Infosys Q1 FY27: Profit up 12%, FY27 guide 3%

Results announced after market hours

Infosys Ltd. reported its Q1 FY27 (June quarter) results after market hours, with investors focused on revenue growth, margins, large deal wins, guidance, and management commentary. The Bengaluru-based IT services company said revenue in US dollar terms was broadly in line with expectations. The company also announced a key leadership transition plan by naming Ashiss Kumar Dash as CEO Designate. The earnings print arrived at a time when the company cited continued macroeconomic uncertainty while updating its full-year revenue outlook. The stock ended little changed ahead of the announcement at around ₹1,052.9, and it has declined about 35% so far in 2026.

Revenue growth: ₹48,211 crore in the June quarter

For Q1 FY27, Infosys reported revenue from operations of ₹48,211 crore. This was up 14% year-on-year (YoY) and 3.9% quarter-on-quarter (QoQ). The CNBC-TV18 poll estimate cited in the report was ₹48,431 crore, making the reported number marginally below the poll. In the preceding quarter, revenue was reported at ₹46,402 crore, highlighting the sequential growth mentioned by the company. The year-ago quarter revenue was cited at ₹42,279 crore, which underpins the double-digit YoY growth rate.

Dollar and constant currency trends remained steady

In US dollar terms, Infosys reported Q1 revenue of $1.082 billion. This was up 3% YoY and 0.8% QoQ, according to the figures disclosed. The constant currency view showed 2.4% YoY growth and 1% sequential growth, which is often the key lens for investors tracking underlying demand. Another line in the report referenced a CNBC-TV18 poll expectation of $1.127 billion, indicating the reported dollar revenue was broadly in the expected range. The company’s sequential constant currency growth was also reiterated as 1% for the June quarter.

Profitability: EBIT margin at 21.1%

Infosys reported earnings before interest and tax (EBIT) of ₹10,163 crore for the quarter. The company said EBIT was up 4.3% from the March quarter and up 15% from ₹8,803 crore a year earlier. The EBIT margin stood at 21.1%, an expansion of 20 basis points from the previous quarter, and was also cited as 21.1% versus 20.8% in the year-ago quarter and 21% in the March quarter. The margin print matched the 21.1% figure referenced in the CNBC-TV18 poll and sits within the company’s stated operating margin outlook band.

Net profit: up YoY, down sequentially

Consolidated net profit for Q1 FY27 rose 12.2% YoY to ₹7,769 crore, compared with ₹6,921 crore in the year-ago quarter. On a sequential basis, however, net profit fell 8.6% from ₹8,501 crore reported in the previous quarter, as cited in the report. Analysts’ estimate mentioned in the coverage was ₹7,774 crore, putting the reported figure close to expectations. The company’s profit trajectory in the June quarter therefore combined strong YoY growth with a softer sequential comparison.

FY27 guidance: revenue growth range set at 1.5% to 3%

For the full financial year 2027, Infosys said it now expects revenue growth of 1.5% to 3% in constant currency. The report also described this as trimming the upper end of the growth guidance. Alongside the revenue view, Infosys maintained an operating margin outlook of 20% to 22%. The guidance update was framed in the context of continued macroeconomic uncertainty, which has remained a recurring theme across IT services commentary.

Deal wins and AI contribution to topline

Infosys reported large deal wins with total contract value (TCV) of $1.6 billion during the quarter. The company said 61% of this TCV was net new deals, indicating a meaningful contribution from fresh client wins rather than renewals alone. It also disclosed that Artificial Intelligence revenue stood at 8.2% of total revenue in Q1, and separately noted that AI now forms 8.2% of its overall topline. These disclosures were closely tracked as investors assess how quickly AI-led work is becoming material in reported numbers.

Cash flow: $1.955 billion free cash flow

The company reported free cash flow of $1.955 billion, which was also disclosed as ₹9,051 crore. Infosys reported free cash flow conversion at 116.4% of net profit. Cash conversion is a commonly tracked metric for IT services firms because it reflects working-capital movement and the quality of earnings relative to reported profit.

Leadership transition: Ashiss Kumar Dash named CEO Designate

Infosys announced Ashiss Kumar Dash as CEO Designate, outlining a structured succession plan. The company said he is a 30-year veteran and will succeed Salil Parekh as Chief Executive Officer and Managing Director from April 1, 2027, for a five-year term. CEO succession plans at large IT services companies tend to be closely watched because they influence execution continuity, client relationships, and strategic focus. The company’s announcement sets a clear timeline, giving markets visibility well ahead of the transition date.

Headcount update and stock performance context

Infosys said its workforce fell by 532 employees in Q1 FY27, taking total headcount to 328,062 in the June quarter. On the market side, the stock closed near-flat ahead of results, with one cited close at ₹1,052.9 and another at ₹1,051.80. The coverage noted the stock has fallen over 35% year-to-date in 2026, and also cited a 33.5% decline over the last 12 months. These context points matter because they shape how investors interpret a “steady” quarter versus expectations already priced into the stock.

Key numbers at a glance

Why this quarter matters for investors

The June quarter kept margins steady at 21.1% while showing sequential growth in both rupee revenue and constant currency revenue. At the same time, the company narrowed its FY27 revenue growth guidance range to 1.5% to 3% in constant currency, a change that investors typically scrutinise for demand signals. Large deal TCV of $1.6 billion, with 61% net new business, provides a counterpoint suggesting continued deal flow even as the macro environment is described as uncertain. The disclosure that AI contributes 8.2% of revenue adds a measurable data point to a theme that is often discussed qualitatively across the sector.

What to watch next

Investors are likely to monitor how the FY27 guidance band evolves in subsequent quarters, especially the interplay between constant currency growth and margin delivery within the 20% to 22% operating margin outlook. Deal conversion and execution will also be key after reporting $1.6 billion in large deals in Q1. Another focus area will be updates on AI revenue mix beyond the 8.2% level and whether it rises meaningfully over FY27. Finally, the CEO transition plan sets a clear milestone for April 1, 2027, and markets will track how the company manages continuity through the designated period.