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Infosys Q1 Earnings Match Estimates, Revenues Increase Y/Y
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Key Takeaways
INFY's Q1 revenues of $4.94B rose 4.8% year over year, beating the consensus by 2.1%.
Segment gains were led by Manufacturing, Financial Services, and Energy & Utilities.
Operating income rose 3.4% year over year, with a margin contraction of 30 basis points to 20.8%.
Infosys (INFY - Free Report) reported first-quarter fiscal 2026 results, wherein earnings matched the Zacks Consensus Estimate and revenues surpassed the same. For the fiscal first quarter, the company reported earnings of 19 cents per share, in line with the consensus estimate. The bottom line increased 5.6% year over year.
In the trailing four quarters, INFY’s earnings beat the Zacks Consensus Estimate once and matched thrice, with an average surprise of 1.32%.
Infosys’ fiscal first-quarter revenues increased 4.8% year over year to $4.94 billion from the year-ago quarter’s revenues of $4.71 billion. Key strategic initiatives, market positioning, remarkable growth across segments and unique digital offerings were the company's main drivers of the top line. The top line beat the Zacks Consensus Estimate of $4.84 billion by 2.1%.
Revenues across North America and Europe recorded a year-over-year increase of 0.5% and 16.2%, respectively, on a reported basis. Revenues across India registered a decline of 3.1% while revenues across the Rest of the World remained flat year over year, on a reported basis. On a constant currency (cc) basis, North America and Europe increased 0.4% and 12.3%, respectively. On a cc basis, India declined 1%, while the Rest of the World registered growth of 0.4%.
Segment-wise, revenues from Manufacturing increased 14.72% year over year to $795 million, Financial Services revenues grew 6.23% year over year to $1.38 billion and Energy, Utilities, Resources & Services sales increased 7.19% year over year to $671 million. Communication sales grew 4.75% year over year to $596 million, and Hi-Tech division sales increased 2.12% year over year to $385 million.
In the first quarter of fiscal 2026, the company’s Retail segment revenues grew 1.38% year over year to $660 million. Life Sciences revenues declined 6.41% year over year to $321 million. The Others business unit’s revenues decreased 15.19% year over year to $134 million.
Infosys added 93 clients in the fiscal first quarter. The company reported that its clients, worth more than $100 million, now add up to 41, up from 40 in the year-ago quarter and 39 in the previous quarter.
Gross profits increased 4.8% year over year to approximately $1.53 billion. The gross margin remained flat on a year-over-year basis at 30.9%. The company’s operating income increased 3.4% year over year to $ 1.03 billion. Meanwhile, the operating margin contracted 30 bps to 20.8% year over year.
INFY’s Balance Sheet and Cash Flow Details
Infosys ended the fiscal first quarter with consolidated cash and investments of $5.27 billion, down from $5.56 billion recorded in the previous quarter. During the fiscal first quarter, the company generated a free cash flow of $884 million.
Infosys Initiates Fiscal 2026 Guidance
Infosys projects fiscal 2026 revenues to grow 1-3% on a cc basis. Moreover, it expects a fiscal 2026 operating margin in the range of 20-22%. The Zacks Consensus Estimate for fiscal 2026 revenues and earnings is currently pegged at $19.77 billion and 79 cents per share, respectively.
INFY’s Zacks Rank and Stocks to Consider
Currently, Infosys carries a Zacks Rank #3 (Hold).
ACI Worldwide shares have lost 11.5% year to date. The Zacks Consensus Estimate for ACI Worldwide’s full-year 2025 earnings is pegged at $2.84 per share, up by a penny over the past 30 days, implying growth of 7.58% from the year-ago quarter’s reported figure.
Affirm shares have lost 7.8% year to date. The Zacks Consensus Estimate for Affirm’s full-year fiscal 2025 earnings is pegged at 3 cents per share, unchanged over the past 60 days, indicating year-over-year growth of 101.8%.
Amphenol shares have gained 45.1% year to date. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $2.69 per share in the past seven days, indicating year-over-year growth of 42.33%.
