Summary of Infosys Investor AI Day - February 17, 2026 Company Overview - **Company**: Infosys (NYSE: INFY) - **Event**: 2026 Investor AI Day - **Location**: Bengaluru campus Key Industry Insights AI Transition - The current AI transition is fundamentally different from previous technology shifts due to its speed and impact on business operations [4][6][7] - Historical context shows that previous transitions (e.g., PCs, cloud) took longer to reach mass adoption compared to AI, which is rapidly gaining users due to existing infrastructure [5][6] - The AI transition requires a complete overhaul of business operations, moving beyond mere technological upgrades to a fundamental change in how businesses operate [7][8] Legacy System Modernization - Companies can no longer defer the modernization of legacy systems; many are spending 60%-80% of their IT budgets on maintaining outdated systems [9][10] - The need for modernization is driven by financial inefficiencies and increasing security threats [10][11] - AI provides tools for rapid and cost-effective modernization, presenting a significant opportunity for firms like Infosys [11] Deployment Gap - There exists a "deployment gap" where the rapid advancement of AI technology outpaces the ability of enterprises to implement it effectively [17][18] - This gap highlights the need for organizational change, retraining, and a shift in data management practices [17][19] Core Business Strategies AI Services Opportunity - Infosys is actively engaged in AI projects with 90% of its large clients, indicating a robust demand for AI services [32][33] - The company has identified six key areas for growth in AI services: AI strategy and engineering, data for AI, process transformation, legacy modernization, physical AI, and AI trust [36][37] AI-First Value Framework - Infosys has developed an AI-first value framework to guide its service offerings, which includes a detailed breakdown of 30 offerings and 100 sub-offerings [37][38] - The framework emphasizes the integration of AI into existing business processes to drive efficiency and innovation [39] Talent Transformation - Infosys is focusing on reskilling its workforce to meet the demands of AI integration, having recruited 20,000 college graduates in the current year [44][45] - The company aims to build a workforce that is both technically skilled and capable of reimagining workflows [54] Financial Performance - AI services currently represent 5.5% of Infosys's revenue in Q3, with expectations for robust growth in this segment [37] Challenges and Considerations Complexity of AI Integration - Integrating AI into enterprises is complex and requires a deep understanding of existing systems and processes [48][49] - Successful AI implementation involves not just technology but also a cultural shift within organizations [50][51] Unique Client Context - Each enterprise has unique data, processes, and risks, which means AI solutions must be tailored to individual client contexts [52] - Infosys's approach focuses on leveraging its deep client relationships and industry knowledge to unlock value [52] Conclusion - The AI transition presents both challenges and significant opportunities for Infosys and its clients, necessitating a strategic approach to modernization, talent transformation, and AI integration [27][28]

Core Insights - Infosys generated 5.5% of its revenue from AI services in the December quarter, according to CEO Salil Parekh [1] - The company's total revenue for the third quarter was reported at 454.79 billion rupees, equivalent to approximately $5.01 billion [1] Company Performance - Infosys reported a third-quarter revenue of 454.79 billion rupees ($5.01 billion) [1] - The contribution of AI services to the overall revenue indicates a growing focus on technology-driven solutions within the company [1]

Core Insights - Infosys, India's No.2 software-services exporter, reported that artificial intelligence services contributed 5.5% to its revenue in the December quarter, marking the first time the company has disclosed its AI business performance [1] - The Indian IT industry, valued at $283 billion, is facing investor concerns regarding AI's potential to disrupt traditional outsourcing models [1] Company Performance - Infosys achieved third-quarter revenue of 454.79 billion rupees ($5.01 billion) [4] - The company is actively engaged in 4,600 AI projects and has developed over 500 AI agents, indicating a robust growth in its AI offerings [2] Industry Context - The software-services sector in India has recently faced scrutiny, with IT stocks experiencing their worst week in over 10 months due to concerns about AI tools accelerating disruption, resulting in a loss of approximately $40 billion in market capitalization in February [3] - Infosys announced a collaboration with Anthropic to establish a dedicated center for building and deploying AI agents, initially focusing on telecom and later expanding into financial services, manufacturing, and software development [4] Events - India is currently hosting the AI Impact Summit in New Delhi from February 16-20, showcasing the country's technology ambitions [5]

Infosys has agreed to work with Anthropic to develop and deliver artificial-intelligence services to businesses in complex, regulated industries. https://t.co/uQXLcx7ECb ...

Core Insights - Infosys has entered into a partnership with Anthropic to develop and deliver artificial intelligence services tailored for businesses operating in complex and regulated industries [1] Company Summary - Infosys is collaborating with Anthropic, indicating a strategic move to enhance its offerings in the artificial intelligence sector [1] - The partnership aims to leverage AI technologies to address the specific needs of businesses in industries that face stringent regulations [1] Industry Summary - The collaboration highlights a growing trend in the industry where companies are increasingly seeking AI solutions to navigate complex regulatory environments [1] - This partnership may set a precedent for future collaborations between technology firms and AI developers to cater to regulated sectors [1]

1 February 17, 2026 Convention Center, Infosys Campus, Bengaluru Agenda | Session Name | Speaker | Title | Time (IST) | | | --- | --- | --- | --- | --- | | Tech transitions – Why is the AI transition different? | Nandan Nilekani | Chairman of the Board | 11:00 – | 11:20 AM | | The AI Services Opportunity | Salil Parekh | Chief Executive Officer and Managing Director | 11:20 – | 11:50 AM | | AI Services Playbook | Satish H.C. | Chief Delivery Officer | 11:50 – | 12:20 PM | | | Dinesh Rao | Chief Delivery Off ...

