Infosys Q1 results LIVE: Guidance cut likely for the IT major - Here's what brokerages expect?

Infosys Q1 results 2026 Highlights : India's second-largest IT services company by market capitalisation, Infosys, on Thursday reported a 12.3% year-on-year (YoY) rise in consolidated net profit to ₹ 7,769 crore for the April-June quarter (Q1FY27), compared with ₹ 6,921 crore in the year-ago period. However, profit declined 8.6% sequentially from ₹ 8,501 crore in the March quarter.

Revenue from operations rose 14% YoY and 3.9% quarter-on-quarter (QoQ) to ₹ 48,211 crore. In constant currency (CC) terms, revenue grew 2.4% YoY and 1% QoQ. EBIT increased 15.4% YoY and 4.3% QoQ to ₹ 10,163 crore, while the EBIT margin stood at 21.1%, up 0.3 percentage points YoY and 0.1 percentage points QoQ. Basic earnings per share (EPS) came in at ₹ 19.19, up 14.9% YoY.

The company also revised its FY27 constant currency revenue growth guidance to 1.5%-3%, lowering the upper end from the earlier 1.5%-3.5% range, while retaining its operating margin guidance at 20%-22% for the fiscal year.

Alongside its quarterly earnings, Infosys announced the appointment of Ashiss Kumar Dash as CEO-designate, effective July 23, 2026. He will take over as the company's Chief Executive Officer and Managing Director from April 1, 2027, for a five-year term ending March 31, 2032.

Dash said he was honoured by the board's confidence and thanked outgoing CEO Salil Parekh for his mentorship, guidance and the opportunities for growth over the years.

"Technology is entering a new era, with AI fundamentally reshaping how businesses operate and create value. Infosys begins this next phase from a position of enormous strength, with a clearly articulated AI strategy, exceptional talent, deep client relationships and values that have earned the trust of customers globally," he said.

“Our resilient margins of 21.1% and consistent strong cash generation reflect the strength of our business model, disciplined execution and continued focus on operational excellence in a challenging business environment”, said Jayesh Sanghrajka, CFO, Infosys.

“We are accelerating investments in AI, talent, and platforms to drive future growth and remain committed to improving productivity, expanding operating leverage and maintaining the financial flexibility needed to capitalise on emerging opportunities while delivering sustainable shareholder value,” Sanghrajka said.

“The board is delighted to appoint Dash as CEO designate. Our industry is entering a period of considerable change. The board was clear that our next CEO needed to combine the ability to drive bold transformation with the judgment to preserve the values and customer trust that have always distinguished Infosys. It gives me great pleasure that we have an internal leader as our next CEO," said Nandan Nilekani, Chairman of the Board, Infosys.

"Salil has been instrumental in the turnaround of the company, establishing its leadership in the digital era, and laying the foundation for a strong and differentiated AI strategy. He will continue to lead the company until 31 March 2027, and work closely with Dash to ensure a seamless leadership transition," said Nilekani.

Infosys CEO and MD Salil Parekh said the company's AI strategy is translating into business gains, with growing AI-led revenues and strong client demand reflected in large deal wins.

"AI momentum is now rapidly converting into revenue, which demonstrates how Infosys' differentiated enterprise AI value proposition is translating into consistent market share gains. Strong large deal wins, powered by Infosys Topaz, reinforce client confidence in our ability to be the strategic partner of choice for AI transformation driving tangible business value. With strategic partnerships established with all leading AI companies, we are well positioned to help clients navigate their enterprise AI journey," Parekh said

Large order bookings, or deals over $30 million, stood at $3.6 billion during the quarter, compared with $3.2 billion in the previous quarter and $3.8 billion in the year-ago period.

The company bagged deals from Sterling Bank of Asia, semiconductor maker GlobalFoundries , Malaysia-based hospital chain IHH Healthcare.

AI brought in about 8.2% of the Total Revenue for the June quarter.

Dollar revenue rose to $5,082 million in the June quarter from $5,040 million in the previous quarter, while constant currency (CC) revenue grew 1% quarter-on-quarter, compared with a 1.3% decline in the March quarter.

Infosys has narrowed its FY27 revenue growth guidance to 1.5%, 3.0% in constant currency terms, trimming the upper end from its previous projection of 1.5%, 3.5%. Concurrently, the company retained its operating margin guidance at 20%, 22% for the full fiscal year.

