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Informist, Thursday, Jul. 23, 2026

By Rajesh Gajra

MUMBAI – Infosys Ltd.'s sequential growth of 1% in the June quarter revenue in constant currency terms did not meet market expectations. Analysts had expected Infosys' revenue in constant currency terms to rise between 1.4% and 2.4% for the reporting quarter.

In rupee terms, the tech major's consolidated revenue growth on a sequential basis was higher than the previous two quarters. The net profit decline of the company was the second worst sequential performance in eight quarters.

Infosys' consolidated net profit fell 8.6% sequentially to INR 77.69 billion in the June quarter, missing the analysts' estimate of INR 78.67 billion by a small margin. The company's consolidated revenue increased 3.9% on quarter to INR 482.11 billion, which was also slightly below the Street view of INR 484.45 billion.

The company reported an operating margin of 21.1% for the June quarter, up from 20.9% in the trailing quarter.

In rupee terms, the June quarter sequential revenue growth was driven by a growth in all verticals except for the miscellaneous category. In terms of segment profit, the financial services, manufacturing, energy and utilities, and communication verticals reported a sequential growth, while retail, life sciences, and hi-tech reported decline in profit growth.

Infosys cut its revenue growth projection to 1.5-3.0% from 1.5-3.5% in constant currency terms for 2026-27 (Apr-Mar), but retained the operating margin band of 20-22% for the year.

Geographically, the contribution of North America to total revenue of Infosys increased to 56.4% in the June quarter from 55.7% in the trailing quarter. The share of all other geographies declined. Europe's revenue share declined to 32.1% from 32.6%, India's inched down to 2.5% from 2.6%, while the Rest of the world segment contributed 9% to total revenue, down from 9.1%.

On a year-on-year basis, the June quarter revenue in constant currency was up 2.4%, led by a growth of 2.4% in financial services vertical, 1% in manufacturing, 1.3% in energy and utilities, 1.3% in communication, 2.4% in hi-tech, 24% in life sciences verticals. There was a decline in revenue growth in constant currency terms of 1.8% in retail segment.

Infosys' generated free cash flow of $960 million in the reporting quarter, up sharply from $833 million in the March quarter. "Our resilient margins of 21.1% and consistent strong cash generation reflect the strength of our business model, disciplined execution and continued focus on operational excellence in a challenging business environment," Jayesh Sanghrajka, chief financial officer, Infosys, was quoted as saying in the company's earnings press release.

In dollar terms, Infosys' consolidated revenue increased to $5.08 billion in the reporting quarter from $5.04 billion in the trailing quarter. In constant currency terms, the North America revenue was up 3.2% on year, Europe revenue was up 2.8%, while India revenue fell 4.2%.

The last 12 months attrition rate in IT services of the company increased to 13% in the June quarter from 12.6% in the trailing quarter, The employee headcount declined to 328,062 as of Jun. 30 from 328,594 as of Mar. 31. The employee utilisation for the quarter including trainees increased sequentially to 82.1% from 79.7%, while the utilisation excluding trainees increased to 84.9% from 83%.

The company Thursday also announced the appointment of Ashiss Kumar Dash as chief executive officer designate. He is planned to succeed Salil Parekh on Apr. 1, 2027, following the completion of Parekh's second term after nine years, according to the company. "Having spent over three decades with Infosys, Dash has held senior leadership roles spanning customerfacing businesses, delivery, and global operations across multiple geographies," the company said in a press release.

Infosys announced its June quarter earnings after market hours Thursday. Shares of the company ended Thursday at INR 1,047.40, down 0.5% from the closing price Wednesday.  End

US$1 = INR 96.82

Edited by Akul Nishant Akhoury

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