Infosys Q1 results: From PAT, deal TCV to guidance— 5 key highlights from IT major's June quarter scorecard

Infosys Q1 results: India's second-largest IT company, Infosys, reported a 9 per cent year-on-year (YoY) rise in its consolidated profit to ₹6,921 crore for Q1FY26 on Wednesday, July 23.

Revenue for the quarter saw an increase of 7.5 per cent YoY to ₹42,279 crore.

“Q1 performance is a clear reflection of our unwavering focus on multiple fronts, resulting in strong growth at 2.6 per cent QoQ, resilient margins at 20.8 per cent and EPS increase of 8.6 per cent YoY. We continue to leverage Project Maximus to make investments in strategic priorities to drive profitable growth and enhance shareholder value”, said Jayesh Sanghrajka, CFO, Infosys.

“Cash flow conversion was well above 100 per cent for the fifth consecutive quarter. The impact of currency volatility was effectively managed through our proactive hedging strategy," Sanghrajka said.

Infosys Q1 results 2026: Key highlights

Let's take a look at key takeaways of Infosys Q1 earnings:

1. PAT, revenue, and operating profit

The company's net profit increased 8.7 per cent YoY, but declined 1.6 per cent QoQ to ₹6,921 crore, while revenue rose 7.5 per cent YoY and 3.3 per cent QoQ to ₹42,279 crore.

Revenues in constant currency (CC) terms rose by 3.8 per cent YoY and 2.6 per cent QoQ to $4,941 million.

Operating profit rose 6.2 per cent YoY and 2.7 per cent QoQ to ₹8,803 crore. However, operating margin declined 0.3 per cent YoY and 0.2 per cent QoQ to 20.8 per cent.

The revenue of the manufacturing segment rose by 12.2 per cent YoY in CC terms, followed by a 6.4 per cent YoY rise in the "energy, utilities, resources and services" segment, and a 5.6 per cent YoY rise in the financial services segment.

The communication segment's revenue saw a decent 4 per cent YoY growth, while the "Hi-Tech" segment's revenue grew by 1.7 per cent YoY in CC terms.

On the other hand, the "life sciences" segment's revenue declined 7.9 per cent YoY, and the "others" segment saw revenue fall by 15.3 per cent YoY in CC.

Among the key geographies, revenue from North America inched up by 0.4 per cent YoY in CC. Europe saw a healthy growth of 12.3 per cent YoY.

Revenue from the Indian market declined 1 per cent YoY in CC.

2. Deal TCV

The total contract value (TCV) of large deal wins stood at $3.8 billion, with 55 per cent net new. The total number of active clients decreased to 1,861 by June 30, 2025, from 1,867 YoY and 1,869 QoQ.

"Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 3,00,000 employees. Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships”, said Salil Parekh, CEO and MD, Infosys.

3. Guidance for FY26

Infosys revised its revenue guidance but maintained its margin guidance.

It revised its revenue growth expectations to 1-3 per cent in constant currency in FY26, up from earlier guidance of 0 to 3 per cent. It expects its operating margin to grow 20-22 per cent.

4. Headcount and attrition

Last twelve month (LTM) IT services voluntary attrition stood at 14.4 per cent from 12.7 per cent YoY and 14.1 per cent QoQ. The number of total employees increased to 3,23,788 from 3,15,332 YoY and 3,23,578 QoQ.

5. Key deal wins

Among the key deal wins during the quarter were:

(i) The extension of its strategic collaboration with Select Portfolio Servicing, Inc.

(ii) Infosys extended its strategic collaboration with AIB to accelerate its digital transformation initiatives.

(iii) Infosys announced a strategic collaboration with E.ON to enable AI-powered digital workplace transformation across Europe.

(iv) Infosys announced the expansion of its strategic collaboration with DNB Bank ASA (DNB) to accelerate the bank’s digital transformation.

(v) Infosys announced a strategic collaboration with Yorkshire Building Society, one of the largest member-owned financial institutions in the UK, to accelerate its digital transformation.

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