Infosys Raises FY26 Revenue Guidance, Reports Strong Q3 Performance with $4.8B Large Deal Wins & $2.02B Share Buyback
INFY sits 17% above its 52-week low of $15.815.
Summary
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.
Key Events · Earnings and Guidance · INFY
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Q3 Revenue Growth
Infosys reported Q3 revenues of $5.099 billion, with 0.6% sequential and 1.7% year-on-year constant currency growth.
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Adjusted Operating Margin Expansion
The adjusted operating margin reached 21.2%, increasing 0.2% sequentially, demonstrating strong operational performance.
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FY26 Revenue Guidance Raised
The company revised its full-year FY26 revenue growth guidance upwards to 3.0%-3.5% in constant currency.
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Robust Large Deal Wins
Infosys secured $4.8 billion in large deal total contract value (TCV) during the quarter, with 57% being net new.
Analysis · INFY · Technology
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.
At the time of this filing, INFY was trading at $18.44 on NYSE in the Technology sector, with a market capitalization of approximately $76.8B. The 52-week trading range was $15.82 to $30.00. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.