Infosys Q4 Net Profit Falls Nearly 12%; FY26 Revenue Forecast Flat

Infosys reported a consolidated net profit of Rs 7,033 crore for the fourth quarter of FY25, marking an 11.7% drop from Rs 7,969 crore in the same period last year. Revenue for the quarter rose 7.9% year-on-year to Rs 40,925 crore.

Infosys shares gained over 1% ahead of the earnings announcement, closing at Rs 1,427.70 on the NSE.

The company reported an operating margin of 21% for Q4 FY25, a slight decline of 0.3 percentage points compared to the previous quarter. However, it reflected a 0.9 percentage point improvement from Q4 FY24.

Free cash flow hit an all-time high at $4,088 million, up 41.8% year-on-year. The total contract value (TCV) of large deal wins for the year stood at $11.6 billion, with 56% being net new.

For FY26, Infosys offered a conservative revenue growth projection of 0% to 3% in constant currency terms. It expects operating margins to remain in the 20% to 22% range.

Commenting on the outlook, CEO Salil Parekh acknowledged prevailing macroeconomic uncertainties but expressed confidence in the company's execution. “We are executing with agility. The large deals we secured in the last quarter are progressing well. We had two significant deals last year, and they are now entering the next phase,” he said.

Parekh also noted that recent tariff measures introduced by U.S. President Donald Trump could impact Infosys’s consulting business in the consumer packaged goods (CPG) segment.

“FY25 operating margins expanded by 0.5%, which reflects our relentless focus on identifying opportunities for efficiency and executing Project Maximus with discipline, even while navigating multiple headwinds in a challenging macro environment. We delivered the highest-ever free cash flows in the company’s history in FY25,” said CFO Jayesh Sanghrajka.

The Infosys board has proposed a final dividend of Rs 22 per share. Including the interim dividend, this marks a 13.2% increase over last year.

Infosys to Hire 20,000 Freshers in FY26

During the post-earnings press conference, CFO Jayesh Sanghrajka announced that the company plans to hire over 20,000 freshers in FY26. He also noted that Infosys implemented salary hikes in January and April.

Addressing recent controversy around alleged forced layoffs of trainees at its Mysuru campus, CEO Salil Parekh said, “We have a rigorous way to test individuals, and that process has remained unchanged for over 20 years.” The remarks followed reports that hundreds of trainees were let go after failing internal assessments.

Infosys added 199 employees in Q4, taking its total headcount to 323,578 for FY25 — an increase of 6,388 from the previous year. The attrition rate for the quarter on the last twelve-month basis increased to 14.1% from 13.7 percent in the December quarter.

On high attrition, CFO Sanghrajka acknowledged that the company is facing talent losses to multiple players, including Global Capability Centers (GCCs). Parekh added that Infosys has collaborated with GCCs to help set up or expand operations but clarified, “We haven't set up any new GCC unit.”