Infosys Q1 Results: Revenue Rises, Guidance Narrowed, Ashiss Kumar Dash Named CEO-Designate

Bengaluru-based IT services provider Infosys Ltd., India's second-largest IT services company by revenue, reported its June quarter (Q1 FY27) results after market hours on Thursday, July 23, 2026. The company posted US dollar revenue of $5,082 million, up 0.8% sequentially from $5,040 million, while rupee revenue rose 3.9% quarter-on-quarter to ₹48,211 crore from ₹46,402 crore. Net profit declined 8.6% to ₹7,769 crore from ₹8,501 crore in the previous quarter.

EBIT increased 4.3% to ₹10,163 crore from ₹9,742 crore QoQ, while EBIT margin came in at 21.1%, marginally up from 21% in the prior quarter.

Guidance Revised

Infosys narrowed its FY27 constant currency revenue growth guidance to 1.5%–3%, lowering the upper end from the previous range of 1.5%–3.5%. The company maintained its EBIT margin outlook at 20%–22%. Some sell-side analysts had expected guidance including acquisitions to land around 2%–4%.

Results vs Expectations

The earnings numbers came in marginally below expectations. According to a CNBC-TV18 poll, analysts had projected net profit of ₹7,903 crore, revenue of ₹48,431 crore, EBIT of ₹10,212 crore, EBIT margin of 21.1%, and dollar revenue of $5,127 million. Constant currency revenue growth was 1% for the quarter, below the CNBC-TV18 poll estimate of 1.8% and compared with a decline of 1.3% QoQ.

Large Deal Wins

Infosys reported large deal total contract value (TCV) of $3.6 billion for the quarter. Large deal TCV is closely tracked as an indicator of future revenue visibility for IT services firms, and the figure points to continued enterprise spending appetite despite the macroeconomic uncertainty that has weighed on the broader IT services sector.

CEO Transition Announced

Infosys appointed Ashiss Kumar Dash as CEO-designate effective July 23, 2026. His proposed date of appointment as CEO and Managing Director is April 1, 2027, for a proposed five-year term ending March 31, 2032. Salil Parekh will remain CEO and MD until Dash assumes the role. Parekh has led Infosys since January 2018 and, as he notes in his remarks below, oversaw the company's revenue growth from $10 billion to over $20 billion across his two terms.

Salil Parekh, MD & CEO, Infosys, said:

"It has been an honour for me to be the custodian of such a prestigious company, to partner with the leading companies of the world as clients, and to collaborate with an incredible team. I have enjoyed leading the company from $10 billion in revenue to over $20 billion in revenue through my two terms. We have established Infosys as a leader in digital transformation and have put in place a distinctive strategy for AI transformation. We have built a strong leadership team through this journey that is deeply committed to a One Infosys agenda. Having worked closely with Dash over many years, I have seen first-hand his integrity, customer focus, and ability to lead through change. He brings a deep understanding of our clients, our business, and our people, together with the vision and capability to lead Infosys through its next phase of transformation. I look forward to working closely with him over the coming months to ensure a smooth and successful transition."

Ashiss Kumar Dash, CEO Designate, Infosys, said:

"I am honoured by the confidence that the Board has placed in me and excited about the opportunity to lead Infosys into its next chapter. I would also like to thank Salil for his mentorship, guidance, and the countless opportunities for growth over the years. I look forward to collaborating with him to ensure a seamless transition. Technology is entering a new era, with AI fundamentally reshaping how businesses operate and create value. Infosys begins this next phase from a position of enormous strength—with a clearly articulated AI strategy, exceptional talent, deep client relationships, and values that have earned the trust of customers globally. My commitment is to build on those strengths while accelerating innovation, expanding our capabilities and helping our clients succeed in an increasingly AI-driven world. Together with the outstanding leadership team, all my colleagues, customers and partners, I look forward to shaping the next chapter of Infosys journey and creating enduring value for all our stakeholders."

Management Commentary

CEO and MD Salil Parekh noted that the 1% sequential revenue growth included a one-time impact from a client decision during the quarter. He also highlighted strong acceleration in AI-related work.

On the new CEO mandate, Parekh told CNBC-TV18 that AI strategy is core and that Ashiss Dash has been very much part of that effort. He said the company is fine-tuning strategy where needed, but the overall strategy remains well in place. Parekh described an environment where AI services are growing extremely well, with each of Infosys's six focus areas for revenue growing. The company had six large consolidation deals and four deals of just under $500 million each. Parekh noted that token cost will be an important factor in the future and the company will need to remain mindful of it.

On acquisitions, Parekh said Infosys will continue to pursue acquisitions as part of its growth strategy. The company is evaluating opportunities in new geographies and industry verticals, including healthcare, and is also exploring service-line focused acquisitions to deepen capabilities. Management said the acquisition pipeline remains robust.

Regarding compensation, Parekh said the company will roll out compensation increases in two parts, in October and January.

On forward-deployed engineers, Parekh said Infosys has a good plan in place that it will scale, with capability within the company and frontier engineers working with clients to make an impact. He noted the company had strong capabilities in this area even before the current AI wave.

AI Contribution

AI brought in approximately 8.2% of total revenue for the June quarter. As Indian IT services firms navigate the shift from traditional outsourcing toward AI-infused offerings, the share of AI-linked revenue is becoming a key metric for assessing how incumbents are adapting their business models.

Market Reaction

Shares of Infosys closed almost flat at ₹1,052.90 (up 0.076%) ahead of the results announcement. The stock is down 35% year-to-date and is among the worst performers on the Nifty IT index this year, though it has gained 5.2% in July. Following the results, Infosys ADRs fell as much as 4.85%.

Analyst Coverage

Infosys is covered by 49 analysts, of which 36 have a "buy" recommendation, 12 have a "hold" rating, and three have a "sell" recommendation.

Pre-Results Context

Ahead of the earnings, analysts had expected Infosys to revise its full-year revenue growth guidance to a range of 2%–4% or 2.5%–4.5%, assuming a 100–120 basis point contribution from the acquisitions of Optimum Healthcare IT and Stratus. Prior to the results, Motilal Oswal had projected a 50 basis point trim to the upper end of guidance, while Goldman Sachs anticipated a 50–100 basis point cut to the top end of organic growth guidance.

Based on analyst estimates, Infosys's constant currency growth at 1.8% (poll estimate) was expected to be among the highest within the largecap IT basket, second only to Tech Mahindra's 2.6% sequential growth. Peers reported mixed results: TCS grew 0.4% sequentially, HCLTech saw growth decline 0.5%, and Wipro reported a 1.2% decline.

Estimates for Infosys's constant currency revenue growth varied widely. While the CNBC-TV18 poll pegged it at 1.8%, brokerages like Citi and Goldman Sachs projected 1% and 1.1% respectively. Bullish estimates from Jefferies and CLSA came in at 2.5% and 2.3% respectively.

During Q4 FY26 results, management had guided for the usual pattern of a stronger H1 and announced plans to onboard 20,000 freshers in FY27, with a strategic focus on AI-driven initiatives and cost optimization.

Competitive pricing was another factor the market was watching. Tech Mahindra's management had highlighted that 70–80% productivity benefits over five-year deals come without visible process changes, and described the competitive pricing environment as intense and at times "irrational." Wipro's management also noted that large deals are being competitively fought.

Source: CNBC-TV18