However, the focus is likely to remain less on the reported numbers and more on FY27 guidance, deal momentum, and commentary on discretionary spending amid global macro uncertainty and rising AI-led disruption.
Most brokerages expect a mild sequential decline in revenue, primarily due to fewer billing days and typical Q4 seasonality.
ICICI Securities estimates a marginal -0.2% QoQ constant currency (CC) revenue decline, while Jefferies expects a steeper -1.3% QoQ CC drop. JM Financial and Nuvama also build in a sequential decline of around 0.5–0.8% CC, citing seasonal furloughs and lower working days.
Kotak Equities similarly forecasts around a 1% QoQ decline in revenue, reinforcing the consensus view of a muted quarter on a sequential basis.
Despite this, the full-year FY26 revenue growth is expected to come in at around 3.4% CC, near the upper end of Infosys’ guided range of 3-3.5%.
Margins are expected to remain broadly stable, with offsetting tailwinds and headwinds.ICICI Securities expects EBIT margin to decline by around 60 basis points sequentially to 20.6%, citing pressures from visa costs, fewer billing days, and the absence of one-off gains seen in the previous quarter. Additional impact is expected from labour code-related costs.
On the other hand, Jefferies, JM Financial, and Nuvama expect margins to remain largely flat QoQ, supported by rupee depreciation and benefits from Project Maximus, Infosys’ internal efficiency initiative.
Kotak also expects stable margins, noting that currency tailwinds will likely offset higher operating costs.
Overall, margin performance will be closely watched, especially given the company’s historical guidance band of 20–22%.
Deal pipeline remains strong
Deal momentum continues to be a key positive. Brokerages expect large deal total contract value (TCV) to remain steady in the range of $2.5-3 billion for the quarter. ICICI Securities said that demand remains healthy in verticals such as financial services and energy, resources and utilities, both of which are expected to outperform in FY27.
A stable deal pipeline and consistent bookings will be critical in supporting medium-term growth visibility.
FY27 guidance in focus
The biggest trigger for the stock will be Infosys’ guidance for FY27. Most brokerages expect the company to guide for 2-5% CC revenue growth for FY27, with a margin band of 20-22%. ICICI Securities expects growth guidance of 3-5%, while Jefferies and Nuvama peg it at 2-5%.
Kotak expects similar growth, with slightly lower organic growth estimates when excluding acquisitions.
However, achieving this guidance will require steady quarterly growth momentum, with implied CQGR of around 1-2%, which could be challenging in a volatile demand environment.
Infosys’ positioning in the evolving AI landscape will be a major discussion point. The company has already unveiled an AI-first framework targeting a $300-400 billion opportunity by 2030 and has strengthened partnerships with players such as Anthropic, Cursor, and Intel.
Investors will track how quickly AI-led projects move from proof of concept to production and whether these initiatives can offset potential revenue deflation from automation.
Additionally, commentary on discretionary spending, especially in BFSI, and any impact of geopolitical uncertainties, including the Iran conflict, will be closely monitored.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)