India’s second largest IT services major Infosys has revised its full year revenue growth guidance for FY26, increasing its lower end to 1-3 percent growth in constant currency (CC).
In the previous quarter, the company had set its growth guidance at 0-3 percent for FY26. As of Q1FY26, Infosys has retained its operating margin guidance at 20-22 percent.
Speaking at the company’s first quarter earnings conference, Salil Parekh, CEO and MD, Infosys said, “We have seen a strong performance in Q1 delivering 2.6 percent QoQ CC growth and also the current outlook based on global discussions is that the economies worldwide are becoming more stable. But, it’s not fully settled. Given that, we have increased our guidance on the lower end. As we progress through the year, we typically narrow the guidance.”
“We have seen very strong work in enterprise AI through agents, more consolidation deals and the economy globally both in Europe and the US are going through changes, we have narrowed the guidance and increased the lower end,” he added.
Infosys reported its first quarter earnings on July 23. Net profit for the quarter grew 8.7 percent year-on-year 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.
The company’s operating margin stood at 20.8 percent, declining by 20 bps sequentially.
The company signed large deals worth $3.8 billion during the quarter, of which 55 percent were net new. 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”.
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