Infosys Adds 5,043 Staff in Q3, Lifts FY26 Revenue Guidance

Introduction: A Strong Signal to the Market

Infosys Ltd., a leading name in global technology services, has reported its most significant net headcount addition in nearly three years. In the third quarter of fiscal year 2026, the company added 5,043 employees, pushing its total workforce to 337,034. This hiring surge, the largest in 11 quarters, is a clear indicator of the management's growing confidence in the demand environment. Coupled with an upward revision of its annual revenue guidance and substantial deal wins, the move positions Infosys strongly against industry peers, many of whom have been more cautious with their hiring plans.

Unpacking the Hiring Numbers

The Q3 addition of 5,043 employees builds on a strong previous quarter, where the company onboarded 8,203 individuals. This brings the cumulative net addition over the last six months to 13,246 employees. This trend is particularly noteworthy as it contrasts with reports of workforce reductions at other major IT firms, including competitor Tata Consultancy Services (TCS). Management has directly linked this expansion to better visibility in the market. Furthermore, Infosys has been actively recruiting from campuses, having onboarded approximately 20,000 fresh graduates throughout the year, which has been a key contributor to its workforce growth.

Management Commentary on Demand

According to Infosys's leadership, the decision to expand the workforce is a direct reflection of a positive market outlook. "Headcount increase shows confidence in where the market is at with respect to demand," the company stated. This sentiment was echoed by CEO Salil Parekh, who highlighted that the hiring momentum demonstrates a firm belief in the current and future demand for the company's services. The company also noted that it would provide detailed hiring plans for the next fiscal year, FY27, at the beginning of that period.

Financial Performance and Guidance Upgrade

Alongside the positive hiring news, Infosys announced its Q3 financial results. The company posted a sequential revenue growth of 2.2%, reaching Rs 45,479 crore. However, net profit saw a quarter-on-quarter decline of 9.6% to Rs 6,654 crore. Despite the dip in profit, the underlying business momentum appears strong. This is supported by the company's decision to raise its FY26 constant-currency revenue growth guidance to a range of 3% to 3.5%, up from the earlier projection of 2% to 3%. The EBIT margin guidance was maintained at 20% to 22%, indicating stable profitability expectations.

Robust Deal Pipeline

A key driver of this optimism is the company's performance in securing new business. Infosys reported large deal wins totaling $1.8 billion for the quarter. Critically, 57% of these deals were net new, reinforcing the narrative of an improving demand environment and successful market share capture. This strong deal flow provides a solid foundation for the revised revenue forecast and justifies the increased investment in human capital.

Key Operational Metrics at a Glance

Operational efficiency and talent management remain key focus areas. The company saw a significant improvement in employee retention, with the attrition rate for IT services falling to 12.3% on a last-twelve-months basis, down from 14.3% in the previous quarter. This rate is competitive, standing lower than TCS's 13.5% and HCL Technologies' 12.4%. In terms of workforce diversity, the proportion of women employees remained stable at a healthy 39.5%.

Industry Context and Analysis

Infosys's aggressive hiring strategy sets it apart in an industry that has been navigating global macroeconomic uncertainties. While some competitors have focused on optimizing their existing workforce, Infosys is actively scaling up. This suggests that the company is capturing demand in high-growth areas and is confident in its ability to deploy new talent effectively. The combination of declining attrition and increased fresher intake also points to a healthier talent pipeline, which can help manage costs and bring new skills into the organization. The upward revision in revenue guidance, backed by a strong deal TCV, provides a credible basis for the company's optimistic stance.

Conclusion and Forward Outlook

In summary, Infosys's third-quarter performance for FY26 paints a picture of a company on a firm growth trajectory. The significant increase in headcount, lower attrition, strong deal wins, and an improved revenue outlook collectively signal a positive turn. These developments suggest that Infosys is successfully navigating the market and is well-positioned to capitalize on demand for digital transformation services. Investors and the market will be keenly watching for the company's detailed FY27 hiring plans and its ability to maintain this momentum in the coming quarters.