Infosys lowers revenue growth guidance for FY26

Net profit falls around 12% year-on-year in Q4 of FY25

Bengaluru: India's second largest IT services provider Infosys on Thursday lowered its revenue guidance for the current financial year (FY26) keeping it in the range of 0-3 per cent, as compared to 4.5-5 per cent in the third quarter of fiscal year 2025 (third time in a row), signalling a caution in the growth environment.

“At the bottom end of the guidance we have baked in some deterioration in the environment, some uncertainty,” said Chief Financial Officer Jayesh Saghrajka.

The company’s net profit for the fourth quarter of FY25 fell about 12 per cent on a year-on-year (YoY) basis to Rs 7,033 crore. Meanwhile, its revenue stood at Rs 40,935 crore, a 4.8 per cent growth in constant currency terms for the quarter.

Infosys added only 199 employees in the fourth quarter, taking the total headcount to 3,23, 578.The company plans to hire over 20,000 freshers in the current financial year.

The Bengaluru-headquartered company’s operating margin for the quarter stood at 21 per cent, an increase of 0.9 per cent YoY but a decline of 0.3 per cent quarter-on-quarter (QoQ). Commenting on the margin decline, Sanghrajka said, "The biggest headwind we had was because of the compensation that we had announced. A large part of our employees got a compensation increase effective first of January, and that impacted by 140 basis points. We had 40 basis points on account of amortisation of intangibles for the acquisition that we made.”

Going forward, it has retained its operating margin guidance at 20-22 per cent.

Infosys’ large deal wins stood at $2.6 billion in the last quarter of FY25. For the whole fiscal year, the large deal total contract value stood at $11.6 billion. However it hasn’t witnessed any setbacks or rethink in the ongoing deals.

“We have several deals that we closed in the last quarter and the quarters before and those are moving into the appropriate next phases. We have not seen a change in that,” commented Chief Executive Officer and Managing Director Salil Parekh.

However, the management is watching out for changes in industries which could be impacted due to the uncertain and dynamic environment.

The company's board has proposed a final dividend of Rs 22.

Infosys announced the acquisition of Australian cybersecurity services firm The Missing Link in an all-cash deal of Australian $98 million (about Rs 532 crore). Infosys will acquire the firm through its wholly-owned subsidiary Infosys Singapore Pte Ltd, according to a regulatory filing.

Apart from this it also announced the acquisition of energy consulting firm MRE Consulting for $36 million (about 307.4 crore) in an all-cash deal. The IT firm will acquire the consultancy company through its wholly owned subsidiary Infosys Nova Holdings LLC.

Both of these acquisitions are expected to close during the first quarter (April-June) of FY26.

Apart from this, Mitsubishi Heavy Industries (MHI) has invested Japanese Yen 150 million (about Rs 8.9 crore) in Infosys-led Joint Venture HIPUS to acquire a 2 per cent stake from Infosys Singapore.Through this investment, MHI aims to further explore new business opportunities in the region, a regulatory filing said. This transaction too is expected to close in the current quarter.