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]

- Large Deal Wins at $3.8 Billion with 55% Net New; Demonstrating Deep Competitive Advantage in Consolidation Play - FY26 Revenue Guidance Revised to 1%-3% and Margin Guidance Retained at 20%-22% BENGALURU, India, July 23, 2025 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $4,941 million in Q1 revenues, year- on-year growth of 3.8% and sequential growth of 2.6% in constant currency. Operating margin was at 20.8%. F ...

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]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 2.6% sequentially and 3.8% year on year in constant currency terms [2][4] - The guidance for growth for financial year 2026 has been revised from 0% to 3% to 1% to 3% in constant currency terms, while margin guidance remains unchanged at 20% to 22% [4] Business Line Data and Key Metrics Changes - Large deals amounted to $3.8 billion, driven by leadership in enterprise AI and client consolidations [3] - The company has built 300 AI agents across various business areas, enhancing operational efficiency and customer experience [3] Market Data and Key Metrics Changes - The company observed strong growth in Europe, while the U.S. market showed flat growth [20][21] - The performance in financial services remains strong, with the company being the AI partner of choice for many large clients [34] Company Strategy and Development Direction - The company is focusing on enterprise AI and has seen positive growth from AI-driven projects and client consolidations [14][29] - There is an emphasis on maintaining a strong position in financial services and expanding capabilities in IP-led businesses [36] Management's Comments on Operating Environment and Future Outlook - Management noted that while the economic environment is stabilizing, it is not fully settled, leading to cautious guidance adjustments [10][70] - The company is optimistic about future growth driven by AI and digital transformation initiatives [43][44] Other Important Information - The company has maintained a constant headcount, with utilization at a peak of 85% [15] - Wage hikes have been implemented, impacting margins by 100 basis points this quarter [28] 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][70] Question: How much of the growth is attributed to acquisitions? - Approximately 40 basis points of the 2.6% growth came from inorganic sources [12] Question: What is the outlook for hiring and productivity with AI? - The company plans to continue hiring in line with previous announcements, and AI is expected to enhance productivity without significantly increasing headcount [15][65] Question: Is there any revenue cannibalization observed? - Management indicated that productivity benefits from AI are being shared with clients, but there is no significant revenue cannibalization reported [25][26] Question: What is the impact of wage hikes on margins? - Wage hikes and higher variable pay have contributed to a 100 basis point decline in margins this quarter [28] Question: How is the company addressing geopolitical uncertainties? - Management stated that while there are changes in the economic outlook, no specific project changes have been observed due to geopolitical factors [63]

INFOSYS第一季度 净利润达692亿卢比，同比增长8.6%。 ...

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]

Infosys Limited (NYSE: INFY ) is about to report its FY 2026's Q1 earnings on Wednesday, July 23rd. Analysts expect the company to report an EPS of 19 cents on $4.85 billion in revenue. Should Infosys meet the expectations, it'd represent a 5% YoYAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving ...

Core Insights - Infosys has launched the Infosys Enterprise Innovation Lab for SAP Solutions in Düsseldorf, Germany, aimed at accelerating enterprise transformation through AI, data, and cloud solutions [1][2][3] - The lab will facilitate co-creation of tailored solutions to address business challenges and enhance operational efficiency, financial performance, and decision-making through real-time data insights [2][3] Group 1: Lab Features and Offerings - The lab will provide access to Infosys Topaz and SAP Business AI, enabling organizations to discover possibilities and develop practical applications [5] - It offers a collaborative workspace for customers and experts to co-create AI solutions tailored to specific business needs [5] - The lab aims to create a foundation for designing AI and data strategies that align with business goals through clear plans and use cases [5] Group 2: Strategic Collaboration - Infosys and SAP are collaborating to revolutionize business transformation by integrating enterprise-wide data to fuel AI-based solutions [2][3] - The partnership emphasizes the importance of faster, flexible transformations with lasting value, leveraging AI-powered innovation and seamless cloud adoption [3] - Infosys has over 25 years of expertise in SAP software transformation, which will be utilized to develop cloud and AI solutions across various industries [3] Group 3: Business Outcomes - The collaboration aims to empower businesses to leverage the full potential of cloud, data, and AI, resulting in enhanced efficiency, improved decision-making, significant cost savings, and future-readiness [3] - Solutions developed in the lab will be available across Infosys' global network of over 12 Living Labs, expanding the reach and impact of these innovations [2]

Core Insights - Infosys and Adobe have announced a strategic collaboration to enhance the marketing lifecycle for global brands using AI, aiming to unify customer experiences, personalize content, and streamline workflows for efficiency [1][6] Group 1: Infosys Aster™ and Adobe Collaboration - The collaboration will leverage Infosys Aster™, a suite of AI-enhanced marketing services, and Adobe's capabilities to create a unified customer experience at scale [1][2] - The partnership aims to empower Chief Marketing Officers (CMOs) to deliver timely and relevant brand experiences across various channels and touchpoints [3][6] Group 2: Marketing Solutions and AI Integration - Infosys Aster™ provides AI-powered agility to the marketing value chain, enabling marketers to respond to changing customer behaviors and market trends [2][3] - The integrated solution allows for hyper-targeted personalized campaigns, improving campaign performance by 27% for a retail jewelry brand through the use of Adobe technologies [4][5] Group 3: Workflow Efficiency - The collaboration introduces autonomous agents to optimize marketing tasks, resulting in a 20% increase in campaign go-live efficiencies for a technology giant [5][6] - Marketers can automate content creation and streamline campaign workflows, enhancing overall channel efficiency [5][6] Group 4: Market Context and Future Outlook - The Infosys CMO Radar 2024 indicates that 62% of AI-fluent CMOs see their influence growing in corporate decisions, highlighting the increasing importance of AI in marketing [3] - The partnership is positioned to address the need for AI-native marketing tools that understand individual customer needs, aiming to drive sustainable value for brands and customers alike [7]