Infosys Grows Q4 Profit By a Fifth as AI Dominates Deal Wins

Infosys reported revenue of $5.04 billion for the fourth quarter of FY26, registering a 4.1% year-on-year growth in constant currency, even as revenue declined 1.3% sequentially, reflecting continued volatility in enterprise spending in the era of artificial intelligence.

In rupee terms, the IT services giant earned ₹46,402 crore, a 13.4 YoY increase and 2% growth sequentially. The company reported a 21% year-on-year rise in consolidated profit to ₹8,501 crore for the quarter.

For the full fiscal year, Infosys crossed the $20 billion revenue milestone, reporting $20.16 billion in FY26 revenue, a 3.1% growth in constant currency. In rupee terms, it earned ₹1.78 lakh crore—up 9.6% from a year ago.

Over the year, Infosys grabbed $14.9 billion in large deal wins in FY26, with AI dominating the partnerships. 

It collaborated with Anthropic for automated workflows, accelerated software delivery, and agentic AI solutions. Its partnership with ExxonMobil saw the development and deployment of high-efficiency cooling systems that can meet the growing demands of AI and high-performance computing workloads. Meanwhile, its collaboration with Intel and Cursor helped enterprises build and scale AI-powered digital solutions. 

“The simplicity and strength of our AI services strategy across six areas is gaining traction in the market, further strengthened by strong ecosystem AI partnerships enabling clients to get value from AI,” CEO and MD Salil Parekh said in a statement.

“Working closely with Infosys allows us to bring the power of Intel’s AI hardware ecosystem to enterprises globally. Together, we are delivering performance-optimised, energy-efficient, and open AI solutions that clients can deploy wherever their workloads reside—from data centres to the cloud to the edge,” said Lip-Bu Tan, CEO at Intel, in a statement.

Infosys’ financial services revenue dominated the field in Q4, with the company earning ₹12,976 crore—up more than ₹1,300 crore from a year earlier. While all other segments saw growth during the quarter, the communications vertical—encompassing telecom OEM and media—grew almost 20% YoY to ₹5,752 crore.

“Savings from Project Maximus enabled us to invest in strategic areas like talent, AI and sales & marketing”, said CFO Jayesh Sanghrajka, referring to the margin improvement plan aimed at optimising costs through automation and strategic hiring. 

Infosys struck a cautious tone for the year ahead, guiding for revenue growth of 1.5–3.5% in constant currency for FY27, with operating margins expected to remain in the range of 20–22%.

“We see a large addressable market for AI services across the six areas that we mentioned, AI strategy, engineering, data, process, legacy, modernisation, physical AI and trust with our Topaz fabric platform for AI and a COBOL platform for cloud,” the CEO noted.

Referring to Anthropic’s Mythos model, CEO Parekh said it has revealed a broader range of vulnerabilities in AI systems than previously anticipated. He added that while such weaknesses are not unique to one model, the real issue lies in how these systems are deployed and tested.

He added that this could also create new opportunities for Infosys, as clients increasingly look for ways to identify, mitigate, and rapidly secure such vulnerabilities, and the company is exploring capabilities in this area to help enterprises strengthen their AI systems and respond more effectively to emerging risks.

The company said it plans to hire 20,000 freshers in FY27, similar to its announcement last year. However, on a sequential basis, the company’s headcount has declined to 328,594 from 337,034 in the December quarter—a decline of 8,440.

“As we look ahead to the financial year 2027, we see large opportunities in AI services. We also see continued competitive intensity, and we see an AI productivity impact. A combination of these things, with a clear AI strategic roadmap and a real-world toolkit of Topaz Fabric, we are well-positioned to support a client's transformation, technology and operations objectives,” Parekh said during the press briefing.

On reports of a leadership change, Parekh declined to comment. Earlier, ET had reported that Infosys’ board was reviewing a two-year extension to Parekh’s term.

The company also announced a final dividend of ₹25 per share, amounting to ₹37,500 crore returned to shareholders for FY26.

Infosys closed the trading day 2.9% lower on the NSE on April 23, with the share price at ₹1,231.8 apiece.