Infosys Q1 Net Profit Rises 12% YoY to ₹7,769 Cr; Trims FY27 Revenue Growth Guidance

Infosys reported a 12% year-on-year (YoY) rise in consolidated net profit for the first quarter of FY27, supported by higher revenue growth and stable margins. The company also narrowed the upper end of its FY27 revenue growth guidance while maintaining its operating margin outlook.

The IT services major posted a consolidated net profit of ₹7,769 crore for the quarter ended June 2026, compared with ₹6,921 crore a year earlier. Revenue from operations rose 14% YoY to ₹48,211 crore.

For FY27, Infosys revised its constant currency revenue growth guidance to 1.5%-3%, trimming the upper end of its earlier outlook. It retained its operating margin guidance at 20%-22%.

Margins Improve, Cash Generation Remains Strong

In dollar terms, Infosys reported revenue of $5.08 billion, up 3% YoY and 0.8% quarter-on-quarter (QoQ). Constant currency revenue grew 2.4% YoY and 1% sequentially.

Operating profit increased 15% to ₹10,163 crore, while the operating margin improved to 21.1% from 20.8% a year earlier. Free cash flow stood at ₹9,051 crore ($955 million), with a free cash flow conversion of 116.4% of net profit.

Chief Financial Officer Jayesh Sanghrajka said the company's "resilient margins of 21.1% and consistent strong cash generation reflect the strength of our business model, disciplined execution and continued focus on operational excellence in a challenging business environment." He added that Infosys is accelerating investments in AI, talent and platforms to drive future growth while improving productivity and maintaining financial flexibility.

AI, Large Deals Drive Business Momentum

Infosys said AI-related revenue contributed 8.2% of its total revenue during the quarter. The company also signed large deals worth $3.6 billion, with 61% of the total contract value coming from net new business.

Financial services remained the company's largest vertical, accounting for 27.9% of revenue, followed by manufacturing at 15.9% and energy, utilities, resources and services at 13.4%. Among all business segments, life sciences posted the strongest growth, expanding 24% in constant currency terms, while retail revenue declined 1.8%.

Infosys ended the quarter with 3,28,062 employees. Voluntary attrition in the IT services business rose to 13% from 12.6% in the previous quarter but remained below 14.4% reported a year ago.

Board Announces CEO Succession Plan

Alongside the quarterly results, Infosys announced that the Board has appointed Ashiss Kumar Dash as CEO Designate. Dash will succeed Salil Parekh as Managing Director and Chief Executive Officer from April 1, 2027, subject to statutory approvals, while Parekh will continue to lead the company until March 31, 2027.

Infosys Chairman Nandan Nilekani said the Board wanted its next CEO to "combine the ability to drive bold transformation with the judgment to preserve the values and customer trust that have always distinguished Infosys." Dash, who has spent more than three decades at Infosys, currently heads the company's Services, Utilities, Resources, Energy and Enterprise Sustainability business.