Infosys Limited has informed the Exchange regarding 'Earnings Call Transcript'.
INFY · price
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Awaiting price reaction for this filing.
Infosys reported a strong start to FY26 with constant currency revenue growth of 2.6% sequentially and 3.8% year-on-year, including 40 bps from acquisitions. Large deal wins stood at $3.8 billion across 28 deals, with 55% net new and over $1 billion from vendor consolidation including a mega banking deal. Operating margin came in at 20.8%, down 20 bps sequentially due to wage hike, variable pay and currency headwinds, partly offset by Project Maximus-led pricing gains. Free cash flow was $884 million (109% of net profit) and headcount was broadly flat at 323,788. Management raised the lower end of FY26 revenue guidance from 0-3% to 1-3% in constant currency, citing solid deal momentum, while keeping the margin band unchanged at 20-22%. Growth is being driven by enterprise AI (300 agents deployed) and client consolidation wins, with softness flagged in Manufacturing, Retail and Logistics.
The upward revision of the lower-end revenue band signals management confidence in current deal traction, but the unchanged margin range and cautious commentary on tariffs and discretionary spending cap near-term upside. For shareholders, the stock may see a measured reaction: strong execution on AI and large deals is positive, while macro uncertainty and margin headwinds from wage costs and large deal ramp-ups limit a sharp re-rating.