Infosys Q1 Results Anticipated on July 23
Infosys Ltd., India's second-largest IT services provider, is scheduled to release its first-quarter results on Thursday, July 23, 2026. The Bengaluru-headquartered firm is widely anticipated to report robust double-digit growth in both net sales and net profit compared to the same quarter last year. Investors will be closely watching for any updates on client discretionary spending amidst global macro volatility, the evolving impact of artificial intelligence (AI) on business, and the ongoing geopolitical situation in the Middle East.
Analyst Expectations for Profit and Revenue
Brokerage firms have provided varying but generally optimistic forecasts for Infosys' Q1 performance:
- Nomura projects Infosys to achieve a net profit of Rs 7,679.70 crore for the June quarter, marking an 11% year-on-year (YoY) increase from Rs 6,921 crore. Revenue is expected to climb 13.7% YoY to Rs 48,086 crore, up from Rs 42,279 crore. Nomura anticipates a 1.5% quarter-on-quarter (QoQ) revenue growth in constant currency terms, including 80 basis points from inorganic growth.
- Centrum Broking estimates a 12.8% YoY rise in net profit for the Salil Parekh-led company, reaching Rs 7,806 crore. They foresee revenue growing 14.5% YoY to Rs 48,393 crore.
- ICICI Securities predicts organic revenue growth of 0.9% QoQ in constant currency for Q1FY27. This includes a 0.9% contribution from the Optimum Healthcare acquisition consolidated for two months, bringing overall growth to 1.8% QoQ in constant currency.
EBIT Margin and Deal Wins Outlook
EBIT (Earnings Before Interest and Taxes) margins are expected to see a slight contraction sequentially and on a yearly basis. Centrum Broking forecasts a 26 basis points QoQ decline in EBIT margin, primarily due to depreciation and amortization (D&A) charges related to the Optimum Healthcare acquisition. Nomura pegs Infosys' EBIT margin at 20.5% for Q1, down from 20.8% in Q4 and 21% last year. While amortization impacts may pose headwinds, currency fluctuations and Project Maximus-related tailwinds could partially offset these, according to Antique Stock Broking.
Regarding deal acquisitions, Centrum Broking anticipates Infosys to report a total contract value (TCV) between $3 billion and $3.5 billion, aligning with its past four-quarter average. Antique Stock Broking also projects deal wins to be around $3 billion.
FY27 Guidance and Key Watch Areas
Analysts largely expect Infosys to maintain its organic revenue guidance of 1.5-3.5% YoY in constant currency terms, along with an EBIT margin band of 20-22% for FY27. However, Antique Stock Broking notes that FY27 could be impacted by the exit of a low-ROI deal, reduced spending by a European client, and spending ramp-downs in specific segments, particularly retail, manufacturing (auto sub-segment in Germany), and communications. The Banking, Financial Services, and Insurance (BFSI) vertical is anticipated to remain a growth driver.
Key areas for investors to monitor during the earnings call include:
- Commentary on client discretionary spending, especially given macro volatility in the US.
- The impact of AI adoption on business pipelines and operational efficiencies.
- Any potential effects of the ongoing Middle East conflict on global operations.
- Insights into cost takeout projects and the performance of the BFSI vertical.