Infosys outshines IT peers in Q1

Infosys, India’s second largest IT services and consulting firm, posted a revenue of $4.9 billion for the first quarter of FY26. In constant currency terms, this represented a sequential growth of 2.6% and a 3.8% growth year-on-year (YoY). In the large-cap IT space, Infosys stood out, as peers TCS , Wipro , and TechM saw their constant currency revenue decline during the quarter both sequentially as well as on a YoY basis. HCLTech though saw a sequential revenue decline of 0.8% in constant currency terms, it was up 3.7% compared to the first quarter of the last fiscal. Infosys also revised its guidance for the full year from the previously stated range of 0-3% to 1-3%

Salil Parekh, CEO and MD of Infosys, attributed the guidance revision to some stability being seen around tariff and other macroeconomic uncertainties, though not fully settled. “We still see things within our guidance which will give us good traction. For example, we've seen in the consolidation very strong work that we've done on AI with agents and we also see the economy globally both in Europe and the US going through changes. So, keeping that in mind we narrowed the guidance and increased the lower end,” he said.  

CFO Jayesh Sanghrajka attributed a large part of revenue growth to increase in pricing. "Inorganic (revenue contribution) in this quarter has been around 40 basis points within our 2.6% (CC revenue growth) that we reported. And for the full year also, it will be a similar number," the CFO said. In April 2025, Infosys had acquired two companies. One was the US-headquartered MRE Consulting Ltd. (energy and business consulting services company) for ₹306 crore; two, Infosys Singapore acquired Australian company ‘The Missing Link’ (cybersecurity service provider) for ₹505 crore.

While the large deal pipeline at $3.8 billion with 55% new deals was slightly lower compared to $4.1 billion in Q1FY25, the company’s profitability also saw a 20-basis point dip with operating margins in Q1 coming in at 20.8% compared to 21% in the previous quarter. The overall headcount remained flat with the addition of 210 employees. Infosys had earlier stated that in FY26 it expected to hire over 20,000 freshers.

The company has also disclosed that it under investigation form the U.S. Department of Justice (DOJ) regarding how the company classified certain H-1B visa-recipient employees working for one of its clients in immigration documents filed with certain U.S. government authorities. In financial filings to the stock exchanges, the company stated, “The Company is engaged in discussions with the DOJ regarding its ongoing investigation and has commenced its own inquiry regarding the matter. At this stage, the Company is unable to predict the outcome of this matter, including whether such outcome could have a material adverse effect on the Company's business and results of operations.”