Infosys Q4 FY26 Results Today: Top Things to Watch 

Stocks of Infosys have witnessed a fall of more than 21% since the start of 2026 YTD due to overall underperformance of the IT sector.

Revenue Expected to Show Modest Sequential Growth

For the March quarter, Infosys is likely to see revenues between $4,989 mn, against $5,099 mn recorded for the preceding quarter, signifying a drop of 2.2% QoQ on a dollar basis. The company’s revenue on a rupee basis is anticipated at ₹46,135 cr, down from ₹45,479 cr for Q3 FY26, signaling an expansion of 1.4% QoQ. Revenue growth of 13% to 14% Y-o-Y is anticipated, aided by strong deal bookings and favorable currency impacts.

Sequentially, revenue growth of about 1% to 2% is expected, influenced by the seasonality effect and fewer billing days, albeit compensated by constant demand in certain sectors and rupee devaluation gains.

Profit Likely to Grow YoY but Decline QoQ

The expected range for Infosys' net profit lies in the band of ₹7,490 crore to ₹7,510 crore, which would represent a 4-5% year-over-year growth but would see a fall of 1-3% on a quarter-over-quarter basis relative to ₹7,625 crore that was recorded in the previous quarter. The company had recorded a net profit of ₹7,218 crore in the same quarter a year back.

In a separate set of projections, PAT is expected to touch ₹7,518 cr, as opposed to ₹6,654 crore in the previous quarter, which would signify a strong 13% growth quarter over quarter, assuming certain factors come into play.

Margins Expected to Remain Broadly Stable

Infosys is projected to post EBIT between ₹9,644 cr and ₹9,793 cr with a slight rise in sequential performance of 1% to 1.6%. The EBIT margin for Infosys is forecasted to stay relatively unchanged between 21.1% to 21.4%, against 21.21% seen in the last quarter, with a shift of 2 to 10 bps.

The margin will benefit from depreciation of the rupee; however, this will get countered by an increase in visas costs, bonuses, and operating costs. The effect of labor law changes is worth ₹1,289 crore and GenAI-driven pressure in pricing is expected to drag profits.

Deal Wins and Demand Environment

It is anticipated that TCV will stay steady within the range of $2 bn to $3.5 bn, although estimates suggest it may fall somewhere between $2.5 bn and $2.75 bn. Nevertheless, the demand for IT worldwide remains low, with customers postponing non-mandatory investments and closing deals.

The industry still confronts challenges associated with macroeconomic instability, geo-political conflicts, and disruption brought about by artificial intelligence (AI).

FY27 Guidance and Management Commentary in Focus

Guidance for Infosys’s FY27 is anticipated with keen interest from investors, and it is expected to be between 2% to 5% constant currency revenue growth, based on comments from the company’s management. The prior expectations of Infosys included FY26 guidance for revenues growth between 3% and 3.5% in constant currency and EBIT margin between 20% and 22%.

The main areas of focus are likely to include any comment regarding the improvement in discretionary spending, effects of generative AI on pricing, inclusion of AI in deals, and the geopolitics affecting Infosys’ business.

Dividend Announcement Expected

Infosys will also declare its final dividend for FY26 at the time of the results announcement. Infosys has a consistent dividend history with the declaration of a total dividend of ₹55,495.40 cr during the past decade ending March 31, 2025.

In FY25, the Infosys dividend amounted to ₹43 per share totaling ₹8,719.20 cr. In line with its policy, the company has been distributing roughly 85% of its cash flows over the previous five years. The dividend yield has been fluctuating from 1.6% to 3.8% with an FY25 yield of 2.74%.

Results Timing and Market Expectations

Results from Infosys will be announced at 3:45 pm IST, and the company will conduct a press meet at 4:30 pm IST and earnings call at 5:30 pm IST. Commentaries by the management in these interactions will provide valuable insights into the demand outlook and margins for FY27.

Outlook

In general, it is anticipated that the financials of the fourth quarter FY26 of Infosys will be a combination of modest growth in revenues, consistent margins, and a minor impact on sequential profitability. Nevertheless, the attention of investors will center around the outlook for FY27 and deals pipeline development.