Infosys revenue up 3.2% in Q3, raises FY26 guidance on large deal wins

Infosys outperformed its larger peer, TCS, with a stronger performance in the Dec quarter. Its shares rose as much as 8% in early trade on the NYSE on Wednesday after the company reported higher-than-expected sales, driven by strong large deal wins, and upgraded its revenue growth guidance for FY26.

It posted sequential revenue growth of 0.6% and year-on-year growth of 1.7% in constant currency terms. In dollar terms, revenues rose 0.5% sequentially and 3.2% year-on-year to $5 billion.

TCS reported a 0.8% rise in revenue in constant currency terms but posted a 2.6% year-on-year decline. In contrast, HCLTech recorded stronger growth, with an increase of 4.2% quarter-on-quarter and 4.8% year-on-year. Infosys revised its revenue growth guidance for FY26 to 3%–3.5%, indicating improving visibility on demand . Earlier, the company raised the lower end of its revenue growth forecast for the current financial year to 2%–3%, from an earlier range of 1%–3%, citing better execution and deal momentum. The company maintained its operating margin guidance at 20%–22%.

“We saw several large deals in the previous few quarters and strong execution this quarter. We are seeing improvements in financial services and energy, utilities and resources. The way deals came through, and the manner in which we became the AI partner of choice for our largest clients, gives us confidence as we look into the next financial year. This helped us increase the guidance for the current financial year ending March,” said Infosys CEO Salil Parekh.

Meanwhile, the company reported a one-time exceptional charge of Rs 1,289 crore for the Dec quarter owing to the implementation of the recently revised labour code.

Large deal wins during the quarter stood at $4.8 billion, with 57% coming from net-new deals, reflecting improving client decision-making and deal conversions. Infosys’ operating margin dropped 2.6% sequentially and 2.9% year-on-year to 18.4%.