Infosys becomes the only largecap IT firm with constant currency revenue growth in Q1

In a quarter marked by subdued performance across the Indian IT sector, Infosys has emerged as the only largecap IT company to report sequential revenue growth in constant currency terms during the April-June period (Q1 FY26).The Bengaluru-headquartered company posted a 2.6% quarter-on-quarter growth in constant currency revenue, setting it apart from its peers in the Big 5 IT pack, including TCS, Wipro, HCLTech, and Tech Mahindra, all of whom reported declines.
Rival Tata Consultancy Services (TCS) reported the steepest fall, with a 3.3% drop in constant currency revenue from the March quarter. Wipro followed with a 2% decline, while Tech Mahindra and HCL Technologies reported revenue contractions of 1.4% and 0.8%, respectively.

In the post-earnings conference call, Infosys CEO Salil Parekh said that based on the company’s performance during the quarter and its outlook, revenue growth guidance has been revised to 1-3%.
The 2.6% constant currency growth in Q1 includes a 40 basis points contribution from acquisitions, which is expected to have a similar impact on full-year guidance.On expected lines, Infosys has raised the lower end of its financial year 2026 constant currency revenue growth guidance. The IT firm now sees FY26 revenue growth to be between 1% and 3% from the earlier guidance of 0% to 3%.

The margin guidance has been maintained. Infosys has maintained its financial year 2026 margin guidance to be between 20% to 22%, which is what it had guided for previously.

Of the 49 analysts tracking Infosys, 35 of them have a ‘Buy’ recommendation, 11 of them say ‘Hold’, while three have a ‘Sell’ rating.

Shares of Infosys have witnessed a sharp fall ahead of earnings announcement. The stock, which was trading with gains of up to 0.7% for a better part of the trading day, was trading 1.2% lower, witnessing a sharp downmove in the last few minutes of the trading session.