Strong Q3 Performance: Sequential Revenue Growth of 0.6% in CC, Large Deal Wins of $4.8 billion

Revenue Guidance for FY 26 revised to 3.0%-3.5%

BENGALURU, India, Jan. 14, 2026 /PRNewswire/ -- Infosys (NSE: INFY), (BSE: INFY), (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $5,099 million in Q3 revenues, year on year growth of 1.7% and sequential growth of 0.6% in constant currency. Reported IFRS operating margin was at 18.4%. Adjusted¹ operating margin increased 0.2% sequentially to 21.2%. 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%. Headcount increased by 5,043.

Revenues for YTD Dec'25 grew at 2.8% year on year in constant currency. Reported IFRS operating margin was at 20.0%. Adjusted operating margin was at 21.0%.

"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. "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," he added.

0.6% QoQ1.7% YoY CC Growth

18.4% Reported21.2% Adjusted Operating Margin

6.6% Reported 11.5% Adjusted YTD EPS Increase (₹ terms)

$4.8 Bn Large Deal TCV(57% Net New)

$0.9 Bn $1 Bn AdjustedFree cash flow(FCF)

Guidance for FY26:

²

Key highlights:

For the quarter ended December 31, 2025 Revenues in CC terms grew by 1.7% YoY and 0.6% QoQReported IFRS revenues at $5,099 million, growth of 3.2% YoY Reported IFRS operating margin at 18.4%; Adjusted operating margin at 21.2% Reported IFRS Basic EPS at $0.18; adjusted Basic EPS at $0.21 FCF at $915 million; adjusted FCF at $965 million; Adjusted FCF conversion at 112.8% of adjusted net profit

For nine months ended December 31, 2025 Revenues in CC terms grew by 2.8% YoY Reported IFRS revenues at $15,117 million, growth of 3.9% YoY Reported IFRS operating margin at 20.0%; Adjusted operating margin at 21.0% Reported IFRS Basic EPS at $0.58; adjusted Basic EPS at $0.60 FCF at $2,900 million; adjusted FCF at $2,950 million; Adjusted FCF conversion at 117.8% of adjusted net profit

^{1.  'Adjusted' financial measures presented in this release are non-IFRS financial measures that exclude the impact of the provisions arising from the notifications by Government of India on Labour Codes for quarter and nine months ended December 31, 2025 and are further described in this release. 2.  Operating margin guidance for FY26 excludes the adjustment with respect to Labour Codes of $143 million in the current quarter.}

"Our 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," said Jayesh Sanghrajka, CFO. "In line with our capital allocation policy, we successfully completed the largest ever buyback of `18,000 crore and paid out interim dividend to shareholders," he added.

Client Wins & Testimonials

Recognitions & Awards

Read more about our Awards & Recognitions here.

About Infosys

Infosys is a global leader in next-generation digital services and consulting. Over 330,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities. We enable clients in 63 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, as they navigate their digital transformation powered by cloud and AI. We enable them with an AI-first core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem. We are deeply committed to being a well-governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace.

Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next.

Safe Harbor

Certain statements in this release concerning our future growth prospects, our future financial or operating performance, the McCamish cybersecurity incident, and the United States H-1B visa program are forward looking statements intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, increased competition for talent, our ability to attract and retain personnel, increase in wages, investments to reskill our employees, our ability to effectively implement a hybrid working model, economic uncertainties and geo-political situations, technological disruptions and innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, our corporate actions including acquisitions, the outcome of pending litigation, the amount of any additional costs resulting directly or indirectly from the McCamish cybersecurity incident, the outcome of the US government investigation, the timing, implementation, duration and effect of the September 19, 2025 proclamation signed by the president of the United States related to the H-1B visa program, and the effect of current and any future tariffs. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2025. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.

