Infosys Q4 FY26: Profit up 28%, FY27 guide hits ADRs

What drove the market reaction

Infosys’ American Depository Receipts (ADRs) fell sharply in pre-market trading on April 23 after the company issued a cautious revenue growth outlook for FY27. The ADRs were down about 5.5% at $12.75 around 8:05 EDT, according to the reported trading update. The move came even as Infosys reported Q4 FY26 revenue that was ahead of analyst expectations. Investors appeared to focus on the near-term demand environment implied by management’s guidance rather than the quarter’s beat.

FY27 revenue growth guidance: the key datapoint

Infosys guided for FY27 revenue growth of 1.5% to 3.5%. The guidance was reported to be below broker estimates of 2% to 4% for the year. The company’s range suggests a more cautious demand environment in the near term, even as it continues to position its portfolio around artificial intelligence-led opportunities. The FY27 outlook is being watched closely because it sets the tone for deal conversion and discretionary spending across global IT services.

Q4 FY26 revenue: above estimates

For the quarter ended March 31, Infosys reported revenue of ₹46,402 crore, up 13.4%. This exceeded analysts’ average estimate of ₹46,030 crore, based on LSEG-compiled data cited in the report. The company said the quarter was aided by a pickup in demand from its banking, energy, and communication segments. Infosys had earlier signalled a “good outlook” in banking and energy for the fiscal year that started in April, linked to AI-led demand.

Q4 FY26 profit jumps and margins expand

Infosys reported Q4 FY26 net profit of ₹8,501 crore, up 27.8%. At the operating level, earnings before interest and tax (EBIT) rose 16.6% quarter-on-quarter to ₹9,743 crore. EBIT margin expanded to 21% from 18.4% in the previous quarter, indicating better operating efficiency during the period. The margin move stands out because profitability and utilisation are key investor variables during uneven demand cycles.

Deal flow: large bookings lower sequentially

Large order bookings, defined as deals over $10 million, stood at $1.2 billion in the quarter. That compared with $1.8 billion in the previous quarter and $1.6 billion in the year-ago period. The sequential decline is relevant for investors because large-deal conversion can influence revenue visibility in subsequent quarters. Still, the year-on-year improvement signals that sizeable wins continued, even if the pace moderated versus the prior quarter.

Management commentary: AI positioning and FY26 context

CEO and MD Salil Parekh said Infosys delivered a “resilient performance” in FY26, with growth of 3.1% and “strong large deal wins” of $14.9 billion. He attributed this to the company’s enterprise AI value proposition and market share gains in large transformation opportunities. Parekh also highlighted the company’s “AI services strategy across six areas,” alongside ecosystem AI partnerships, as part of how clients are seeking value from AI. The company referenced its “AI First value framework” and “Topaz Fabric” as elements of its approach.

Dividend announcement

Infosys announced a dividend of ₹25 for shareholders alongside the quarterly results update. For many investors, the dividend adds to the total return picture, particularly when growth visibility is uncertain. The announcement was, however, not enough to offset the market’s immediate focus on the FY27 growth range.

Stock moves in the US and India

In the US, Infosys ADRs were trading nearly 5.5% lower pre-market at $12.75, as reported. In India, Infosys shares closed nearly 3% lower at ₹1,231.8 on April 23. The stock was also reported to be down 24.4% so far this year, underscoring that guidance and demand commentary have been central drivers for IT services valuations.

Workforce and hiring plans in focus

Separately, the company has outlined sizable fresher hiring plans linked to its AI pivot. Infosys plans to hire 20,000 college graduates in FY27 (April 1, 2026 to March 31, 2027), with CEO Salil Parekh quoted as saying it is already in the plan. The report also said Infosys hired about 18,000 graduates in the first nine months of the current financial year and expected to reach 20,000 hires by the end of FY26. On workforce metrics, the total employee count rose by 5,043 sequentially to 337,034 in the December quarter, and voluntary attrition was reported at 12.3% in Q3.

Key numbers at a glance

What investors will watch next

The company’s Q4 and full-year FY26 results for the year ended March 31, 2026 were scheduled to be announced on April 23, 2026 at 3:45 PM IST, followed by a press conference at 4:30 PM IST and an earnings call at 5:30 PM IST (scheduled for 60 minutes). With FY27 growth guidance already setting a cautious tone, investors are likely to focus on deal conversion commentary, segment trends in financial services and energy, and the sustainability of the quarter’s margin improvement. Any additional detail on the demand environment and the pace of AI-led deal ramp-ups will be central to how the market frames the FY27 range.