Infosys Q1 rev. up 3.8% YoY to $4.94 bln, revises FY26 rev. guidance to 1%-3%.

• Infosys Q1 revenue: $4,941m, 3.8% YoY growth • FY26 revenue guidance: 1%-3% • FY26 margin guidance: 20%-22% • Large deal wins: $3.8bn with 55% net new • Operating margin: 20.8% • Free cash flow: $884m, 109.3% of net profit • ROE: 30.4%, up 140 bps

Infosys, a global leader in next-generation digital services and consulting, reported strong financial performance in Q1 2025. The company's revenues grew by 3.8% year-over-year (YoY) and 2.6% sequentially in constant currency, reaching $4,941 million. This performance was driven by a 55% net new contribution from large deal wins, totaling $3.8 billion [1].

Operating margin stood at 20.8%, a 0.3% decline from the previous year but an improvement from the 20.5% reported in Q1 2024. Free cash flow was robust at $884 million, representing 109.3% of net profit. The return on equity (ROE) improved by 140 basis points to 30.4% [1].

Infosys' CEO and MD, Salil Parekh, attributed the growth to the company's enterprise AI capabilities and client consolidation decisions. The company also highlighted its strategic collaborations with various organizations to drive digital transformation and operational efficiency [1].

For the fiscal year 2026 (FY26), Infosys revised its revenue guidance to a range of 1%-3% in constant currency and retained its margin guidance at 20%-22%. The company expects to continue leveraging its AI and digital transformation capabilities to drive growth and enhance shareholder value [1].

References:
[1] https://www.prnewswire.com/news-releases/infosys-industry-leading-sequential-growth-of-2-6-in-cc-driven-by-differentiated-value-proposition-in-enterprise-ai-302511920.html