Infosys Q3 Results: Consolidated PAT Drops 10% QoQ To Rs 6,654 Cr; FY26 Revenue Guidance Hiked

India's second largest tech giant, Infosys reported nearly 10% qoq and over 2% yoy decline in consolidated net profit to Rs 6,654 crore in Q3 of FY26, in-line with TCS and HCL Tech profitability which also faced setback due to new labour codes. In the quarter under review, Infosys chalked down up to Rs 1,289 crore as impact for new labour codes. Despite this, Infosys has hiked its revenue guidance for FY26 which is also in-line with expectations. However, unlike TCS and HCL, Infosys has not declared any dividends.

Infosys net profit stood at Rs 6,806 crore in Q3FY25 and Rs 7,364 crore in Q2FY26.

On the top-line front, Infosys reported revenue from operations of Rs 45,479 crore in Q3FY26, registering a growth of 2.22% from revenue of Rs 44,490 crore in Q2FY26 and up by 8.9% from revenue of Rs 41,764 crore in Q3FY25.

During the quarter under review, Infosys delivered $5,099 million in Q3 revenues, recording year on year growth of 1.7% and sequential growth of 0.6% in constant currency.

Further, the tech player reported IFRS operating margin of 18.4%. Meanwhile, adjusted operating margin increased 0.2% sequentially to 21.2%.

"Infosys delivered a strong Q3 performance demonstrating how our differentiated value propositions in enterprise AI, through Infosys Topaz, are consistently driving higher market share. Clients increasingly view Infosys as their AI partner with demonstrated expertise, innovation capabilities and strong delivery
credentials. This has helped them unlock business potential and enhanced value realization", said Salil Parekh, CEO and MD.

He further added, "Central to this journey is our commitment to reskill, transform and empower our dedicated human resource pool to drive success in an AI augmented world."

That being said, Infosys' free cash flow generation was robust at $915 million. Adjusted free cash flow generation was $965 million, 112.8% of adjusted net profit. TCV of large deal wins was $4.8 billion, with net new of 57%. On the other hand, headcount increased by 5,043.

For year-to-date, revenue grew at 2.8% year on year in constant currency. The reported IFRS operating margin was at 20.0%. Adjusted operating margin was at 21.0%.

For FY26 guidance, Infosys raised its revenue growth to 3% to 3.5% in constant currency. While operating margin expectation stays at 20%-22%.

According to Jayesh Sanghrajka, CFO, Infosys' performance was broad-based in Q3 with 0.6% sequential revenue growth, 0.2% adjusted operating margin expansion, stellar large deal wins at $4.8 billion, and robust adjusted free cash generation at $965 million in a seasonally weak quarter.

The CFO also added that in-line with their capital allocation policy, Infosys successfully completed the largest ever buyback of Rs 18,000 crore and paid out interim dividend to shareholders.