Infosys Raises FY26 Revenue Guidance, Reports Strong Q3 Performance with $4.8B Large Deal Wins & $2.02B Share Buyback

summarizeSummary

Infosys reported strong Q3 results with increased revenue guidance for FY26, driven by robust large deal wins and strategic AI adoption, alongside completing a substantial share buyback.

check_boxKey Events

• Q3 Revenue Growth

  Infosys reported Q3 revenues of $5.099 billion, with 0.6% sequential and 1.7% year-on-year constant currency growth.

• Adjusted Operating Margin Expansion

  The adjusted operating margin reached 21.2%, increasing 0.2% sequentially, demonstrating strong operational performance.

• FY26 Revenue Guidance Raised

  The company revised its full-year FY26 revenue growth guidance upwards to 3.0%-3.5% in constant currency.

• Robust Large Deal Wins

  Infosys secured $4.8 billion in large deal total contract value (TCV) during the quarter, with 57% being net new.

auto_awesomeAnalysis

Infosys reported strong third-quarter results, exceeding expectations with a sequential constant currency revenue growth of 0.6% and year-on-year growth of 1.7%. The company demonstrated robust operational efficiency with an adjusted operating margin of 21.2%, a 0.2% sequential increase, despite a one-time $143 million impact from new Indian Labour Codes. A significant highlight was the upward revision of its FY26 revenue growth guidance to 3.0%-3.5% in constant currency, signaling management's confidence in future demand. This positive outlook is underpinned by stellar large deal wins totaling $4.8 billion, with 57% being net new, and strong momentum in Financial Services and Energy, Utilities, Resources & Services verticals, which are expected to accelerate in FY27. The company also completed a substantial INR 18,000 crore ($2.02 billion) share buyback, representing a significant return of capital to shareholders. Infosys continues to strategically invest in AI, reporting 4,600 AI projects and identifying six emerging AI-led value pools, positioning itself as a key AI partner for its largest clients.