Infosys INFY 2026Q1 Earnings Preview Upside Ahead on Revised Revenue Forecast

Forward-Looking Analysis
Infosys is poised to release its 2026Q1 earnings next week, with an optimistic outlook following its revised revenue forecast for fiscal 2025. Analysts expect Infosys to report revenue of 417.70 billion. The company has historically managed to beat earnings per share (EPS) forecasts, with last quarter's EPS standing at $0.20, surpassing the estimated $0.19. Revenue growth is projected at 4.2% in constant currency, with EPS growth at 8.3%, following normalization of income tax refunds. The company’s return on equity is anticipated to be 29.0%. The consensus among analysts is a "Hold" rating, despite forecasting a decline in stock price. However, Infosys's upward revision of revenue forecasts reflects confidence in its performance, potentially indicating upside potential in the upcoming earnings report.

Historical Performance Review
For 2025Q4, Infosys reported revenue of $4.73 billion, with a net income of $814.00 million. EPS was recorded at $0.20, which exceeded the estimate of $0.19. The gross profit for the quarter was $1.43 billion. Despite revenue slightly missing expectations, the company managed to align earnings per share with forecasts, displaying resilience and effective financial management.

Additional News
Infosys has raised its revenue forecast for FY 2025, indicating strong confidence in its business trajectory. The company’s fiscal 2025 second-quarter results were mixed, with revenue slightly under expectations, but EPS aligning with forecasts. Analysts covering Infosys have issued a consensus "Hold" rating, supported by an average price target of $17.33, suggesting a projected 7.92% decrease. Despite mixed performance, Infosys's strategic revision of revenue growth guidance underscores its adaptability and potential to leverage market opportunities amid recovering banking sectors and increased deposits.

Summary & Outlook
Infosys demonstrates solid financial health with consistent EPS growth and alignment with forecasts, despite minor revenue shortfalls. The strategic upward revision in revenue forecasts for fiscal 2025 highlights growth catalysts such as improved banking sector conditions and effective tax normalization processes. The company's robust return on equity and adaptive financial strategies position it well for future growth. Overall, the outlook remains bullish, driven by revised revenue guidance and historical ability to meet or exceed EPS expectations. Infosys's clear financial strategy and adaptability strengthen its prospects in navigating upcoming market challenges.