Infosys Q3: Profit slips 2% as revenue climbs, AI-led growth guides FY26
Infosys Q3: Profit slips 2% as revenue climbs, AI-led growth guides FY26
Infosys posts YoY profit dip but revenue rise; labour-code costs and AI-led growth shape FY26 outlook.
Infosys Ltd posted a 2.23% year-on-year decline in consolidated net profit for Q3 FY26, to Rs 6,654 crore, from Rs 6,806 crore a year earlier. Revenue from operations rose 8.89% to Rs 45,479 crore, up from Rs 41,764 crore. The company guided for revenue growth of 3-3.5% in constant currency for FY26 and kept an operating margin outlook of 20-22%. Deal wins in the quarter totalled $4.8 billion, with 57% coming from net new deals. Infosys also flagged an impact of labour codes introduced by the Government of India, noting that adjustments increased gratuity and leave liabilities by Rs 1,289 crore (about $143 million) and were recognized in the consolidated statement of comprehensive income.
The management highlighted strong performance in enterprise AI, underscoring Infosys differentiated capabilities in that space as a driver of growth. Investors have watched the IT giant navigate a high-velocity but competitive outsourcing market, with clients continuing to invest in digital transformations and cloud modernization. Analysts will be watching how the FY26 guidance translates into execution amid regulatory costs and shifting client priorities.
Looking ahead, Infosys reaffirmed its FY26 revenue growth target in constant currency and a margin band of 20-22%, signaling a balance between top-line gains and cost management as it scales AI-enabled offerings and expands its enterprise software services.
