Infosys raises FY26 revenue growth guidance to 3–3.5%

• Infosys revises FY25-26 revenue growth guidance to 3-3.5 percent.
• Company reports strong Q3 with $4.8 billion in large deal wins.
• Infosys completed its largest ever buyback of ₹18,000 crore.

Did our AI summary help?

India’s second-largest IT services company, Infosys Ltd, has revised its revenue growth guidance in the range of 3-3.5 percent for FY2025-26. In October, the Bengaluru-based firm had narrowed its revenue growth guidance for the full year to 2-3 percent.

This came three months after it slashed the guidance to 4.5-5 percent.

The software major, along with other IT companies, has been facing tepid demand on the back of soft discretionary spending.

This revision 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, HCLTech increased its revenue guidance in the range of 4-4.5 percent for the fourth quarter of the financial year 2026 ending March 31, 2026 (Q4FY26).

“Infosys delivered a strong Q3 performance, demonstrating how our differentiated value propositions in enterprise AI, through Infosys Topaz, are consistently driving higher market share. Clients increasingly view Infosys as their AI partner with demonstrated expertise, innovation capabilities and strong delivery credentials. This has helped them unlock business potential and enhanced value realization,” said Salil Parekh, CEO and MD, Infosys. “Central to this journey is our commitment to reskill, transform and empower our dedicated human resource pool to drive success in an AI augmented world,” he added.

"Our performance was broad-based in Q3 with 0.6% sequential revenue growth, 0.2% adjusted operating margin expansion, stellar large deal wins at $4.8 billion and robust adjusted free cash generation at $965 million in a seasonally weak quarter” said Jayesh Sanghrajka, CFO. “In line with our capital allocation policy, we completed the largest ever buyback of Rs 18,000 crore and paid out an interim dividend to shareholders”, he added.