Infosys is set to announce its Q1 FY26 results on Wednesday, July 23, 2025, around 3:45 PM Indian Standard Time. Investors and analysts are keenly watching the results for insights into the company's performance, guidance, and key strategic updates. Here's a breakdown of what to expect:
Brokerage Expectations:
- Revenue: Brokerages anticipate Infosys to post revenue between ₹40,925 crore and ₹42,102 crore. Bloomberg estimates suggest a 2% quarter-on-quarter increase to ₹41,724 crore. Nomura projects ₹42,102 crore, a 7.1% year-on-year and 2.9% quarter-on-quarter growth.
- Net Profit: Net profit is expected to be between ₹6,800 crore and ₹7,023 crore for Q1 FY26. JM Financial estimates ₹7,023 crore, a 10.3% year-on-year increase but a 0.1% quarter-on-quarter decrease.
- EBIT Margin: The Earnings Before Interest and Taxes (EBIT) margin is projected to remain stable. Bloomberg estimates it at 20.91%.
- Guidance: Most brokerages anticipate Infosys will narrow or raise the lower end of its full-year revenue growth guidance from the earlier 0–3% band, citing stable macro conditions and deal momentum. Nuvama expects Infosys to revise FY26 revenue guidance to 1–4% year-on-year in constant currency, including a 0.5% inorganic contribution, while maintaining a 20–22% EBIT margin. JM Financial anticipates 1–3% organic revenue growth guidance, increasing to 1.5–3.5% including acquisitions.
Key Updates to Watch Out For:
- Large Deal Wins: Deal momentum is expected to be a key growth driver. Investors will be looking for updates on large deal ramp-ups and the overall deal pipeline. Zee Business reports that Infosys may report large deal wins worth $3 billion.
- BFSI Vertical Outlook: The performance of the Banking, Financial Services, and Insurance (BFSI) segment will be closely monitored. There are signs of recovery in tech spending within this sector, making it a potential growth area for Infosys.
- Margin Levers: Analysts will be watching for commentary on factors affecting margins, including wage hikes, acquisitions, and operational efficiencies. The aim is to understand how Infosys plans to maintain its margin within the guided range of 20–22% for FY26.
- Generative AI Adoption: Infosys's investments in generative AI are emerging as a key long-term growth driver.
- FY26 Guidance Revision: The street will be closely watching for any revision to the FY26 revenue guidance or margin outlook.
Dividend:
Infosys has already declared a final dividend of ₹22 per equity share for the financial year ending March 31, 2025. The record date for determining shareholders eligible for the dividend was May 30, 2025, and the payment date is set for June 30, 2025.
Additional Factors:
- Macroeconomic Environment: The broader sentiment around IT remains cautious due to macroeconomic headwinds from the U.S. and pressure on BFSI clients.
- Acquisitions: Infosys's recent acquisitions, such as MRE Consulting and The Missing Link, are expected to contribute to revenue growth.
- Share Performance: Infosys shares closed 0.6% lower at ₹1,575 on Tuesday. Analysts suggest the stock is showing signs of short-term technical weakness ahead of the results.
Overall, the Q1 results are expected to show steady growth, with revenue likely to increase and margins remaining stable. The key focus will be on Infosys's guidance for the rest of the fiscal year and its strategies for navigating the evolving IT landscape.
