Key Takeaways:
Infosys Ltd. (NSE: INFY) reported a 21 percent year-over-year rise in net profit to ₹8,501 crore for its fourth quarter, though the company guided for slower growth in the upcoming fiscal year.
"Our AI-first strategy and partnerships are helping drive market share gains, with platforms like Topaz Fabric strengthening client engagement and value delivery," Salil Parekh, CEO and MD, said.
The Bengaluru-based company's profit beat the ₹7,508.6 crore average estimate from analysts, while revenue for the quarter ended March 31 rose 13.4 percent to ₹46,402 crore, narrowly missing expectations. For the full fiscal year 2026, the company crossed the $20 billion revenue mark, reporting $20.16 billion with a constant currency growth of 3.1 percent.
Infosys forecast revenue growth of 1.5 percent to 3.5 percent in constant currency for the 2027 fiscal year, a significant slowdown from the 9.6 percent growth reported for FY26. The company set an operating margin guidance of 20 percent to 22 percent for the new fiscal year.
The board recommended a final dividend of ₹25 per share. Combined with the interim dividend of ₹23 paid in October 2025, the total dividend for the financial year amounts to ₹48 per share. The record date for the final dividend is June 10, with payment scheduled for June 25.
Despite the solid profit numbers, Infosys reported a net reduction in its workforce for the fourth quarter, with headcount falling by over 8,000 employees to 328,594. The company's attrition rate edged up to 12.6 percent. However, the company's CFO stated that Infosys plans to hire 20,000 fresh graduates this year.
The company's stock has been under pressure, falling about 23 percent year-to-date in 2026 and trading near its 52-week low. The conservative guidance for fiscal 2027 may influence investor sentiment in a sector already grappling with global macroeconomic uncertainties. Investors will watch the company's ability to convert its $14.9 billion in large deal wins from FY26 into sustained revenue.
This article is for informational purposes only and does not constitute investment advice.
