Infosys Q4 FY26: ADR Slides 7% as FY27 Guide Misses

ADR sell-off follows results and FY27 outlook

Infosys’ US-listed American Depositary Receipts (ADRs) saw sharp selling after the company reported Q4FY26 results and issued FY27 guidance. The ADRs, listed on the NYSE, fell more than 7% during the session as investors weighed a guidance band that came in below the lower end of some forecasts mentioned in market commentary. The reaction came even as most of Infosys’ earnings verticals were described as broadly in line with estimates.

The sell-off also reflected a wider cautious tone across technology stocks in India and global markets. In the days leading up to Infosys’ results, the Indian IT pack had already been under pressure after HCL Technologies posted a weaker quarter and a subdued outlook. That backdrop raised sensitivity to any sign of slower demand, softer discretionary spending, or a more guarded growth forecast.

How Infosys ADR traded on April 23

After the closing bell on April 23, Infosys ADR ended at $12.94 per piece, down 4.01%. During the trading session, the ADR sank more than 7% to an intraday low of $12.53 per piece. Separate live updates also noted the ADR traded as low as 5.7% lower in pre-market, about an hour before Wall Street opened.

Moves in Infosys’ ADR were not isolated. Other India-linked ADRs on the NYSE also traded lower on April 23, indicating risk-off sentiment that extended beyond a single earnings event. This broader ADR weakness mattered because it framed the Infosys move as part company-specific and part sector-wide positioning.

Other Indian ADRs also decline

Wipro ADR fell 4% on April 23, according to the data cited. Bank ADRs were also lower, with HDFC Bank ADR down 2.3% and ICICI Bank ADR down 1.3%. While the triggers for each name may differ, the clustered declines signalled weaker appetite for India-linked exposure in that session.

For Infosys, the market focus was on the FY27 constant-currency revenue growth band, and whether it accurately captured near-term client decision-making in a volatile environment. Investors also parsed operational metrics like margins, headcount changes, and attrition.

Q4FY26 results: profit jumps, revenue rises

Infosys reported a consolidated net profit of Rs 8,501 crore in Q4FY26. The article noted this represented a 27.8% rise from Rs 6,654 crore in Q3FY26. It also described the March-quarter profit as 20.9% higher than Rs 7,033 crore in Q4FY25.

Revenue increased 2% quarter-on-quarter to Rs 46,402 crore in Q4FY26, compared with Rs 45,479 crore in Q3FY26. On a year-on-year basis, Q4FY26 revenue was up 13.4% from Rs 40,925 crore in Q4FY25.

In dollar terms, Infosys reported Q4 revenue of $1,040 million, with 4.1% year-on-year growth in constant currency. Q4 operating margin was reported at 20.9%.

Key metrics versus estimates

A separate section in the material highlighted how the reported quarter compared with market estimates. Net profit of Rs 8,501 crore was above an estimate of Rs 7,398 crore. Revenue of Rs 46,402 crore was also above an estimate of Rs 45,699 crore.

At the operating level, EBIT was Rs 9,743 crore compared with an estimate of Rs 9,565 crore. EBIT margin was shown at 21% versus an estimate of 20.9%. Despite these beats, the ADRs dropped nearly 6% in one update, underscoring that the market reaction was driven more by forward guidance and sentiment than by the reported quarter alone.

FY26 full-year snapshot: margins, cash flow, large deals

For FY26, Infosys reported revenue of $10,158 million, with 3.1% growth in constant currency. Reported IFRS operating margin was 20.3%, and adjusted operating margin was 21.0%. The company also disclosed EPS growth of 11.0% in rupee terms.

Free cash flow generation was reported at $1,733 million. Infosys also reported total contract value (TCV) of large deal wins at $14.9 billion, with net new of 55%.

CEO and MD Salil Parekh said Infosys delivered a “resilient performance” in FY26, highlighting the $14.9 billion in large deal wins and pointing to traction in its enterprise AI value proposition, AI services strategy, and ecosystem AI partnerships. He also referenced the company’s “AI First” value framework and “Topaz Fabric” as differentiators.

FY27 guidance: growth band and margin range

For FY27, Infosys guided for constant-currency revenue growth of 1.5% to 3.5%. Operating margin guidance was 20% to 25%. The lower end of the revenue growth band was described as a miss versus the lower end of some market expectations, contributing to the negative reaction in ADRs.

Guidance became a central point because the broader IT sector has been dealing with concerns around discretionary spending, demand visibility, and the potential impact of AI on traditional services pricing and delivery models. The material also noted a “steep fall” in constant-currency growth, adding to the cautious tone.

Workforce indicators: attrition ticks up, headcount falls

Infosys reported that its attrition rate rose to 12.6% in Q4FY26 from 12.3% in the preceding December quarter of FY26. The company’s headcount decreased by over 8,000 employees to 3,28,594 in the March quarter, from 3,37,034 in the December quarter.

While the article did not attribute these movements to specific business drivers, investors often track attrition and headcount for signals on hiring intensity, utilisation, and demand conditions. In a quarter where guidance drew scrutiny, these operating details also came into sharper focus.

Dividend announcement

Infosys recommended a final dividend of Rs 25 per equity share, according to the earnings summary included in the material. For many shareholders, dividends remain a key element of total returns, especially in periods when stock prices are volatile.

Sector backdrop: IT selling pressure spills over

The results landed amid a weak IT sector tape. The Nifty IT index was described as down nearly 20% year-to-date, and it also saw sharp single-day moves during the week as investors reacted to earnings and guidance from multiple IT names. Data cited showed the Nifty IT index slumped 4.95% to 30,159.45, while another update noted it tumbled as much as 1,228.35 points, or 3.87%, to a low of 30,500.75.

HCLTech’s weak Q4 results and FY27 guidance were highlighted as a key trigger for the broader sell-off. That context matters for Infosys because it meant the market was primed to penalise any cautious outlook.

Key numbers at a glance

Market impact and what investors are watching

Infosys’ ADR decline showed how guidance can dominate the near-term stock reaction even when quarterly profit and revenue exceed estimates. The risk-off tone in tech, combined with heavy selling across Indian IT names, likely amplified the move.

Going forward, investors are likely to track how Infosys executes against its FY27 constant-currency revenue band of 1.5% to 3.5%, and whether margins stay within the 20% to 25% range guided. Market attention is also likely to remain on demand commentary, large deal conversions, and workforce indicators such as attrition and headcount.

Conclusion

Infosys posted Q4FY26 results that were largely in line with expectations on operating metrics and above estimates on profit and revenue, but its FY27 growth guidance prompted a sharp ADR decline amid a weak IT sentiment backdrop. The next key markers for the stock will be management commentary through FY27, progress on large deal wins, and how the sector’s demand environment evolves as more peers report and update outlooks.