh, CEO and MD. “Our depth in AI, cloud and digital and strength in cost efficiency, automation, and consolidation position us well for the needs of our clients”, he added.

"FY25 operating margins expanded by 0.5% which reflects our relentless focus on identifying opportunities for efficiency and executing Project Maximus with discipline, after navigating through multiple headwinds in a challenging macro environment. We delivered the highest ever free cash flows in the history of the company in FY25,” said Jayesh Sanghrajka, CFO. The Board has proposed a final dividend of `22, which along with the interim dividend, is an increase of 13.2% over last year." he added.

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