Infosys Limited’s June quarter profits beat estimates, having projected an 8.7 per cent rise in net profit, according to a company statement released on Wednesday.
The consolidated net profit of ₹6,921 crore in April-June – the first quarter of 2025-26 fiscal year – compared with ₹6,368 crore earnings in the same period a year back, shows that the company narrowed its full-year revenue forecast to 1 per cent after stronger-than-expected earnings growth.
Revenue from operations at ₹42,279 crore was 7.53 per cent higher year-on-year, and 3.3 per cent quarter-on-quarter, on the back of strong performance in AI and deal wins.
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The net profit, however, fell 1.5 per cent sequentially when compared with the January-March quarter.
“Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees. Our large deal wins of USD 3.8 billion reflect our distinct competitive positioning and deep client relationships,” Infosys CEO and MD Salil Parekh said.
Noting a strong start to the financial year, Parekh said the main drivers of their growth were leadership in enterprise AI and a continued success in clients selecting them for consolidations.
“We are seeing good demand for AI agents,” he said.
Encouraged by its June quarter performance, the company has raised the lower-end of its full-year constant currency revenue growth guidance to 1-3 per cent (it was earlier 0-3 per cent), with margin guidance retained at 20-22 per cent.
The total headcount rose marginally by 210 employees during the course of the quarter, bringing the workforce to 323,788 level – an increase of 2.6 per cent year-on-year. It also plans to induct at least 20,000 freshers this fiscal year, as per a previous announcement.
Meanwhile, financial services remained the company’s largest sector, contributing about 27.9 per cent of total revenue in Q1 FY26, followed by manufacturing at 16.1 per cent and retail at 13.4 per cent.
Geographically, North America accounted for 56.5 per cent of quarterly revenue, down from 58.9 per cent in the corresponding period of the previous fiscal, while Europe increased its share to 31.5 per cent, up from 28.4 per cent in the Q1 FY25.
Infosys CFO, Jayesh Sanghrajka, said that Europe has been strong footing for the company for past many quarters.
“That’s on the back of the investment that we made a few years back in Europe. We had identified Europe as a geography to invest into and all of that is working well across sectors....but still, US remains the largest geography for us,” Sanghrajka said.
The Large Deal TCV (or total contract value) stood at USD 3.8 billion.
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