Infosys Q4 Results 2026 Highlights: Profit jumps 21% YoY to ₹8,501 crore; no decision on wage hike yet, says CFO

Jayesh Sanghrajka, CFO, Infosys, said, “No decision on the timing and quantum of hike,” during the press conference.

• Revenues in CC terms grew by 3.1% YoY

• Reported revenues at ₹178,650 crore, growth of 9.6% YoY

• Reported IFRS operating margin at 20.3%; Adjusted operating margin at 21.0%

• Basic EPS at ₹71.58; increase of 11.0% YoY

• FCF at ₹33,097 crore; FCF conversion at 112.3% of net profit

“We delivered a resilient performance in FY 26 with growth of 3.1% with strong large deal wins of $14.9 billion, reflecting the robustness of our enterprise AI value proposition and market share gains in large transformation opportunities. The simplicity and strength of our AI services strategy across six areas is gaining traction in the market further strengthened by strong ecosystem AI partnerships enabling clients to get value from AI”, said Salil Parekh, CEO and MD.

“Our AI First value framework and differentiated Topaz Fabric, position us uniquely to deepen client trust and gain greater share of the market”, he added.

Reported IFRS operating margin was at 20.3%, and adjusted operating margin at 21.0%

Infosys said that it sees revenue growth of 1.5% to (-)3.5%, while the operating margin is seen at 20%-22%.

Large deal TCV stood at $3.2 billion in Q4 FY26, slightly below the last quarter's record $4.8 billion due to seasonal factors. Meanwhile, for full financial year, the figure was $14.9 billion.

The constant currency growth for Q4FY26 was 4.1%, and for full FY was 3.1% on a YoY basis. However, on sequential terms, the figure was lower by 1.3%.

Infosys board recommended a final dividend of ₹25/- per equity share for the financial year ended March 31, 2026. The record date for the purpose of payment of final dividend is June 10, 2026, and the dividend will be paid on June 25, 2026.

Infosys posted Q4 FY26 revenue at ₹46,402 crore, up 13.4% YoY and 2.0% on a QoQ basis.

Infosys posted a net profit growth of 20.9% YoY to ₹8,501 crore as against ₹7,033 crore. Meanwhile, QoQ, the figure was higher by 27.8%. It also beat analyst estimates.

Infosys at its Analyst Day (18th Feb’26) highlighted — AI value creation will be driven by legacy modernisation & data engineering, with a widening execution gap (adoption vs technology) & a shift from “Buy to Build” positioning IT firms as end-to-end orchestrators across platforms, models, & enterprise transformation.

Infosys outlined a $300-400bn AI services opportunity by 2030, with AI already contributing ~5.5% of revenue & scaling rapidly. The Topaz Fabric platform (600+ agents) is central to delivery, enabling customized AIagents & continuous learning via enterprise context integration.

In 4QFY26, deal wins are expected to be healthy, likely in the $3-4 billion TCV range, slightly moderated from 3Q's record $4.8 billion due to seasonal factors, said Antique Broking.

Axis Securities expects revenue growth to increase by 3.2% on a sequential basis, led by the ramp-up of deals and cross-currency tailwinds. The figure could jump 14.6% YoY.

Infosys could post 13.1% YoY and 1.8% QoQ rise to ₹46299.6 crore according to Nuvama's estimates. PAT could rise 7.2% YoY but decline 5.1% QoQ. EBIT margin is likely to remain flat QoQ driven by project Maximus and Fx tailwind, partly offset by visa costs.

The IT sector has sharply underperformed the markets in FY26 owing to a negative narrative built by Gen AI platform companies and tariff-related uncertainty. We continue to believe the IT Services model is here to stay and the Gen AI disruption would only lead to bigger opportunities for them. Post the recent sharp correction, we find the valuation of all stocks highly attractive.

Reverse DCF also indicates to extremely low terminal growth assumption. We remain positive on the sector. We now have ‘BUY’ on all the Top-ten IT services companies. We prefer Coforge, LTIMindtree, TechM, Mphasis, Persistent, Infosys and TCS.

— Nuvama Research

Equirus expects $ sales to dip QoQ by 0.6% while in CC it expects QoQ dip of 1% (vs. implied guidance of +0.3% to dip of 1.6% QoQ in CC terms).

We expect EBITM to improve marginally by 8bps QoQ given tailwinds from Fx, cost/revenue efficiencies through project Maximus and likely lower variable pay qoq to be partly compensated by headwinds from lower billing days, absence of certain one-time gains in 3Q, and visa cost.

1) Revenue guidance for FY27

2) how GenAI deals and revenue are scaling, and how pricing models are changing

3) commentary on the deflationary impact of AI productivity gain-sharing with clients

4) any impact on decision making or the elongation of pipeline-to-TCV conversion as clients implement large-scale AI programs

5) second-order impact from the ongoing Middle East crisis

6) commentary on puts and takes on maintaining or improving margins in FY27

7) impact of insourcing by a large client in BFSI vertical and potential loss in wallet share in a mega deal in manufacturing vertical.

Infosys shares slumped 2.87% ahead of the Q4 results announcement to end at ₹1232 on the BSE today. The IT major is slated to announce its March quarter results shortly.