Infosys ADR falls as much as 4.85% post Q1 results, new CEO announcement.

EBIT rose 4.3% quarter-on-quarter to ₹ 10,163 crore from ₹ 9,743 crore, while the EBIT margin expanded 9 basis points to 21.08% from 20.99% in the previous quarter.

Outgoing Infosys MD and CEO Salil Parekh said it had been an honour to lead the company over the past eight years, during which Infosys doubled its revenue from $10 billion to over $20 billion, strengthened its position in digital transformation and laid out a distinct AI transformation strategy. He also expressed confidence in CEO-designate Ashiss Kumar Dash's leadership and said he looked forward to ensuring a smooth transition.

"We have established Infosys as a leader in digital transformation and have put in place a distinctive strategy for AI transformation. Having worked closely with Dash over many years, I have seen first-hand his integrity, customer focus and ability to lead through change. He brings a deep understanding of our clients, our business and our people, together with the vision and capability to lead Infosys through its next phase of transformation. I look forward to working closely with him over the coming months to ensure a smooth and successful transition," Parekh said.

Infosys CEO-designate Ashiss Kumar Dash said he was honoured by the board's confidence and thanked outgoing CEO Salil Parekh for his mentorship, guidance and the opportunities for growth over the years. He also said he looked forward to working with Parekh to ensure a seamless transition.

"Technology is entering a new era, with AI fundamentally reshaping how businesses operate and create value. Infosys begins this next phase from a position of enormous strength, with a clearly articulated AI strategy, exceptional talent, deep client relationships and values that have earned the trust of customers globally. My commitment is to build on those strengths while accelerating innovation, expanding our capabilities and helping our clients succeed in an increasingly AI-driven world. Together with the outstanding leadership team, all my colleagues, customers and partners, I look forward to shaping the next chapter of Infosys' journey and creating enduring value for all our stakeholders," Dash said.

The company has appointed Ashiss Kumar Dash as CEO-designate, effective July 23, 2026. He is proposed to take over as Chief Executive Officer and Managing Director from April 1, 2027, for a five-year term ending March 31, 2032.

Meanwhile, its revenue rose 14% to ₹ 48,211 crore in the June quarter from ₹ 42,279 crore in the year-ago period. On a QoQ basis, revenue was up 4% as against ₹ 46,402 crore in the previous quarter.

IT major Infosys posted its results for the quarter ended June 2026 (Q1FY27). It posted a consolidated net profit of ₹ 7,769 crore, an increase of 12.2% from ₹ 6,921 crore in the same quarter last year. Sequentially, it fell 8.6% from ₹ 8,501 crore in the March quarter.

Foreign brokerage Nomura expects Infosys to report a net profit of ₹ 7,679.7 crore for the June quarter, up 11% year-on-year from ₹ 6,921 crore. Revenue is projected to rise 13.7% to ₹ 48,086 crore, compared with ₹ 42,279 crore in the year-ago period.

Nomura expects revenue to grow 1.5% quarter-on-quarter in constant currency terms, including 80 basis points of inorganic growth in a seasonally strong quarter. The brokerage also expects lower pass-through revenues on a year-on-year basis, while discretionary demand in the financial services segment is likely to improve modestly.

Shares of Infosys closed almost flat at ₹ 1051.80, up 0.05% ahead of the results announcement today on BSE.

The IT stock fell 3.4% in 1 week but rose 1.5% in 1 month. Moreover, it lost 16% in 3 months, 37.4% in 6 months, and around 34% in the last 1 year.

Infosys' FY27 revenue growth guidance is expected to be the biggest talking point when the IT major announces its June quarter results, with brokerages divided over the company's next move amid macroeconomic uncertainty and acquisition-led growth.

Motilal Oswal expects Infosys to trim the upper end of its FY27 constant currency revenue growth guidance to 1.5-3% from 1.5-3.5%, citing a cautious demand environment.

BNP Paribas, on the other hand, expects the company to revise its guidance to 2-4% after incorporating the Optimum Healthcare IT acquisition while maintaining its operating margin guidance at 20-22%.

Elara Securities also sees a higher probability of Infosys lowering the upper end of its guidance range, reflecting persistent macro headwinds and subdued discretionary spending. Overall, management's commentary on demand trends and the impact of recent acquisitions will be closely watched for any revision to the FY27 outlook.

At 15:03 pm, the stock was trading 0.75% lower at ₹ 1044.55 per share on BSE

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