Resilient Performance in a Tough Environment

Infosys has showcased a resilient performance, outperforming its peers in a challenging market scenario. The company reported a 3.8% year-on-year revenue growth in constant currency for the June quarter, alongside a sequential growth of 2.6%.

Financial Highlights and Operational Margin

The operating margin stood at 20.8%, a slight decrease from the previous quarter's 21%, attributed to wage hikes and higher compensation payouts. With the addition of 210 employees, Infosys's total headcount now stands at 323,788.

Leadership's Insight on Growth and AI Demand

"We had a strong start to the financial year. Growth was broad-based across our five large industry groups and geographies," said Infosys CEO & MD Salil Parekh. The company is witnessing significant demand for AI agents, with 300 agents deployed across various business areas to enhance decision-making and operational efficiency.

Revised Growth Guidance for FY26

Based on the Q1 performance, Infosys has revised its FY26 growth guidance, raising the lower end from 0% to 1%, now expecting a growth range of 1% to 3% in constant currency terms. The operating margin guidance remains unchanged at 20-22%.

Sector-wise Performance

Manufacturing led the year-on-year growth at 12.2% in constant currency terms, followed by energy, utilities, resources & services at 6.4%, and financial services at 5.6%.