Infosys Q4 FY26: $20B Revenue, FY27 Guidance Outlook

Results day: what Infosys reported on April 23, 2026

Infosys announced its March quarter (Q4 FY26) results on April 23, 2026, followed by a management press conference and analyst interaction focused on demand, AI impact, margins, and FY27 guidance. The company reported steady constant-currency (CC) growth for the full year and highlighted a sharp pick-up in large deal signings. Management positioned AI-led work as a key growth driver, while also acknowledging guarded client spending and ongoing focus on cost optimisation.

The update mattered for investors because it combined several moving parts: a stronger deal pipeline, a stable operating margin profile, and a relatively narrow revenue growth guidance band for FY27. Infosys also used the interaction to expand on its AI partnerships and examples of AI deployments that have moved from pilots to measurable operational outcomes.

FY26 growth: constant-currency performance and reported numbers

Infosys said FY26 revenue crossed $10 billion, with CC revenue growth of 3.1% for the full year. For Q4, the company reported CC revenue growth of 4.1% year-on-year, but a sequential CC decline of 1.3%, which it attributed to seasonality and slower decision-making in March.

On a reported basis in India, Infosys posted Q4 net profit of ₹85.01 billion (up 20.8% year-on-year) and revenue of ₹464.02 billion (up 13.4%). For the full year FY26, reported net profit rose 10.20% to ₹294.40 billion, while revenue increased 9.6% to ₹1,786.50 billion.

Management said volumes for FY26 were “flattish”, and that growth was led by better realisation, including impact from Project Maximus, a program focused on lean automation and value-based selling.

Margins: stable at 21% with reinvestment into AI and sales

Infosys reported an adjusted operating margin of 21% for FY26. In Q4, operating margin was 20.9%, down 0.3 percentage points sequentially, with management citing factors including on-site mix and labour code impact.

Executives said benefits from currency and internal efficiency were reinvested into talent, AI investments, and sales and marketing. Infosys also noted lower third-party costs, described as down by 1% as a percentage of revenue, alongside a reduction in on-site mix.

EPS and tax: strong growth rates, wide FY27 tax range

Infosys reported EPS growth of 23.8% year-on-year in Q4 and 11% for the full year in INR terms. It also provided adjusted EPS growth figures: 13.9% for Q4 and 12.1% for FY26 in INR terms, adjusted for income tax orders and labour code impact.

The company said the tax rate for the quarter was lower due to reversal of prior-year tax provisions after favourable tax orders. For FY27, Infosys expects an effective tax rate in the range of 29% to 35%.

Deal wins: $14.9 billion in FY26, net-new mix at 55%

Infosys reported large deal wins of $14.9 billion for FY26, which management described as a 24% increase over the prior year. Large deal total contract value (TCV) for Q4 stood at $1.2 billion, and management said it signed 19 large deals in the quarter.

Across FY26, Infosys said it signed 96 large deals, with a total contract value of about $15.0 billion and 55% of the value coming from net new work. Management also said the large deal pipeline remained strong, with deal wins described as broad-based across verticals.

AI strategy: six focus areas and client examples

Infosys highlighted its AI strategy during an AI Investor Day held a few weeks before the results. The company described a large addressable market for AI services across six areas, including AI strategy and engineering, data processes, legacy modernisation, physical AI, and trust.

On client work, Infosys cited examples involving companies such as Ralph Lauren, Hertz, and BP, positioning these engagements as evidence of enterprise AI value creation. In one set of outcomes shared during the interaction, Infosys reported 95% payment accuracy, 50% faster contract validation, and an 18% improvement in IT operations efficiency.

Partnerships and tooling: Topaz Fabric, CoBolt, and foundation models

Infosys said it has strategic collaborations with foundation model companies such as Anthropic and OpenAI, aimed at supporting software development, legacy modernisation, and agent building. It also highlighted collaborations with major technology companies including Google (including Gemini), Nvidia, Microsoft, AWS, Google Cloud, Intel, and others.

The company said it has deployed over 30,000 developers on GitHub Copilot. Infosys also referenced its AI platforms and tooling, including Topaz Fabric and CoBolt, as part of its delivery approach.

FY27 guidance: 1.5% to 3.5% growth, 20% to 22% margin

Infosys guided for FY27 revenue growth of 1.5% to 3.5% year-on-year in constant currency terms. It also guided for an operating margin range of 20% to 22%.

Management said it expects acceleration in financial services and the energy, utilities and resources services vertical, and reiterated its usual seasonality pattern, stating that it expects H1 to be stronger than H2. The guidance includes the contribution from Stratus, which the company said it closed earlier in the week, but excludes the Worsen JV and Optimum Healthcare acquisitions that were yet to be closed.

Infosys also referenced a 0.75% to 1% reduction in FY27 growth due to lower revenue from a large European manufacturing client, linked to reduced client spend amid a challenging macro environment, and due to Infosys choosing not to pursue a deal that did not meet return expectations.

Cash, capital return, and hiring plans

Infosys said consolidated cash and investments stood at $1.5 billion after returning over $1.0 billion to shareholders in FY26. It reported adjusted free cash flow of $13.5 billion for FY26 and $1.882 billion for Q4, and said adjusted free cash as a percentage of net profit remained above 100% at 106% for FY26 and 111% for Q4.

Under its capital allocation policy, the board proposed a final dividend of ₹25 per share, taking the total dividend to ₹48 per share, which would be an 11.6% increase over the previous year once approved by shareholders. Separately, the company said it plans to onboard 20,000 freshers in FY27, alongside continued focus on AI-driven initiatives and cost optimisation.

Key numbers at a glance

Why the update matters for the IT sector

The FY26 commentary reinforced two themes shaping large-cap Indian IT services: a guarded spending environment that prioritises cost take-out, and a parallel push by enterprises to operationalise AI for productivity, automation, and modernisation. Infosys’ emphasis on net-new mix in large deals and its breadth of partnerships indicates the competitive focus on winning transformation budgets while aligning with fast-evolving AI ecosystems.

At the same time, guidance commentary highlighted that sector performance can still be influenced by client-specific issues, geography and vertical concentration, and decisions to walk away from deals that do not meet return thresholds. That combination of large deal momentum and selective execution will remain central to how investors track the company through FY27.

Conclusion

Infosys closed FY26 with 3.1% constant-currency growth, stable margins, and a stronger large deal tally, while setting FY27 guidance at 1.5% to 3.5% growth with 20% to 22% operating margins. Management framed AI-led services, legacy modernisation, and platform-driven productivity as key opportunity areas, supported by partnerships across major foundation model and cloud ecosystems. The next reference points for markets will be execution against the FY27 guidance, ramp-up of net-new deal wins, and follow-through on AI programs and hiring plans outlined for the year.