The collaboration will implement solutions that automate processes and provide self-service options to support RWE's journey towards operational excellenceBENGALURU, India and ESSEN, Germany , July 28, 2025 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in digital services and consulting, today announced a strategic collaboration with RWE, a German multinational energy company, to drive automated digital workplace transformation and improve operational efficiency. Leveraging I ...

Core Insights - Infosys reported first-quarter fiscal 2026 results with earnings of 19 cents per share, matching the Zacks Consensus Estimate, while revenues increased 4.8% year over year to $4.94 billion, surpassing the consensus estimate by 2.1% [1][2][10] Financial Performance - The company's revenues grew from $4.71 billion in the year-ago quarter to $4.94 billion, driven by strategic initiatives and growth across segments [2] - Gross profits rose 4.8% year over year to approximately $1.53 billion, with a gross margin remaining flat at 30.9% [6] - Operating income increased 3.4% year over year to $1.03 billion, although the operating margin contracted by 30 basis points to 20.8% [6][10] Revenue Breakdown - Revenue growth was observed in several segments: Manufacturing increased 14.72% to $795 million, Financial Services grew 6.23% to $1.38 billion, and Energy, Utilities, Resources & Services sales rose 7.19% to $671 million [4] - The Retail segment saw a modest increase of 1.38% to $660 million, while Life Sciences revenues declined by 6.41% to $321 million [5] Geographic Performance - Revenues in North America and Europe increased by 0.5% and 16.2% year over year, respectively, while revenues in India declined by 3.1% [3] - On a constant currency basis, North America and Europe saw increases of 0.4% and 12.3%, while India experienced a decline of 1% [3] Client Metrics - Infosys added 93 clients in the fiscal first quarter, bringing the total number of clients generating over $100 million to 41, an increase from 40 in the previous year [5] Guidance - The company projects fiscal 2026 revenues to grow by 1-3% on a constant currency basis and expects an operating margin in the range of 20-22% [8]

Company Performance - Infosys has raised the lower end of its annual growth forecast for the current fiscal year after reporting better-than-expected results for the June quarter [1][3] - The company reported a net profit of 69.2 billion rupees ($801 million) for the April-June quarter, reflecting an 8.6% year-on-year increase [3][4] - Revenue for the same quarter rose by 7.5% year-on-year to 422.8 billion rupees [4] Revenue Forecast - Infosys now expects revenue growth of 1% to 3% on a constant-currency basis for the current financial year, an increase from the previous forecast of flat to 3% growth [3][4] - The company's performance is attributed to its enterprise AI capabilities and large deal wins totaling $3.8 billion, indicating strong client relationships [4] Industry Context - Despite Infosys's positive results, the broader Indian IT sector, valued at $283 billion, faces a challenging outlook, with larger rival TCS reporting disappointing quarterly numbers [5] - The slow revival in client spending is noted, influenced by global economic uncertainties and trade tensions, although Trump's tariffs do not directly impact Indian IT firms [2]

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Infosys (INFY) reported $4.94 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 4.8%. EPS of $0.19 for the same period compares to $0.18 a year ago. The reported revenue compares to the Z ...

Infosys (INFY) Q1 2026 Earnings Call July 23, 2025 08:00 AM ET Company ParticipantsSandeep Mahindroo - Financial Controller & Head - IRSalil Parekh - CEO, MD & Executive Member of the BoardJayesh Sanghrajka - EVP & Group CFOAnkur Rudra - Executive DirectorKumar Rakesh - Associate Director - Equity ResearchBryan Bergin - Managing DirectorJonathan Lee - Managing Director - Equity ResearchSurendra Goyal - MD & Head - India ResearchRishi Jhunjhunwala - SVPSandeep Shah - Director - Equity ResearchVibhor Singhal ...

Financial Data and Key Metrics Changes - Revenues grew 2.6% sequentially and 3.8% year on year in constant currency terms [4][10] - Operating margin was 20.8%, down 20 basis points quarter on quarter and 30 basis points year on year [12][14] - Free cash flow was $884 million, representing 109% of net profit, marking the fifth consecutive quarter of free cash flow exceeding 100% of net profit [13][14] - EPS in rupee terms grew by 8.6% and in dollar terms grew by 5.8% year on year [12][14] Business Line Data and Key Metrics Changes - Large deals totaled $3.8 billion, with 55% being net new [14] - Manufacturing grew in double digits, while financial services saw good momentum in the U.S. [11][17] - The company signed nine deals in communication, six in URS, five in manufacturing, four in financial services, and two each in high-tech and retail [15] Market Data and Key Metrics Changes - North America grew 2.9% sequentially in constant currency, while Europe grew 12.3%, over three times the company average [12][15] - The company is positioned as a leader in Gartner's first generative AI consulting and implementer services quadrant [7] Company Strategy and Development Direction - The company revised its growth guidance for FY 2026 from 0% to 3% to 1% to 3% in constant currency terms, maintaining margin guidance at 20% to 22% [7][24] - Focus on enterprise AI and vendor consolidation as key growth drivers [4][20] - Investment in industry, cloud, energy transition, and AI-driven operational efficiency is expected to drive growth [20] Management's Comments on Operating Environment and Future Outlook - The management noted that clients remain cautious in discretionary spending, leading to delayed decision-making [16][21] - The geopolitical situation and tariff uncertainties continue to impact client behavior [16][17] - Near-term visibility remains good, with expectations for stronger performance in the first half compared to the second half of the year [16][24] Other Important Information - The company has built 300 AI agents across business operations and IT areas, enhancing operational efficiency for clients [4][5] - The effective tax rate for the quarter was 28.9%, with an expected range of 29% to 30% for the financial year [16] Q&A Session Summary Question: Organic growth momentum and guidance - The management explained that the guidance reflects heightened uncertainty in the environment, despite strong Q1 performance [27][29] Question: AI impact on margins and pricing - The management indicated that productivity gains from enterprise AI are shared with clients, and they are proactively engaging clients on these benefits [31][32] Question: Vendor consolidation and competition - The management noted that they are benefiting from vendor consolidation, as clients seek strong delivery and AI solutions [34][52] Question: Europe performance sustainability - The management expressed confidence in the growth opportunities in Europe, driven by large deals and outsourcing trends [44][47] Question: Discretionary spending outlook - The management stated that clients are currently cautious, and the timing of a return to discretionary spending remains uncertain [86][96] Question: Impact of tariffs on client spending - The management acknowledged that tariff uncertainties continue to affect client spending decisions, but there is interest in leveraging AI for productivity [94][96]