 

Infosys Limited and Subsidiaries
Extracted from the Condensed Consolidated Balance Sheet under IFRS as at:                                             (in $ million)
Particulars	December 31, 2025	March 31, 2025
ASSETS
Current assets
Cash and cash equivalents	2,216	2,861
Current investments	769	1,460
Trade receivables	4,020	3,645
Unbilled revenue	1,477	1,503
Other current assets	1,583	1,890
Total current assets	10,065	11,359
Non-current assets
Property, plant and equipment and Right-of-use assets	2,128	2,235
Goodwill and other Intangible assets	1,636	1,505
Non-current investments	990	1,294
Unbilled revenue	224	261
Other non-current assets	910	765
Total non-current assets	5,888	6,060
Total assets	15,953	17,419
LIABILITIES AND EQUITY
Current liabilities
Trade payables	537	487
Unearned revenue	1,235	994
Employee benefit obligations	384	340
Other current liabilities and provisions	3,399	3,191
Total current liabilities	5,555	5,012
Non-current liabilities
Lease liabilities	646	675
Other non-current liabilities	465	477
Total non-current liabilities	1,111	1,152
Total liabilities	6,666	6,164
Total equity attributable to equity holders of the company	9,233	11,205
Non-controlling interests	54	50
Total equity	9,287	11,255
Total liabilities and equity	15,953	17,419

 

Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for:
(In $ million except per equity share data)
Particulars	3 months ended December 31, 2025	3 months ended December 31,2024	9 months ended December 31, 2025	9 months ended December 31, 2024
Revenues	5,099	4,939	15,117	14,547
Cost of sales	3,660	3,444	10,593	10,103
Gross profit	1,439	1,495	4,524	4,444
Operating expenses:
Selling and marketing expenses	257	218	769	671
Administrative expenses	245	224	725	693
Total operating expenses	502	442	1,494	1,364
Operating profit	937	1,053	3,030	3,080
Other income, net of finance cost	98	90	308	249
Profit before income taxes	1,035	1,143	3,338	3,329
Income tax expense	287	337	942	981
Net profit (before non-controlling interest)	748	806	2,396	2,348
Net profit (after non-controlling interest)	747	804	2,393	2,345
Basic EPS ($)	0.18	0.19	0.58	0.57
Diluted EPS ($)	0.18	0.19	0.58	0.56

NOTES:

a)  The above information is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter and nine months ended December 31, 2025, which have been taken on record at the Board meeting held on January 14, 2026.

b)  As the quarter and nine months ended figures are taken from the source and rounded to the nearest digits, the quarter figures in this statement added up to the figures reported for the previous quarters might not always add up to the nine months ended figures reported in this statement.

Reconciliation of Reported IFRS financial measures to Adjusted non-IFRS financial measures for 3 months ended
(in $ million except per equity share data)
	December 31, 2025			December 31, 2024
	Reported IFRS	Adjustment forLabour Codes1	Adjusted  non- IFRS	Reported IFRS
Operating profit	937	143	1,080	1,053
Operating margin (%)	18.4	2.8	21.2	21.3
Profit before income taxes	1,035	143	1,178	1,143
Income tax expense	287	35	322	337
Net profit (after non-controlling interest)	747	108	855	804
Basic EPS ($)	0.18	0.03	0.21	0.19
Reconciliation of additional financial measures to Adjusted financial measures for 3 months ended
(in $ million)
	December 31, 2025			December 31, 2024
	Reported	Adjustment for Labour Codes	Adjusted	Reported
Operating cash flow	962	50	1,012	1,325
Capital expenditure	47	-	47	62
FCF – non-IFRS	915	50	965	1,263
FCF as a % of Net profit	122.5		112.8	156.6
Reconciliation of Reported IFRS financial measures to Adjusted non-IFRS financial measures for 9 months ended
(in $ million except per equity share data)
	December 31, 2025			December 31, 2024
	Reported IFRS	Adjustment for Labour Codes1	Adjustednon- IFRS	Reported IFRS
Operating profit	3,030	143	3,173	3,080
Operating margin (%)	20.0	1.0	21.0	21.2
Profit before income taxes	3,338	143	3,481	3,329
Income tax expense	942	35	977	981
Net profit (after non-controlling interest)	2,393	108	2,501	2,345
Basic EPS ($)	0.58	0.02	0.60	0.57
Reconciliation of additional financial measures to Adjusted financial measures for 9 months ended
(in $ million)
	December 31, 2025			December 31, 2024
	Reported	Adjustment for Labour Codes	Adjusted	Reported
Operating cash flow	3,102	50	3,152	3,375
Capital expenditure	202	-	202	179
FCF – non-IFRS	2,900	50	2,950	3,196
FCF as a % of Net profit	121.0		117.8	136.1

NOTE:

www.infosys.com

IFRS-INR Press Release:https://www.infosys.com/investors/reports-filings/quarterly-results/2025-2026/q3/documents/ifrs-inr-press-release.pdf

Fact sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2025-2026/q3/documents/fact-sheet.pdf

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