Infosys Q4 results FY26: Profit up 21%, FY27 guide

The headline numbers investors tracked

Infosys reported its Q4 FY26 results after market hours on April 23, 2026, with profit and margins coming in slightly ahead of street expectations cited in market estimates. Consolidated net profit for the March quarter stood at ₹8,501 crore, while revenue from operations was ₹46,402 crore. The company reported EBIT of ₹9,743 crore and an EBIT margin of 21%. The quarter also brought a final dividend announcement of ₹25 per equity share, with June 10 set as the record date. Alongside the print, management commentary stayed focused on demand visibility, deal momentum, and how client spending is evolving amid macro uncertainty. Investor attention also centred on the FY27 outlook, with the company guiding for modest constant-currency growth and stable margins.

Q4 FY26 performance versus last quarter and last year

On a year-on-year basis, Infosys reported a 20.87% rise in consolidated net profit to ₹8,501 crore compared with ₹7,033 crore in the year-ago quarter. Revenue grew 13.4% year-on-year to ₹46,402 crore versus ₹40,925 crore in Q4 FY25. Sequentially, the company reported a 27.75% rise in profit versus ₹6,654 crore in Q3 FY26, while revenue rose 2% from ₹45,479 crore. EBIT increased 3% quarter-on-quarter from ₹9,479 crore to ₹9,743 crore, and the EBIT margin was reported at 21% compared with 20.9% in the previous quarter. Market estimates referenced alongside the results had pegged Q4 profit at ₹7,398 crore and revenue at ₹45,699 crore. On that comparison, the reported profit and revenue were above those estimates, while margins were close to expectations.

Dividend and shareholder returns

Infosys announced a final dividend of ₹25 per share, and disclosed June 10 as the record date. Separately, the CFO said the proposed final dividend, together with an interim dividend and a recently concluded buyback, takes the total capital returned to shareholders for FY26 to over ₹37,500 crore. The company tied this payout to its capital allocation policy, while reiterating a focus on margins and cash generation. Such disclosures matter for investors because cash returns and buybacks can influence near-term market perception, especially in periods where growth guidance remains cautious.

FY27 guidance: growth and margins

Infosys guided for FY27 revenue growth of 1.5% to 3.5% in constant currency terms. The company also guided for an operating margin of 20% to 22% for FY27. In the preview commentary circulating ahead of results, brokerages had broadly expected constant-currency revenue growth in the 2% to 5% range and margins in the 20% to 22% range. The issued guidance therefore sits within the same broad band for margins but is more measured on growth compared with some street expectations.

Deal wins and what management highlighted

On deal momentum, Infosys disclosed large deal TCV of $1.2 billion in Q4 and $14.9 billion for FY26. The CEO said the company delivered FY26 growth of 3.1% and highlighted strong large deal wins of $14.9 billion, linking this to the firm’s enterprise AI value proposition and market share gains in large transformation opportunities. Management also noted the company signed three mega deals during the year. Separately, the company flagged that multiple deals were signed in Europe and that Europe is seeing healthy traction. These disclosures provided context to the revenue and margin outcome, and to the company’s confidence in its pipeline.

AI focus: growth rate cited, but limited disclosure

Infosys’ AI positioning remained a key discussion point around the result. The CEO did not disclose the latest AI revenue number during the press interaction and reiterated that AI revenue is growing at over 5.5%, as stated earlier at the company’s AI day. The wider sector is watching how quickly AI-led engagements move from pilots to scaled deployments, and what that implies for pricing and productivity. In the same results cycle, Infosys also announced a series of AI and digital collaborations, signalling continued push toward larger enterprise programs.

New collaborations announced alongside results

The company announced a strategic collaboration with Incora to drive faster and more resilient supply chain operations globally using artificial intelligence. Infosys and the University of Nottingham extended their collaboration to strengthen digital infrastructure of the university’s student management system, with a focus on performance and security compliance. Infosys also extended its collaboration with ABN AMRO Bank to support the bank’s ambition of achieving sustainable and profitable growth through 2028. Separately, Infosys announced a strategic collaboration with Anthropic focused on automated workflows, accelerated software delivery, and agentic AI solutions in complex regulated industries. Infosys and Intel expanded their strategic collaboration to help enterprises move from AI pilots to production at scale.

Macro and constant-currency growth commentary

In its conference call updates referenced in market coverage, Infosys indicated constant-currency growth fell due to delays in March and seasonality. The same note also said an acquisition contributed 70 basis points to full-year performance, and that “vile were flattish during the year” as per the source text. The CEO also pointed to war-related changes in the economic environment in some geographies, adding context to client decision-making. The CFO described the Iran war impact on business as a “wait and watch,” indicating uncertainty without quantifying a direct financial hit.

Market context and stock data points cited

Ahead of the results, Infosys shares closed 3.4% lower at ₹1,268 on April 22, and the stock was down over 21% so far in the year, as per the cited market update. Trading data shared in the live coverage showed traded volume of 79.47 lakh shares and traded value of ₹997.90 crore. The same snapshot listed total market capitalisation at ₹5,07,277.37 crore and free-float market cap at ₹4,37,375.02 crore. These figures reflect the context in which the results and guidance were released.

Key numbers at a glance

Why this result matters for the IT pack

Infosys’ print adds to the broader picture of Indian IT services firms navigating uncertainty while attempting to convert AI-led demand into scalable revenue. The company’s Q4 margin at 21% and FY27 margin guidance of 20% to 22% indicate management’s intent to protect profitability even as growth remains modest. At the same time, the company’s disclosures on large deal TCV and Europe traction point to ongoing deal activity in specific pockets. For markets, the immediate takeaway is the combination of profit beat versus estimates and cautious growth guidance, with FY27 commentary likely to remain the main driver of near-term investor positioning.

What to watch next

Investors will track how Infosys executes on the FY27 constant-currency growth band and whether deal conversions sustain quarterly revenue momentum. Further clarity on AI-linked revenue contribution and scaling, beyond the “over 5.5%” growth reference, will remain an area of focus. Management’s monitoring of geopolitical and macro conditions, described as “wait and watch” in parts of the call, will also shape client decision cycles. Any subsequent updates on deal ramp-ups, margin levers, and capital return actions are likely to be key checkpoints after this Q4 FY26 announcement.