Infosys Q1 results: Net profit jumps 9% to ₹6,921 crore

Infosys Ltd reported a 9% year-on-year increase in net profit at ₹6,921 crore for the quarter ended June 30, 2025. Revenue of India’s second-largest IT services major jumped 7.5% to ₹42,279 crore.

The Bengaluru-based IT firm raised its revenue growth guidance in constant currency to 1-3% for FY26 from 0-3% earlier. Infosys held its operating margin guidance for the ongoing financial year at 20%-22%.

Operating margin for the first quarter fell 0.3% year-on-year to 20.8%.

"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,” said Salil Parekh, CEO and MD. “Our large deal wins of $3.8 billion reflect our distinct competitive positioning and deep client relationships,” he added.

Infosys said the total contract value (TCV) of large deal wins was $3.8 billion, with 55% net new.

Among business segments, manufacturing saw the highest constant currency revenue growth at 14.8% year-on-year, followed by energy, utilities resources and services at 7.2%, and financial services at 6.3%. The communication industry clocked a revenue growth of 4.7% while the retail segment grew flat at 1.5%. Life sciences revenue declined 6.6%.

In terms of geography, Europe posted a 16.2% year-on-year revenue growth in constant currency, while North America, which accounts for over half the total revenues, remained largely flat at 0.5%. India revenues de-grew 3.1% for the first quarter.

“Q1 performance is a clear reflection of our unwavering focus on multiple fronts resulting in strong growth at 2.6% QoQ, resilient margins at 20.8% and EPS increase of 8.6% 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% for the fifth consecutive quarter. The impact of currency volatility was effectively managed through our proactive hedging strategy,” Sanghrajka added.

The company reported free cash flow of ₹7,533 crore and held cash and investments of ₹45,204 crore at the end of the quarter. Infosys’ voluntary attrition rate rose to 14.4% in Q1 FY26 from 12.7% in Q1 FY25.

Infosys said the U.S. Department of Justice (DOJ) is conducting an investigation regarding how the company classified certain H-18 visa-recipient employees working for one of its clients in immigration documents filed with certain U.S. government authorities.

"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," it said.