Infosys Limited American Depositary Shares
INFY · NYSE
Next quarter
Reports Oct 15, 2026.
Consensus is $0.21 EPS for Sep 2026 across 3 estimates, ranging $0.21 to $0.21.
INFY Jun 2026
- 4.76%
- +4.12%
- $0.21
- $0.20
- —
- —
Highlights
- Revenue: Consolidated revenue rose 2.9% year over year to $5,082 million, or 0.8% sequentially; in rupee terms, revenue increased 14.0% year over year and 3.9% from the March quarter to ₹48,211 crore.
- EPS: Diluted EPS was $0.20, below the $0.21 consensus estimate by 4.76%; EPS was $0.23 in the prior quarter and $0.19 a year ago.
- Operating margin: Operating profit increased to $1,072 million from $1,055 million sequentially and $1,028 million a year earlier, lifting the margin to 21.1% from 20.9% and 20.8%, respectively.
- Net profit: IFRS net profit was $820 million, down 10.9% sequentially but up 1.4% year over year, as income tax expense rose to $343 million from $248 million in March and $329 million a year earlier.
- Vertical growth: Life Sciences was the fastest-growing business, with revenue up 39.9% year over year to ₹3,842 crore; Financial Services grew 14.1% to ₹13,463 crore and Communication grew 13.6% to ₹5,791 crore.
- Acquisitions: Infosys completed two US acquisitions for total consideration of $439 million, including Stratus Global for $74 million and Optimum Achieve, including Optimum Healthcare IT, for $365 million.
- Leadership succession: Ashiss Kumar Dash was appointed CEO Designate effective July 23, 2026, with the board intending to appoint him CEO and managing director from April 1, 2027.
- Liquidity and dividend: Cash and current investments stood at $3,124 million versus $3,706 million at March 31, after payment of the ₹25 per-share final dividend on June 25.
Analysis
Infosys delivered a modestly better operating quarter but a softer bottom line. Revenue reached $5,082 million, up 2.9% year over year and 0.8% sequentially, while operating margin improved to 21.1% from 20.8% a year earlier and 20.9% in the March quarter. However, diluted EPS of $0.20 missed the $0.21 consensus estimate by 4.76% and declined from $0.23 sequentially. Net profit was $820 million, only 1.4% above last year and 10.9% below the prior quarter, primarily reflecting a higher tax charge of $343 million.
The quarter was defined by broad-based vertical growth, with Life Sciences accelerating sharply and Financial Services remaining the largest business. Infosys also expanded its capabilities through $439 million of US acquisitions, focused on insurance technology and healthcare transformation. The balance sheet absorbed the acquisition outlays and the ₹25-per-share final dividend, with cash and current investments falling to $3,124 million from $3,706 million at March 31. Finally, the company began a leadership transition by naming Ashiss Kumar Dash CEO Designate, with the intended handover scheduled for April 1, 2027.
Revenue and margins
The top line continued to grow, though at a measured pace in constant reported-dollar terms. Revenue of $5,082 million increased 2.9% from $4,941 million a year earlier and 0.8% from $5,040 million in the March quarter. Rupee revenue was ₹48,211 crore, up 14.0% year over year and 3.9% sequentially. Gross profit rose to $1,600 million from $1,525 million a year earlier, while operating profit increased 4.3% year over year to $1,072 million. The resulting 21.1% operating margin was 30 basis points above last year and 20 basis points above the prior quarter.
Tax and net profit
The improvement in operating performance did not flow through to quarterly earnings. Profit before tax was $1,163 million, slightly below $1,168 million in the March quarter but above $1,138 million a year earlier. Income tax expense increased to $343 million from $248 million sequentially and $329 million year over year, reducing net profit to $820 million. On the Indian accounting presentation, consolidated profit attributable to owners was ₹7,769 crore, versus ₹8,501 crore in the prior quarter and ₹6,921 crore a year earlier.
Vertical performance
- Life Sciences: Revenue rose 39.9% year over year to ₹3,842 crore, although segment profit declined to ₹619 crore from ₹659 crore sequentially.
- Financial Services: The largest vertical grew revenue 14.1% year over year to ₹13,463 crore and segment profit 23.2% to ₹3,662 crore.
- Communication: Revenue increased 13.6% to ₹5,791 crore, with segment profit up 34.1% to ₹1,180 crore.
- Manufacturing and EURS: Manufacturing revenue grew 12.7% year over year to ₹7,668 crore, while Energy, Utilities, Resources and Services revenue rose 12.4% to ₹6,452 crore.
- Retail and Hi-Tech: Retail revenue increased 9.2% to ₹6,172 crore and Hi-Tech grew 12.6% to ₹3,710 crore, but Retail segment profit fell to ₹1,701 crore from ₹1,811 crore sequentially.
Acquisition expansion
Infosys used the quarter to deepen its US industry capabilities. It acquired Stratus Global, an insurance technology partner serving property and casualty insurers and managing general agents, for consideration of $74 million including earnouts. It also acquired Optimum Achieve Holdings, including Optimum Healthcare IT, a healthcare digital transformation and consulting firm, for $365 million including earnouts. Combined consideration was $439 million, comprising $368 million of upfront cash and $71 million of estimated contingent consideration, before employee retention and incentive payments.
Leadership transition
The board named Ashiss Kumar Dash CEO Designate effective July 23, 2026, and stated its intention to appoint him CEO and managing director from April 1, 2027, subject to statutory requirements. Salil Parekh remains CEO and managing director during the transition. The company also appointed Nitin Paranjpe vice chairman effective April 30, while independent director Michael Nelson Gibbs retired on July 12 after completing his second term.