Fact Sheet Fact Sheet Consolidated Financial Data - Second Quarter, Fiscal 2023 Consolidated Financial Data - First Quarter, Fiscal 2026 | 2.6% QoQ | 20.8% | 8.6% YoY | $3.8 Bn | $884 Mn | | --- | --- | --- | --- | --- | | 3.8% YoY CC Growth | Operating Margin | EPS Increase (₹ terms) | Large Deal TCV (55% Net New) | Free Cash Flow | Revenue Growth- Q1 26 | | Reported | C C | | --- | --- | --- | | QoQ growth (%) | 4.5% | 2.6% | | YoY growth (%) | 4.8% | 3.8% | Revenues by Business Segments | | | | | | (in % ...

Financial Data and Key Metrics Changes - The company reported a sequential revenue growth of 2.6% and a year-on-year growth of 3.8% in constant currency terms [3][5] - The guidance for revenue growth for the financial year 2026 has been revised from 0% to 3% to a new range of 1% to 3% in constant currency terms [5][10] - The margin guidance remains unchanged at 20% to 22% [5] Business Line Data and Key Metrics Changes - Large deals amounted to $3.8 billion, driven by leadership in enterprise AI and client consolidations [4] - The company has built 300 AI agents across various business areas, which are now deployed within client operations [4] Market Data and Key Metrics Changes - The U.S. market has shown flat growth, while Europe has experienced strong growth, attributed to prior investments in that region [17][19] - The company noted that Europe remains a strong market due to investments made in previous years [19] Company Strategy and Development Direction - The company is focusing on enterprise AI and has seen good traction with AI agents, which are helping clients improve decision-making and operational efficiency [4][14] - There is a strong emphasis on consolidation as clients increasingly select Infosys for their needs [14][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing economic changes but noted a stable outlook, with increased demand for AI and consolidation services [10][13] - The company is optimistic about future growth driven by enterprise AI and new revenue streams from deeper analytics and optimization efforts [41] Other Important Information - The company has maintained a constant headcount, with utilization at a peak of 85% [15] - A wage hike was implemented in January and April, impacting margins by 100 basis points this quarter [20][27] Q&A Session Summary Question: Why has the upper end of guidance not been raised despite strong performance? - Management explained that while performance was strong, the economic environment remains uncertain, leading to a cautious approach in guidance adjustments [10][11] Question: How much of the growth is attributed to acquisitions? - Inorganic growth contributed approximately 40 basis points to the reported 2.6% growth [12] Question: What is the outlook for hiring and productivity with AI? - Management indicated that while headcount remains flat, productivity is expected to increase due to AI, potentially reducing the need for significant hiring in the future [18][64] Question: Is there any revenue cannibalization observed? - Management noted that productivity benefits from AI are being shared with clients, but did not confirm any significant revenue cannibalization [22][23] Question: What is the impact of wage hikes on margins? - The wage hikes and higher variable pay have negatively impacted margins by 100 basis points, but pricing benefits and productivity improvements have helped offset some of this decline [27][54]

Infosys (INFY) Q1 2026 Earnings Call July 23, 2025 06:45 AM ET Speaker0Very good evening everyone and thank you for joining Infosys' first quarter financial results. My name is Rishi and on behalf of Infosys, I'd like to welcome you today. As always, we request one question from each media house so that we can accommodate all of you over the next forty five minutes or so. With that, let me invite our Chief Executive Officer, Mr. Salil Parikh for his opening remarks.Over to you, Salil.Speaker1Thanks, Rishi. ...

Core Insights - Analysts forecast Infosys (INFY) will report quarterly earnings of $0.19 per share, reflecting a year-over-year increase of 5.6% [1] - Expected revenues for the quarter are projected at $4.84 billion, indicating a 2.6% increase compared to the same quarter last year [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised upward by 1.3%, indicating a collective reassessment by analysts [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Key Metrics - Analysts estimate 'Employee Metrics - Software Professionals' will reach 256,265, down from 298,123 in the same quarter last year [5] - The expected 'Utilization - Including trainees - Consolidated' is projected at 82.8%, compared to 83.9% reported in the same quarter last year [5] - The consensus for 'Utilization - Excluding trainees - Consolidated' is 84.9%, down from 85.3% in the previous year [6] - The estimate for 'Employee Metrics - Sales & Support' stands at 14,344, compared to 17,209 a year ago [6] Stock Performance - Infosys shares have changed by +0.2% in the past month, while the Zacks S&P 500 composite has moved +5.4% [6] - With a Zacks Rank 2 (Buy), INFY is expected to outperform the overall market in the near term [6]