Infosys on Wednesday reported a 2% year-on-year decline in internet revenue for the third quarter at Rs 6,654 crore, in comparison with Rs 6,806 crore within the year-ago interval.
The corporate’s income elevated by 8.89% to Rs 45,479 crore as in comparison with Rs 41,764 crore in Q3FY25.
The corporate additionally reported a particular cost of Rs 1,289 billion in its third quarter revenue because of the authorized impression of the brand new labor legislation. Infosys at the moment expects the recurring impression of this variation to be 15bps per 12 months.
Nevertheless, buoyed by robust market momentum, an accelerating deal pipeline and a rise in AI initiatives, Infosys has revised its FY26 income outlook upwards to a variety of 3-3.5% from the sooner estimate of 2-3%. Nonetheless, the corporate maintained its working margin steering within the 20% to 22% vary.
In a market commentary, Infosys CEO and MD Salil Parekh stated, “We’re seeing a constructive demand outlook throughout the board with a big deal pipeline and powerful momentum in AI adoption throughout segments. We’re seeing a good demand surroundings throughout sectors with good progress in monetary providers, power and utilities sectors.”
Relating to AI progress, he stated the corporate is seeing robust momentum throughout shoppers and industries. “At the moment, we’re working with 90% of our 200 largest shoppers to unlock worth with AI. We’re at the moment engaged on 4,600 AI initiatives. We’re additionally seeing six AI-driven worth swimming pools rising which have the potential to create important incremental alternatives,” Parekh stated.
Purchasers are more and more seeking to Infosys as an AI accomplice with confirmed experience, innovation capabilities and a powerful supply monitor file, which helps them unlock enterprise potential and improve worth realization, he added.
In Q3, the corporate witnessed a TCV (complete contract worth) of $4.8 billion price of enormous offers (26 offers), with internet new enterprise progress of 57%. The corporate additionally reported adjusted free money era of $965 million.
“Our leads to the third quarter had been a broad-based efficiency, together with 0.6% quarter-over-quarter income progress, 0.2% adjusted working margin growth, spectacular giant deal wins of $4.8 billion, and powerful adjusted free money era in a seasonally weak quarter,” Chief Monetary Officer Jayesh Sangrajka stated in a press convention right here Wednesday.
In step with the corporate’s capital allocation coverage, the corporate accomplished its largest-ever share buyback price Rs 18,000 crore through the quarter and paid an interim dividend to shareholders, he stated.
Shubham Rathore, principal analyst at Gartner, stated Infosys’ third-quarter outcomes highlighted operational resilience, with income up 1.7% year-over-year (excluding foreign money) and working margins at a wholesome 18.4%. The $4.8 billion in main deal wins and powerful free money circulate replicate the corporate’s capacity to ship worth in a dynamic market.
“Regardless of macroeconomic headwinds and altering buyer priorities, Infosys’ give attention to innovation in digital, cloud and AI positions us to assist our prospects’ transformation journeys and keep momentum in a quickly evolving expertise panorama,” he added.
Gartner’s newest IT spending forecasts present that international enterprise IT spending will enhance by greater than 10% in 2026, pushed by demand for AI-optimized infrastructure and providers, Rasool stated.
In response to a query concerning the firm’s M&A spotlight, Parekh stated, “Now we have a very good pipeline of potential corporations, we’re in superior discussions, and we’ve got robust steadiness sheet assist. Due to this fact, our M&A method stays the identical.”
On the pricing surroundings, Sangrajka stated a number of pricing fashions, together with performance-based, are evolving out there and everyone seems to be testing new pricing fashions.
Within the third quarter, Infosys added 5,043 staff. The corporate has already employed 18,000 new staff this 12 months and plans to rent 20,000 in FY2026. Attrition charge decreased to 12.3% from 13.7% within the earlier quarter and 14.3% on a 12-month foundation. “The rise in worker numbers reveals that we’re assured about the place the market is and the place the demand is,” Parekh added.
issued – January 14, 2026 8:13pm IST
