Infosys posted a 2% YoY dip in its Q3FY26 net profit at Rs 6,654 crore, compared with Rs 6,806 crore in the same quarter last year. However, revenue from operations rose 9% YoY to Rs 45,479 crore. In dollar terms, the company reported revenue of USD 5,099 million, marking a 0.6% sequential increase and a 1.7% rise in constant currency terms, slightly ahead of consensus estimates.
According to Nomura, Infosys delivered a revenue beat in Q3FY26, although it witnessed a modest miss on margins. The adjusted EBIT margin stood at 21.2%, up 20 basis points quarter-on-quarter, but 10 bps below consensus.
Margins benefited from tailwinds, including improved realisations from Project Maximus and favourable currency movements, although these were offset by furloughs and increased variable payouts. Nomura expects EBIT margins to remain stable at around 21% for the full year FY26, within the guided band of 20–22%.
A key highlight for the quarter was Infosys raising its revenue growth guidance for FY26 from the earlier 2–3% range to 3–3.5% in constant currency terms.
Nomura highlighted that this revised guidance assumes varying macro scenarios, with the lower end reflecting continued uncertainty and the upper end factoring in some macro recovery.
The large deal total contract value for the quarter stood at USD 4.85 billion, marking a 94% YoY jump, with net new wins comprising 57% of that figure.Infosys expects revenue growth acceleration in verticals such as BFSI and Energy, Utilities, Resources and Services (EURS), particularly by FY27E. The management also expressed confidence in tapping opportunities across AI services, including AI-led engineering, agents for operations, legacy modernisation, and AI trust services.
Nomura projects less than 1% change in Infosys’ FY27–28F EPS and expects the company to post 4.7% YoY revenue growth in FY26 (including ~$65 million from acquisitions).
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