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Infosys Surges Past Revenue Forecasts Amidst Global Caution
14 Jan
Summary
- Infosys raised its revenue forecast for FY25-26 to 3-3.5 percent.
- Third-quarter net profit saw a 2.2 percent year-on-year decrease.
- Large deal wins totaled $4.8 billion, significantly bolstering its pipeline.
Infosys has upwardly revised its revenue guidance for the fiscal year 2025-26, projecting growth between 3-3.5 percent, an increase from the previous 2-3 percent forecast. This adjustment comes despite a 2.2 percent year-on-year decline in net profit for the third quarter, which concluded on December 31, 2025. The company reported revenue growth of 8.9 percent year-on-year, largely propelled by its financial services and manufacturing sectors.
The IT services provider secured a total contract value (TCV) of $4.8 billion in large deals during the third quarter, a substantial increase from the $3.3 billion reported in the second quarter. This robust pipeline, particularly from financial services, manufacturing, and retail, supports the raised guidance. However, the company noted that while the upper end of the guidance remains stable, the lower end suggests a potentially challenging global economic environment.
Infosys's performance in Q3 showed broad-based strength with sequential revenue growth and adjusted operating margin expansion. CEO Salil Parekh highlighted the role of enterprise AI, through Infosys Topaz, in driving market share and positioning the company as a key AI partner for clients. The company also completed a significant share buyback of Rs 18,000 crore and distributed an interim dividend.
