Infosys Performance Analyzed

Key Points

• Infosys raised revenue growth forecast to 3.0%-3.5% by 2026.
• Net profit dropped 2.2% year-on-year but revenue increased 8.9%.
• New labor laws increased gratuity and leave liabilities significantly.
• Operating profit fell 6.3% year-on-year due to margin decline.
• Large deal wins totaled $4.8 billion, with a 57% net new.
• Client base grew by 73, with attrition rate slightly decreased.

Infosys, a company that helps other businesses with computers and technology, had a mixed quarter in late 2025. They announced they think they’ll grow their business more than they thought before, raising their prediction to 3.0% to 3.5% each year until 2026. This is a good sign because it shows they believe things will get better!

However, their profits weren’t as high as last time. Their profits went down by 2.2% compared to the same time last year. But, they still made more money overall, up 8.9%. It’s like they’re working hard to grow, but some costs are still pushing them back a little.

The government also changed some rules about how companies treat their workers. These new rules, called Labour Codes, are supposed to make things fairer for employees. But, because of these changes, Infosys has a lot more money they owe for things like retirement and extra time off.

This extra money they owe is about $143 million, or Rs 1,289 crore. Because of this, their profits were lower than expected. They made less money before taxes, and their operating profit – that’s how much money they make after paying for their operations – also went down. Their profits were down 9.78% and 6.3% respectively.

Despite these challenges, Infosys is still getting more business. They won a lot of big deals – $4.8 billion worth – and got 57% of those deals from new clients. They are focused on using AI, which is like a super-smart computer program, to help businesses do things better. Their boss, Salil Parekh, believes that Infosys is becoming a leading company for AI, thanks to their skills and how well they can deliver results.

As of the end of 2025, Infosys has 1,949 companies using their services, and they have 337,034 employees. They’re working hard to train their workers so they can use AI effectively. While the attrition rate, which is the percentage of employees who leave, was 12.3%, it’s still a concern.

“Infosys is strategically positioned to drive digital transformation and maximize value for our clients.”