Core Viewpoint - Infosys is partnering with Anthropic to develop high-end enterprise-level AI solutions for various industries, starting with telecommunications [1] Group 1: Partnership Details - The collaboration will initially focus on the telecommunications sector, where Anthropic will establish a dedicated center to build and deploy AI agents tailored to specific business needs [1] - The partnership aims to expand into other sectors, including financial services, manufacturing, and software development [1] Group 2: Technology Integration - Infosys's Topaz platform will integrate with Anthropic's Claude large model to automate complex workflows and accelerate software delivery [1] - The collaboration seeks to create AI solutions with autonomous execution capabilities for various industries [1]

Core Insights - Infosys and Anthropic have announced a strategic collaboration aimed at developing advanced enterprise AI solutions for various industries, starting with telecommunications and expanding to financial services, manufacturing, and software development [1] Group 1: Collaboration Details - The collaboration will utilize Anthropic's Claude models, including Claude Code, integrated with Infosys Topaz AI offerings to automate complex workflows and accelerate software delivery [1] - A dedicated Anthropic Center of Excellence will be established to focus on building AI agents tailored to industry-specific operations, beginning with telecommunications [1] Group 2: Industry Applications - In software development, Claude Code will assist teams in writing, testing, and debugging code, enhancing the speed from design to production [1] - In manufacturing, Claude will facilitate faster product design and simulation, reducing R&D timelines and allowing for more iterations before production [1] - In financial services, AI agents will enhance risk detection, automate compliance reporting, and personalize customer interactions based on comprehensive account histories [1] - In telecommunications, AI agents will modernize network operations and improve service delivery, addressing the complexities of a heavily regulated industry [1] Group 3: Leadership Perspectives - Dario Amodei, CEO of Anthropic, emphasized the importance of domain expertise in bridging the gap between AI models and their application in regulated industries [1] - Salil Parekh, CEO of Infosys, highlighted that the collaboration represents a strategic leap in advancing enterprise AI, aiming to unlock value and enhance organizational intelligence and resilience [1]

Core Insights - The SGA Emerging Markets Growth Strategy experienced a divergence from the market in Q4 2025, with the portfolio returning 0.8% (Gross) and 0.6% (Net), compared to the MSCI EM Net TR Index return of 4.7% and the MSCI EM Growth Net TR Index return of 3.3% [1] - For the full year 2025, the portfolio achieved returns of 23.8% (Gross) and 22.8% (Net), lagging behind the indexes which returned 33.6% and 34.3% respectively [1] - The portfolio anticipates annual revenue growth of 13% and earnings growth of 16% over the next three years [1] Company Focus: Infosys Limited - Infosys Limited (NYSE:INFY) was highlighted as a top contributor in Q4 2025, benefiting from steady execution, resilient recurring revenues, and strong performance in large-scale digital transformation projects [2][3] - As of February 11, 2026, Infosys's stock closed at $15.76 per share, with a one-month return of -16.26% and a twelve-month decline of 27.51% [2] - The company has a market capitalization of $63.76 billion [2] - Despite recent investor sentiment cooling towards India due to softening domestic demand and tariff uncertainties, Infosys's strong operating margins and client retention support robust free cash flow generation [3] - Concerns regarding potential disruptions from AI in outsourced IT services have affected Infosys shares, but the company is well-positioned to assist enterprises with AI deployment challenges [3] - The position in Infosys was trimmed to a below-average weight due to valuation considerations [3]

Core Insights - The increase in US visa fees is projected to raise operating expenses for Indian IT services firms by $100 million to $250 million, which is about 1% of their revenues [1][12] - Despite the higher costs, most large Indian IT firms can absorb these expenses without significant deterioration in their financial profiles due to their high profitability and robust financial positions [1][12] Financial Impact - The immediate margin impact on top-tier IT firms is expected to be modest, with the increase in operating expenses constituting around 1% of revenues and EBITA margin hit limited to around 100 basis points [5][12] - Indian IT majors have EBITA margins of 19%-26%, which exceed global peers' margins of 10%-17%, and many maintain substantial net cash positions, such as $7 billion at TCS and $4 billion at Infosys as of December 31, 2025 [6][12] Industry Dependency on H-1B Visas - The business model of the Indian IT industry relies heavily on H-1B visas, with the computer-related technology sector accounting for approximately 70% of such visas issued over the last five years [2][12] - Leading Indian IT companies like Tata Consultancy Services and Infosys are among the top H-1B sponsors, indicating their reliance on this visa category [2][12] Challenges for Smaller Firms - Small and mid-sized companies may struggle to absorb the increased visa costs due to lower margins and limited liquidity, potentially compromising profitability or delaying investments in growth areas like AI and cloud [7][12] - This situation could lead to accelerated industry consolidation, as scale and financial strength become critical differentiators [7][12] Talent Shortages and Demand - Structural talent shortages in the US are expected to sustain demand for Indian IT services, with an estimated annual shortfall of around 200,000 workers in the US computer and IT sector [8][12] - Indian nationals account for 70%-75% of all H-1B visa approvals since 2020, and India produces about 2.5 million STEM graduates annually compared to 850,000 in the US [9][12] Investments in Automation and AI - Indian IT firms are increasing investments in automation and artificial intelligence to mitigate visa-related risks and improve efficiency, with many embedding generative AI to automate routine tasks [10][12] - This shift towards AI comes with near-term costs, as capital spending on AI infrastructure and employee training is expected to grow, putting pressure on free cash flow over the next 1 to 2 years [11][12]