Infosys Q1 Earnings: AI Revenue Reaches 8.2% as Net Profit Hits $820 Million

Infosys (NSE, BSE, NYSE: INFY), a global leader in AI-first business consulting and technology services, reported its Q1 results for the period ending June 30, 2026. The company posted revenues of $5,082 million, representing year-over-year growth of 2.4% and sequential growth of 1.0% in constant currency. Operating margin stood at 21.1%, a sequential increase of 0.2%, while earnings per share grew 14.9% year-on-year in rupee terms. Net profit climbed to $820 million, and free cash flow reached $955 million, with a conversion rate of 116.5% of net profit.

AI revenues accounted for 8.2% of total revenue in Q1, highlighting the rapid conversion of AI momentum into tangible financial results. The company secured large deal wins totaling $3.6 billion in total contract value, with 61% coming from net new business.

“AI momentum is now rapidly converting into revenue, which demonstrates how Infosys’ differentiated enterprise AI value proposition is translating into consistent market share gains. Strong large deal wins, powered by Infosys Topaz, reinforce client confidence in our ability to be the strategic partner of choice for AI transformation driving tangible business value,” said Salil Parekh, CEO and MD.

Infosys revised its FY27 revenue growth guidance to 1.5%-3.0% in constant currency and retained its operating margin guidance at 20%-22%.

Key Financial Highlights (Q1 FY27)

• Revenues in constant currency: +2.4% YoY, +1.0% QoQ
• Reported revenues: $5,082 million (+2.8% YoY, +0.8% QoQ)
• Operating margin: 21.1% (+0.3% YoY, +0.2% QoQ)
• Basic EPS: $0.20 (+3.7% YoY)
• Free cash flow: $955 million (FCF conversion: 116.5%)

“Our resilient margins of 21.1% and consistent strong cash generation reflect the strength of our business model, disciplined execution and continued focus on operational excellence in a challenging business environment,” said Jayesh Sanghrajka, CFO.

Major Client Wins and Partnerships

Infosys announced several strategic collaborations and renewals during the quarter:

• Mercedes-Benz Group AG: Renewed a long-standing partnership to move one of the automotive sector’s largest hybrid cloud and data center operations to an AI-led operating model, leveraging Infosys Topaz and Infosys Cobalt.
• Nokia: Collaboration to strengthen product engineering capabilities across core networks, accelerating innovation and execution efficiency.
• Bendigo Bank: A seven-year collaboration to build a future-ready bank, enhancing digital experiences for 2.9 million customers.
• DNB Bank ASA: Expanded collaboration to modernize financial crime operations using NICE Actimize’s X Sight Enterprise platform.
• Sentara: Collaboration to scale enterprise AI adoption in healthcare services.
• GlobalFoundries: Expanded collaboration to accelerate AI-driven IT operations transformation.
• Spark New Zealand: Accelerating AI-led transformation across technology delivery and digital operations with Infosys Topaz.
• Cox Communications: Modernization of technology operations to enhance digital customer experiences.
• Ventura Foods: Enterprise transformation using Oracle Fusion Cloud and Infosys Topaz for an AI-first value chain strategy.
• OpenAI: Collaboration to accelerate enterprise AI transformation, focusing on deploying Codex for large-scale software modernization and automation.
• Harness: Partnership to unlock AI value for enterprise transformation, addressing the “AI Velocity Paradox.”
• Finacle Deals: Sterling Bank of Asia (enhancing employee and customer experience), Bank of Sydney (successful go-live of Finacle Digital Banking Suite on AWS).

Industry Recognitions and Awards

Infosys received multiple accolades in Q1, including ranking #1 on LinkedIn Top Companies in India for 2026, being recognized as a Leader in Gartner Magic Quadrant for Cloud ERP Services, and winning the Bronze Stevie Award for Innovation in Investor Relations. Infosys Finacle was rated a Leader in The Forrester Wave for Digital Banking Engagement Platforms and ranked #1 in 22 categories by IBS Intelligence.

For a full list of awards and recognitions, visit the official Infosys newsroom.