Infosys Forecasts FY26 Revenue Growth Guidance of 0-3%, Profit Down 12% The dollar revenue for the fourth quarter was up 4.8 per cent annually in constant currency to USD 4.7 billion on the back of large deals bookings with a total contract value of USD 2.6 billion.

Infosys, India's second largest IT services firm, has forecast a revenue growth of 0-3 per cent for full fiscal FY26 reflecting an uncertain but steadily improving business environment. The operating margin guidance stood at 20-22 per cent.

The Bengaluru-based company reported a net profit of INR 7,033 crore for the fourth quarter ended March, down 12 per cent from the year-ago period. The revenue for the fourth quarter was up nearly 8 per cent YoY to INR 40,925 crore.

The dollar revenue for the fourth quarter was up 4.8 per cent annually in constant currency to USD 4.7 billion on the back of large deals bookings with a total contract value of USD 2.6 billion.

"We have built a resilient organization with sharp focus on client-centricity and responsiveness to the market, thanks to the trust of our clients and dedication of our employees. Our performance for the year has been robust in terms of revenues, expansion in operating margins and highest ever free cash generation," said Salil Parekh, CEO and MD, Infosys. "Our depth in AI, cloud and digital and strength in cost efficiency, automation, and consolidation position us well for the needs of our clients", he added.

The Indian IT services industry may brace for a challenging year ahead as the new tariffs under American President Donald Trump are likely to increase inflation in its key US market and force clients to cut spending. The recent tariff rates add to the existing delays in the decision-making cycle of clients and a cut in discretionary spend.

Operating margins for the March quarter expanded 90 basis points to 21 per cent from 20.1 per cent in the corresponding quarter of the previous year. On a sequential basis, margins narrowed 30 basis points from 21.3 per cent in the preceding three months.

"FY25 operating margins expanded by 0.5 per cent which reflects our relentless focus on identifying opportunities for efficiency and executing Project Maximus with discipline, after navigating through multiple headwinds in a challenging macro environment. We delivered the highest ever free cash flows in the history of the company in FY25," said Jayesh Sanghrajka, CFO. The Board has proposed a final dividend of INR 22, which along with the interim dividend, is an increase of 13.2 per cent over last year." he added.

Sector wise, growth was driven by its largest verticals – Financial Services grew 12.6 per cent YoY in constant currency and contributed 28.4 per cent to the total revenue as of the March quarter. Manufacturing grew 14 per cent YoY in constant currency and contributed nearly 16 per cent to the total revenue.

The voluntary attrition rate on a trailing 12-month basis increased to 14.1 per cent from 13.7 per cent in the preceding three months taking the total headcount to 323,578 as of March 31, 2025.

Infosys declared its results on Thursday after market hours. Ahead of the results, Infosys shares closed up 0.5 per cent at INR 1,420.20 on the BSE.