The Bengaluru-based company has upped its lower end of revenue growth guidance, which is pegged at 1-3% in constant currency for FY26.
“Our performance in Q1 demonstrates the strength of our enterprise AI capabilities, the success in client consolidation decisions, and the dedication of our over 300,000 employees,” said Salil Parekh, CEO and MD, Infosys.
Revenues in constant currency (CC) terms grew by 3.8% YoY and by 2.6% QoQ in the first quarter. The company had won deals worth $3.8 billion in the said period, of which 55% were net new.
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“Our large deal wins reflect our distinct competitive positioning and deep client relationships,” Parekh said.
Gross profit for the reporting period increased to Rs 13,055 crore as against Rs 12,138 crore in the same period of last year.
Operating margin for the April-June quarter stood at 20.8%, which is a decline of 0.3% YoY and decline 0.2% QoQ. The company expects the same to hover around 20-22% for the rest of FY26.
Segment wise, the dominant financial services clocked a CC growth of 5.6% YoY, while the manufacturing division rose by a healthy 12.2%. The retail growth was flat at 0.4%, and that of hi-tech business increased by a marginal 1.7%.
The Life Sciences and other divisions de-grew 7.9% and 15.3% in CC terms, respectively.
Infosys said it continues to leverage Project Maximus to make investments in strategic priorities to drive profitable growth and enhance shareholder value.
Free cash flow generation during the first quarter was strong at $884 million. The cash flow conversion was well above 100% for the fifth consecutive quarter.
“The impact of currency volatility was effectively managed through our proactive hedging strategy,” said Jayesh Sanghrajka, CFO, Infosys.
Voluntary attrition during the first quarter rose to 14.4% from 14.1% in the preceding March quarter. Total headcount at the end of June quarter were at 323,788, almost flat compared with Q4 of FY25.
On Wednesday, ahead of the results, Infosys shares closed 0.8% lower at Rs 1,558.9 on NSE.