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Infosys Q1 Earnings Match Estimates, Revenues Increase Y/Y
Key Takeaways
Infosys (INFY - Free Report) reported first-quarter fiscal 2026 results, wherein earnings matched the Zacks Consensus Estimate and revenues surpassed the same. For the fiscal first quarter, the company reported earnings of 19 cents per share, in line with the consensus estimate. The bottom line increased 5.6% year over year.
In the trailing four quarters, INFY’s earnings beat the Zacks Consensus Estimate once and matched thrice, with an average surprise of 1.32%.
Infosys’ fiscal first-quarter revenues increased 4.8% year over year to $4.94 billion from the year-ago quarter’s revenues of $4.71 billion. Key strategic initiatives, market positioning, remarkable growth across segments and unique digital offerings were the company's main drivers of the top line. The top line beat the Zacks Consensus Estimate of $4.84 billion by 2.1%.
Infosys Limited Price, Consensus and EPS Surprise
Infosys Limited. price-consensus-eps-surprise-chart | Infosys Limited Quote
Infosys’ Q1 Details
Revenues across North America and Europe recorded a year-over-year increase of 0.5% and 16.2%, respectively, on a reported basis. Revenues across India registered a decline of 3.1% while revenues across the Rest of the World remained flat year over year, on a reported basis. On a constant currency (cc) basis, North America and Europe increased 0.4% and 12.3%, respectively. On a cc basis, India declined 1%, while the Rest of the World registered growth of 0.4%.
Segment-wise, revenues from Manufacturing increased 14.72% year over year to $795 million, Financial Services revenues grew 6.23% year over year to $1.38 billion and Energy, Utilities, Resources & Services sales increased 7.19% year over year to $671 million. Communication sales grew 4.75% year over year to $596 million, and Hi-Tech division sales increased 2.12% year over year to $385 million.
In the first quarter of fiscal 2026, the company’s Retail segment revenues grew 1.38% year over year to $660 million. Life Sciences revenues declined 6.41% year over year to $321 million. The Others business unit’s revenues decreased 15.19% year over year to $134 million.
Infosys added 93 clients in the fiscal first quarter. The company reported that its clients, worth more than $100 million, now add up to 41, up from 40 in the year-ago quarter and 39 in the previous quarter.
Gross profits increased 4.8% year over year to approximately $1.53 billion. The gross margin remained flat on a year-over-year basis at 30.9%. The company’s operating income increased 3.4% year over year to $ 1.03 billion. Meanwhile, the operating margin contracted 30 bps to 20.8% year over year.
INFY’s Balance Sheet and Cash Flow Details
Infosys ended the fiscal first quarter with consolidated cash and investments of $5.27 billion, down from $5.56 billion recorded in the previous quarter. During the fiscal first quarter, the company generated a free cash flow of $884 million.
Infosys Initiates Fiscal 2026 Guidance
Infosys projects fiscal 2026 revenues to grow 1-3% on a cc basis. Moreover, it expects a fiscal 2026 operating margin in the range of 20-22%. The Zacks Consensus Estimate for fiscal 2026 revenues and earnings is currently pegged at $19.77 billion and 79 cents per share, respectively.
INFY’s Zacks Rank and Stocks to Consider
Currently, Infosys carries a Zacks Rank #3 (Hold).
ACI Worldwide (ACIW - Free Report) , Affirm (AFRM - Free Report) Amphenol (APH - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. ACIW, AFRM and APH sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACI Worldwide shares have lost 11.5% year to date. The Zacks Consensus Estimate for ACI Worldwide’s full-year 2025 earnings is pegged at $2.84 per share, up by a penny over the past 30 days, implying growth of 7.58% from the year-ago quarter’s reported figure.
Affirm shares have lost 7.8% year to date. The Zacks Consensus Estimate for Affirm’s full-year fiscal 2025 earnings is pegged at 3 cents per share, unchanged over the past 60 days, indicating year-over-year growth of 101.8%.
Amphenol shares have gained 45.1% year to date. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $2.69 per share in the past seven days, indicating year-over-year growth of 42.33%.