Infosys Q1 Results 2025
Infosys Q1 Results 2025: Infosys reported an 8.7% year-on-year increase in its Q1 FY26 net profit, reaching ₹6,921 crore—surpassing market expectations. Despite global economic headwinds, the IT giant showed resilience through operational efficiency and strong digital service demand.
Image: The Economics Times
Infosys Q1 FY26 Results: Net Profit Surges, Outlook Remains Steady
Strong Start to FY26
India’s second-largest IT services firm, Infosys, has kicked off FY26 on a high note. The company reported an 8.7% YoY rise in net profit, totaling ₹6,921 crore for the April-June quarter. Revenue for the quarter stood at ₹39,278 crore, reflecting a 4.3% year-on-year increase.
This performance beat analysts’ projections, driven by improved operating margins and a growing demand for digital transformation services. The company’s efforts in optimizing its cost structure and improving offshore delivery contributed to the profit jump.
Digital and AI Demand Drive Growth
Infosys highlighted that its key growth areas remain cloud, AI, and digital services. These segments have seen consistent client investment despite global macroeconomic challenges. CEO Salil Parekh stated, “Our digital and generative AI capabilities are driving strong client engagement across sectors.”
Moreover, Infosys won large deals worth $2.9 billion in Q1, reinforcing its market confidence. The North American and European markets, though cautious, continue to invest in tech innovation and automation.
Operating Margins and Guidance
Operating margins improved to 20.5% this quarter, up from 20% in the same period last year. CFO Nilanjan Roy emphasized disciplined cost control and currency tailwinds as contributors.
For FY26, Infosys maintained its revenue growth guidance at 3-5% in constant currency terms. The company also reaffirmed its operating margin guidance at 20-22%, reflecting cautious optimism amid geopolitical and economic uncertainties.
Employee Metrics and Utilization
Infosys reduced its headcount by about 7,500 employees in Q1, reflecting slower hiring amid ongoing automation and productivity gains. However, utilization rates remained stable, and the company said it would hire based on demand recovery in the second half of the year.
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Market Reaction
Infosys shares reacted positively to the results. The stock rose by nearly 2% in early trading after the announcement. Market analysts noted the company’s resilient margin profile and deal pipeline as key positives, though concerns remain over muted tech spending in Europe.
