Infosys: AI Revenues at 8.2% in Q1; Resilient Operating Margin of 21.1%
Strong Large Deal Wins at $3.6 Billion with 61% Net New; Robust Free Cash Flow of $0.96 Billion
FY27 Revenue Guidance Revised to 1.5%-3.0%, Margin guidance Retained at 20%-22%
BENGALURU, India, July 23, 2026 /PRNewswire/ - Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in AI-first business consulting and technology services, delivered $5,082 million in Q1 revenues, year on year growth of 2.4% and sequential growth of 1.0% in constant currency. Operating margin was at 21.1%, sequential increase of 0.2%. EPS growth was 14.9% year on year in rupee terms. TCV of large deal wins was $3.6 billion, with 61% net new.
"AI momentum is now rapidly converting into revenue, which demonstrates how Infosys' differentiated enterprise AI value proposition is translating into consistent market share gains. Strong large deal wins, powered by Infosys Topaz, reinforce client confidence in our ability to be the strategic partner of choice for AI transformation driving tangible business value," said Salil Parekh, CEO and MD. "With strategic partnerships established with all leading AI companies, we are bringing the power of the innovation ecosystem to help clients accelerate operational productivity and unlock growth opportunities. We remain committed to reskilling our employee base across levels and this sustained focus has positioned Infosys as a frontier organization with deep expertise accelerating AI journeys for some of the largest enterprises the world over," he added.
1.0% QoQ
2.4% YoY
CC Growth
21.1%
Operating
Margin
14.9% YoY
EPS Increase
(` terms)
$3.6 Bn
Large Deal TCV
(61% Net New)
$0.96 Bn
Free Cash Flow
(FCF)
8.2%
AI as a % of
Revenue
Guidance for FY27:
Key highlights:
For the quarter ended June 30, 2026
"Our resilient margins of 21.1% and consistent strong cash generation reflect the strength of our business model, disciplined execution and continued focus on operational excellence in a challenging business environment," said Jayesh Sanghrajka, CFO. "We are accelerating investments in AI, talent, and platforms to drive future growth and remain committed to improving productivity, expanding operating leverage and maintaining the financial flexibility needed to capitalize on emerging opportunities while delivering sustainable shareholder value," he added.
Client Wins & Testimonials
Recognitions & Awards
Read more about our Awards & Recognitions here.
About Infosys
Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY) is a global leader in AI first business consulting and technology services. Over 325,000 of our people work to amplify human potential and create the next opportunity for people, businesses, and communities. As navigators of enterprise transformation, we enable businesses in 59 countries to unlock AI value at scale. With over four decades of experience in managing the systems and workings of global enterprises, we accelerate business transformation through our AI-first value framework, deep domain expertise, and our unique ability to orchestrate innovations from our AI-native partner ecosystem. Infosys is recognized as the fastest growing IT services brand globally, committed to being a well-governed, environmentally sustainable partner for our clients where deep talent expertise, in an inclusive workplace, help them navigate their next.
Visit www.infosys.com to see how Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY) can help your enterprise navigate your next.
Safe Harbor
Certain statements in this release, including those concerning our future events, future growth prospects, our future financial or operating performance and our offerings and collaborations, are "forward looking statements" intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on our current expectations, assumptions, estimates and projections about the Company, our industry, economic conditions in the markets in which we operate, and certain other matters. These forward-looking statements are subject to substantial known and unknown risks, uncertainties and other factors, that could cause actual results or outcomes to differ materially from those implied by such forward-looking statements. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, increased competition for talent, our ability to attract and retain personnel, increase in wages, investments to reskill our employees, our ability to effectively implement a hybrid work model, economic uncertainties and geo-political situations, technological disruptions and innovations such as artificial intelligence, the complex and evolving regulatory landscape including immigration regulation changes, particularly in the United States, our Environmental, Social, Governance ("ESG") vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity and capital resources, our corporate actions including acquisitions, cybersecurity matters, the outcome of pending litigation and the US government investigation, and the effect of current and future tariffs. These and additional factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2026. These filings are available at https://www.sec.gov/. In light of these and other uncertainties, you should not conclude that the results or outcomes referred to in any of the forward-looking statements will be achieved. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.
Infosys Limited and Subsidiaries
Extracted from the Condensed Consolidated Balance Sheet under IFRS as at: ( In $ million)
Particulars
June 30, 2026
March 31, 2026
ASSETS
Current assets
Cash and cash equivalents
2,287
2,341
Current investments
837
1,365
Trade receivables
3,569
3,715
Unbilled revenue
1,759
1,633
Other current assets
1,953
1,858
Total current assets
10,405
10,912
Non-current assets
Property, plant and equipment and Right-of-use assets
2,066
2,057
Goodwill and other Intangible assets
2,042
1,576
Non-current investments
924
942
Unbilled revenue
207
183
Other non-current assets
715
776
Total non-current assets
5,954
5,534
Total assets
16,359
16,446
LIABILITIES AND EQUITY
Current liabilities
Trade payables
463
500
Unearned revenue
1,222
1,248
Employee benefit obligations
388
372
Other current liabilities and provisions
3,515
3,396
Total current liabilities
5,588
5,516
Non-current liabilities
Lease liabilities
563
634
Other non-current liabilities
534
456
Total non-current liabilities
1,097
1,090
Total liabilities
6,685
6,606
Total equity attributable to equity holders of the company
9,619
9,786
Non-controlling interests
55
54
Total equity
9,674
9,840
Total liabilities and equity
16,359
16,446
Extracted from the Condensed Consolidated Statement of Comprehensive Income under IFRS for:
(In $ million except per equity share data)
Particulars
3 months ended
June 30, 2026
3 months ended
June 30, 2025
Revenues
5,082
4,941
Cost of sales
3,482
3,416
Gross profit
1,600
1,525
Operating expenses:
Selling and marketing expenses
270
258
Administrative expenses
258
239
Total operating expenses
528
497
Operating profit
1,072
1,028
Other income, net of finance cost
91
110
Profit before income taxes
1,163
1,138
Income tax expense
343
329
Net profit (before non-controlling interests)
820
809
Net profit (after non-controlling interests)
819
809
Basic EPS ($)
0.20
0.20
Diluted EPS ($)
0.20
0.19
NOTES:
IFRS-INR Press Release: https://www.infosys.com/investors/reports-filings/quarterly-results/2026-2027/q1/documents/ifrs-inr-press-release.pdf
Fact sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2026-2027/q1/documents/fact-sheet.pdf
SOURCE Infosys