Infosys Q4 FY26 profit beats estimates; FY27 outlook cautious

Results at a glance

Infosys Ltd reported a stronger-than-expected March-quarter performance, with consolidated net profit rising 27.8% quarter-on-quarter to ₹8,501 crore in Q4 FY26. The profit figure exceeded Street expectations, with a CNBC-TV18 poll of analysts estimating January-March profit at ₹7,670 crore. Revenue from operations came in at ₹46,402 crore, up 2% sequentially and broadly in line with expectations. On a year-on-year basis, the company said net profit rose 20.87% from ₹7,033 crore, while revenue increased 13.38% from ₹40,925 crore. The company also reported a sharp improvement in profitability at the operating level during the quarter.

Profit beat was driven by margins and lower tax

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% in Q4 FY26 from 18.4% in the previous quarter, indicating a meaningful step-up in operating leverage. Profit before tax (PBT) increased 17% sequentially to ₹10,797 crore, with the company pointing to lower tax expenses as a support for bottom-line growth. Basic earnings per share (EPS) rose to ₹21.01, compared with ₹16.17 in the previous quarter. The quarter’s numbers suggest that even with modest sequential revenue growth, profitability improved materially.

Revenue growth stayed modest sequentially

While headline profit growth stood out, revenue momentum remained steady rather than sharp in sequential terms. Infosys reported 2% quarter-on-quarter growth in revenue to ₹46,402 crore, and noted that constant currency growth was slightly lower than the reported figure. The company’s commentary positioned the quarter as one of improved execution and margins, even as demand conditions appeared mixed across markets. Reports also noted that year-on-year revenue growth was supported by business momentum, with life sciences and communication verticals cited as key contributors.

FY27 revenue guidance turns more cautious

Infosys provided a more guarded view on near-term demand in its outlook for FY27. The company guided for revenue growth of 1.5% to 3.5% in constant currency for FY27. This compared with an earlier guidance range of 3% to 3.5%, signalling a lower expected growth trajectory. Separately, Infosys had revised its FY26 revenue growth guidance to 3% to 3.5% in January. The updated FY27 range will likely be closely tracked by investors assessing discretionary spending and decision cycles among large clients.

Large deals: Q4 TCV at $1.2 billion

Infosys reported large deal total contract value (TCV) of $1.2 billion for the March quarter. For the full year, the company said it booked $14.9 billion of large deal TCV. A separate disclosure referenced in reports also indicated that Q3 TCV stood at $1.8 billion. In an earnings statement carried in reports, Infosys said it delivered a “resilient performance” in FY26 with 3.1% growth, supported by large deal wins of $14.9 billion, and linked this to its enterprise AI value proposition and market share gains in large transformation opportunities.

Dividend announced with record and payment dates

Alongside earnings, Infosys announced a final dividend of ₹25 per equity share for FY26. The company said the record date to determine eligible shareholders is June 10, 2026, and the dividend will be paid on June 25, 2026. In another comment cited in reports, the company said the final dividend, along with the interim dividend and a recently concluded buyback, meant over ₹37,500 crore was returned to shareholders for FY26.

Geographic mix: North America share dips, Europe rises

Infosys’ biggest market, North America, was reported to be down 1% in Q4 FY26 in constant currency terms year-on-year, according to details carried in reports. Revenue contribution from the region declined to 55.7% from 57%. Europe’s contribution increased to 32.6% from 31.2%, and was described as up 7.2%. Chief Financial Officer Jayesh Sanghrajka attributed the mix shift to some large deals from the Eurozone over the last couple of quarters.

Full-year FY26 snapshot: profit, revenue, workforce

For FY26, Infosys reported consolidated net profit of ₹29,440 crore, up 10.20% from ₹26,713 crore in FY25. Revenue from operations for the full year stood at ₹1,78,650 crore, up 9.6%. Reports also noted that the company’s total employee count stood at 3,28,594 at the end of Q4 FY26. Another disclosure cited in reports mentioned an adjusted operating margin of 21% and free cash flow of $1.7 billion for FY26.

Key numbers table

Stock reaction and timing

Ahead of the results, Infosys shares fell 2.9% to close at ₹1,231.8 on the NSE, according to one report. Another report said the stock settled 2.04% lower at ₹1,242.60 on the BSE on Thursday. The earnings announcement was made after market hours, which meant market reaction would be reflected in subsequent sessions.

Why the quarter matters

The quarter stands out for the combination of a profit beat and sharp margin expansion, despite only modest sequential revenue growth. The improved EBIT margin to 21% from 18.4% in Q3 FY26 is a key data point because it shows profitability improvement even as revenue growth stayed limited. At the same time, the FY27 constant-currency revenue growth guidance of 1.5% to 3.5% sets a more conservative tone compared with the earlier range of 3% to 3.5%. Deal wins remained meaningful in absolute terms, with $14.9 billion booked for the year, but Q4 large deal TCV at $1.2 billion was lower than the prior quarter’s $1.8 billion figure cited in reports.

What to watch next

Investors will track how Infosys executes against its FY27 guidance range and whether deal signings translate into stronger revenue momentum. The final dividend timeline is also clear, with June 10, 2026 as the record date and June 25, 2026 as the payment date. Updates on regional trends, including North America’s growth performance and Europe’s rising mix, are likely to remain in focus in upcoming quarters.