Infosys Q1 results: Profit up 12% YoY; announces new CEO designate; key takeaways of June-quarter earnings | Stock Market News
Infosys Q1 results: India's second-largest IT company by market capitalisation, Infosys, on Thursday, 23 July, reported a 12.3% year-on-year (YoY) rise in consolidated profit to ₹7,769 crore for the April-June quarter of the financial year 2026-27 (Q1FY27). In the same quarter of the previous financial year, the company's profit was ₹6,921 crore.
However, sequentially, or on a quarter-on-quarter basis, the company's profit declined 8.6% from ₹8,501 crore in Q4FY26.
Revenue from operations for Q1FY27 stood at ₹48,211 crore, up 14% YoY and 3.9% QoQ. In Q1FY26, Infosys' revenue was ₹42,279 crore, while in Q4FY26, it was ₹46,402 crore.
Meanwhile, the company announced the appointment of Ashiss Kumar Dash as CEO designate of the company. He will be appointed as Infosys CEO and Managing Director on 1 April 2027 for a five-year term.
“The board is delighted to appoint Dash as CEO designate. Our industry is entering a period of considerable change. The board was clear that our next CEO needed to combine the ability to drive bold transformation with the judgment to preserve the values and customer trust that have always distinguished Infosys. It gives me great pleasure that we have an internal leader as our next CEO," said Nandan Nilekani, Chairman of the Board, Infosys.
"Salil has been instrumental in the turnaround of the company, establishing its leadership in the digital era, and laying the foundation for a strong and differentiated AI strategy. He will continue to lead the company until 31 March 2027, and work closely with Dash to ensure a seamless leadership transition," said Nilekani.
Let's take a look at the five key highlights from Infosys' June-quarter scorecard:
The company's revenue in Q1FY27 rose 2.4% YoY and 1% QoQ in constant currency (CC) terms. EBIT increased by 15.4% YoY and 4.3% QoQ to ₹10,163 crore, while EBIT margin came at 21.1%, up 0.3% YoY and 0.1% QoQ. Basic EPS stood at ₹19.19, rising 14.9% YoY.
“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, Infosys.
“We are accelerating investments in AI, talent, and platforms to drive future growth and remain committed to improving productivity, expanding operating leverage and maintaining the financial flexibility needed to capitalise on emerging opportunities while delivering sustainable shareholder value,” Sanghrajka said.
According to the company's exchange filing, Infosys' revenue from the financial services segment increased by 2.4% YoY in CC terms, while that of the life sciences segment jumped 24% YoY.
The segment of 'energy, utilities, resources and services' also saw a 1.3% YoY growth, while communication also grew 1.3% YoY in CC. The 'hi-tech' segment's revenue rebounded, rising 2.4% YoY. Retail segment's revenue declined by 1.8% YoY in CC.
Among key geographies, revenue from North America grew by 3.2% YoY in CC, while Europe also grew by 2.8% YoY in CC. On the other hand, revenue from the 'rest of the world' declined by 1.6%, and that of India shrank 4.2% YoY in CC terms.
Infosys' large deal TCV (total contract value) stood at $3.6 billion in Q1FY27, compared to $3.2 billion in Q4FY26.
“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.
The number of employees declined by 52 during the June quarter, as by the end of Q1FY27, the total number of Infosys employees was 3,28,062 compared to 3,28,594 by the end of Q4FY26.
The last-twelve-month voluntary attrition in the IT services stood at 13% compared to 12.6% in Q4FY26 and 14.4% in Q1FY26.
Infosys trimmed its FY27 guidance slightly. It now expects its revenue growth in the range of 1.5% to 3% in constant currency. In its earlier guidance while reporting Q4FY26 results, it had guided a revenue growth of 1.5% to 3.5%.
However, the operating margin guidance is maintained at 20%-22% range.
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