Infosys Q4 FY26 Results: FY27 Guidance at 3.5–5.5%

What Infosys reported on April 23

Infosys announced its Q4 FY26 and full-year results on Thursday, April 23, with markets watching the company’s FY27 guidance, deal pipeline commentary, and positioning on AI-led demand. The company also announced a final dividend of ₹25 and disclosed a strategic pact with OpenAI as part of its AI strategy narrative.

Ahead of the result, brokerages had largely expected a seasonally soft March quarter, driven by fewer billing days and typical end-quarter patterns in the global IT services business. Attention was less on one quarter’s print and more on what management would say about discretionary spending and demand visibility amid global uncertainty.

The event was closely tracked as the earnings season peaked for India’s large-cap IT services players, with several peers having already posted their March quarter numbers.

Schedule: results, press conference, and earnings call

Infosys had disclosed the timeline for the day through an exchange filing. The company said Q4 FY26 results would be declared around 3:45 pm IST on April 23. The leadership team was scheduled to participate in a press conference at 4:30 pm IST, streamed on the Investor Relations section of the Infosys website, with an archive expected after 6:30 pm IST.

Separately, Infosys scheduled a 60-minute conference call with investors and analysts at 5:30 pm IST. The company also shared dial-in details in its communications, including India numbers (+91 22 6280 1168, +91 22 7115 8069), a US toll-free number (1 866 746 2133), and a Singapore number (800 101 2045). Infosys said the webcast would be archived after 7:30 pm IST.

Market moves before and around the announcement

Infosys shares traded lower ahead of the Q4 FY26 result. In one intraday update, the stock was cited at ₹1,257.50 on the NSE, down 0.87%. Other live ticks mentioned the stock around ₹1,250.90 (-1.40%), ₹1,247.50 (-1.66%) and ₹1,254.30 (-1.13%), with a previous close of ₹1,268.60.

The live coverage also reported a sharp fall at one point, stating the stock fell as much as 7.2% to ₹180 before trimming losses to trade around 5.5% lower intraday. Investors were watching whether the company’s forward guidance and commentary could stabilise sentiment after the initial reaction.

Street expectations: seasonal softness, stable margins

The pre-result consensus framed the March quarter as subdued, with sequential revenue softness attributed to seasonal factors and fewer billing days. Brokerages expected margins to remain broadly stable, supported by currency benefits and internal efficiency measures, even as cost pressures persisted.

Based on estimates from seven brokerages cited in the live coverage, Infosys was expected to post around 14% year-on-year revenue growth and nearly 8% growth in profit for the quarter. However, several notes emphasised that demand visibility and the ability to rebuild growth momentum mattered more than near-term quarterly fluctuations.

FY27 guidance: the key trigger for the stock

The dominant theme going into the result was FY27 guidance. Most brokerages tracked in the live preview expected constant-currency revenue growth in the 2–5% band, with operating margins projected in the 20–22% range. ICICI Securities expected 3–5% growth, while Jefferies and Nuvama were cited as estimating 2–5%.

Kotak Equities’ consensus view in the live updates described Infosys as stable, while flagging that growth acceleration depends on execution and demand recovery. JM Financial was cited as highlighting that even if Q4 saw a dip, the bigger issue was demand visibility.

Company preview metrics highlighted in live coverage

The live preview carried a set of consolidated quarter-on-quarter estimates (as expectations going into Q4 FY26). The figures included US dollar revenue expected at $1.989 billion versus $1.099 billion (down 2.2% QoQ), and INR revenue expected at ₹461.35 billion versus ₹454.79 billion (up 1.4% QoQ).

The preview also cited EBIT expected at ₹97.93 billion versus ₹96.44 billion (up 1.6% QoQ), PAT expected at ₹75.18 billion versus ₹66.54 billion (up 13% QoQ), and an EBIT margin near 21% versus 21.21% (flat QoQ, down 2 bps). The watch-list also included expectations that currency tailwinds could aid rupee revenue while bonuses and visa costs could offset some of that benefit.

Q3 FY26 as the most recent reported base

Infosys had previously reported an 8.9% year-on-year rise in consolidated revenue to ₹454.79 billion in Q3 FY26 from ₹417.64 billion in Q3 FY25. Net profit (after non-controlling interests) fell 2.2% year-on-year to ₹66.54 billion in Q3 FY26 from ₹68.06 billion in Q3 FY25.

This Q3 base mattered because it set expectations for Q4 sequencing and the starting point for management’s FY27 commentary. Investors were also tracking how much of the expected Q4 movement would reflect seasonality versus demand trends.

Live earnings update: profit beat, FY27 guidance, dividend, OpenAI pact

A live earnings update stated that Infosys beat Q4 profit estimates with ₹7,710 crore and provided a better-than-expected FY27 revenue guidance of 3.5–5.5%. The same update also reported a ₹25 final dividend and a strategic pact with OpenAI.

With AI strategy described as a key focus area in the preview coverage, the OpenAI partnership was positioned as a notable development alongside the financial print and guidance.

Key numbers and events at a glance

Market impact: what investors were tracking

The market’s immediate reaction, reflected in pre-result weakness and sharp intraday moves reported in live updates, suggested investors were positioning for guidance risk rather than focusing only on Q4 delivery. In the build-up, brokerages had already framed FY27 guidance and deal momentum as the key trigger for the stock.

The preview also identified potential push and pull factors: seasonal weakness in US dollar revenue, currency tailwinds in rupee revenue, and a cost mix that included bonuses and visa costs. Deal wins and AI integration in new deal momentum were flagged as important indicators, alongside any commentary on discretionary spending in a cautious global environment.

Analysis: why this result day mattered for Infosys

Infosys’ result day combined three catalysts that typically move large-cap IT stocks: the quarterly print, the next-year guidance range, and management’s narrative on demand and strategy. The 20–22% margin framing that brokerages expected and the focus on efficiency measures highlighted how investors were weighing resilience in profitability against uncertainty in revenue growth.

AI was another central thread in the live coverage, spanning questions on GenAI’s impact on growth and margins and how AI integration shows up in deal wins. The reported OpenAI pact added a clear, reportable datapoint to that discussion, alongside the FY27 revenue guidance band of 3.5–5.5% and the final dividend decision.

Conclusion

Infosys’ Q4 FY26 announcement on April 23 placed FY27 guidance, demand visibility, and AI execution at the centre of investor focus. The company’s live update carried a Q4 profit beat at ₹7,710 crore, FY27 revenue guidance of 3.5–5.5%, a ₹25 final dividend, and a strategic pact with OpenAI. The next set of details for investors was expected from the scheduled press interaction and the 5:30 pm earnings call.