New Delhi: Infosys delivered a resilient performance in the December quarter, backed by strong large-deal wins and healthy cash flows, even as revenue growth remained muted and operating margins declined on a reported basis.
The country’s second-largest IT services company reported Q3FY26 revenue of $5.1 billion, registering a 1.7% year-on-year and 0.6% sequential growth in constant currency terms. Reported IFRS operating margin stood at 18.4%, while adjusted margins, excluding the impact of labour code provisions, improved sequentially to 21.2%, the company said after its board meeting held on January 13–14.
Net profit for the quarter came in at ₹6,654 crore, down 2.2% year-on-year, reflecting higher operating expenses, even as revenues in rupee terms rose 8.9% YoY to ₹45,479 crore. Free cash flow remained strong at $915 million, translating into a conversion of over 112% of adjusted net profit, underlining the company’s cash-generating ability in a seasonally weak quarter.
A key positive was deal momentum. Infosys reported large deal total contract value (TCV) of $4.8 billion, with 57% coming from net new deals, providing visibility for future quarters. The company added 5,043 employees during the quarter, taking its total headcount to over 337,000, while attrition moderated to 12.3% on a last-twelve-month basis.
Commenting on the performance, CEO and MD Salil Parekh said Infosys’ growing traction in enterprise AI, led by its Topaz platform, is helping the firm gain market share as clients look to scale AI-led transformation initiatives. CFO Jayesh Sanghrajka highlighted disciplined execution, strong deal wins and capital returns, noting that the company completed its ₹18,000-crore buyback and paid an interim dividend during the period.
Reflecting confidence in demand visibility, Infosys revised its FY26 revenue growth guidance upward to 3–3.5% in constant currency, while maintaining operating margin guidance at 20–22% (excluding labour code adjustments). Analysts said while near-term growth remains modest amid global macro uncertainty, the company’s deal pipeline and focus on AI-led services could support a gradual recovery in growth momentum over the coming quarters.