Infosys Q1 Results Today: Brokerages Expectations, Dividend, Other Key Updates To Watch Out For

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5 days ago

Infosys is set to announce its Q1FY26 earnings today (July 23), with analysts expecting a stable performance
Infosys Q1FY26 Earnings Today: Infosys is set to announce its Q1FY26 earnings today (July 23), with analysts expecting a stable performance, buoyed by strong deal momentum, a recovery in the BFSI segment, and strategic investments in generative AI. However, wage hikes and acquisition-related expenses may weigh on margins in the near term.
In a regulatory filing, the IT major stated that it will publish its results at approximately 3:45 PM, followed by a press conference at 4:15 PM and an investor/analyst call at 5:30 PM. The results will be available on the BSE and the company's investor relations website, with the press event also streamed live.
Large Deal Wins Analysts expect Infosys to report strong large deal ramp-ups and a healthy pipeline, which will remain a key driver of revenue and future growth.
BFSI Outlook A recovery in BFSI spending, especially from US banks, is seen as a key tailwind. Brokerages note that the segment is emerging as a bright spot for the company.
Margins Under Pressure Margin pressures are expected due to wage hikes and the integration costs from recent acquisitions like MRE Consulting and Missing Link. However, Infosys is likely to stay within its guided EBIT margin range of 20–22%, supported by operational efficiencies.
Generative AI Investment Infosys continues to double down on generative AI initiatives, which analysts say could become a significant long-term growth lever.
Brokerage Expectations
Anand Rathi:
Infosys is expected to outperform peers in Q1FY26, backed by early signs of IT recovery and strength in the BFSI vertical. 'Positive cues from US banks and deal wins position Infosys and select mid-tier peers like LTIM and Mphasis for a strong quarter," the brokerage noted.
Axis Securities:
The firm expects QoQ revenue growth of 2.6%, aided by more working days and BFSI revival. However, operating margins are seen declining 120 bps QoQ due to wage hikes and elevated onsite costs. The brokerage also anticipates an upward revision in Infosys's FY26 revenue guidance to 1–3%, from the earlier 0–3% range.
Q4FY25 Recap
In Q4FY25, Infosys reported an 8% YoY rise in revenue to Rs 40,925 crore, while net profit declined 11.7% YoY to Rs 7,033 crore. Operating margins came in at 21%. The company reported $2.6 billion in large deal wins during the quarter, bringing FY25 total deal wins to $11.6 billion across 96 contracts — 56% of which were net new.
The board had also recommended a final dividend of Rs 22 per share for FY25.
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