Infosys Q1 Earnings Match Estimates, Revenues Increase Y/Y

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]