Infosys Q4FY26 Results: Infosys ADR Falls Over 4% Despite 21% YoY PAT Growth; Final Dividend Announced for FY26

Revenue and Profit Growth Remain Strong

Revenue from operations of Infosys in Q4FY26 was ₹46,402 crore, which indicates a YoY growth rate of 13.38% as opposed to ₹40,925 crore, while the QoQ growth rate was 2.03% when compared to ₹45,479 crore in Q3FY26.

PAT came in at ₹8,509 crore, marking a 20.89% increase year-on-year (YoY) over ₹7,038 crore while showing a growth rate of 27.65% on a quarter-on-quarter basis (QoQ) from ₹6,666 crore. Additionally, there was another figure for PAT that stood at ₹8,501 crore, posting a YoY increase of 20.87% and a QoQ increase og 27.75%.

Earnings per Share (EPS) amounted to ₹21.01 as compared to ₹16.17 in the preceding quarter, showing a positive trend in earnings.

Margins and Cost Structure

Quarterly profit before tax (PBT) was recorded at ₹10,797 crore, representing an increase of 2.65% on the previous figure of ₹10,518 crore. Overall, total expenses were recorded at ₹36,764 crore, and the major share in expenses comes from employee benefits, recorded at ₹24,688 crore.

The total depreciation and amortization amount increased to ₹1,424 crore. Other income was reported at ₹1,159 crore, backed by interest income and taxes adjustments.

FY26 Annual Performance Shows Stability

In FY26, the revenue of Infosys was ₹1,78,650 crore, growing by 9.61% from the previous year which recorded ₹1,62,990 crore.

The PAT was ₹29,474 crore, growing by 10.18% year-over-year against ₹26,750 crore. The PBT of the firm was ₹41,284 crore, showcasing that the earning of Infosys is consistently stable in tough macroeconomic conditions.

Also, there was an exception in FY26 of ₹1,289 crore due to labour laws.

Segment-Wise Performance

The Financial Services business segment retained its position as the biggest contributor to the total revenue with ₹12,976 crore in revenue. The second largest contributor was the Manufacturing business segment with ₹7,358 crore. Other contributors included Energy, Utilities & Resources contributing ₹6,114 crore. Retail made ₹5,958 crore and Communication ₹5,752 crore.

Strategic Deals and AI Collaborations

Infosys also maintained its efforts to implement an AI-first approach via collaborations all around the globe. Some of the major organizations that the organization collaborated with include Citizens, ExxonMobil, Crocs, Incora, and ABN AMRO Bank.

Other collaborations include Anthropic, Intel, Cursor, and Cognition. It is also worth noting the collaboration with the University of Nottingham and Finacle as well. These examples indicate the diverse nature of Infosys's growth strategy.

Dividend Announcement and Shareholder Returns

A final dividend of ₹25 per share was proposed by the board for the financial year ending FY26. When combined with the interim dividend of ₹23 per share, the aggregate dividend distribution is ₹48 per share.

The final dividend record date is set for June 10, 2026, and its payment date is June 25, 2026. Overall, Infosys distributed more than ₹37,500 crore through dividends and share repurchases in FY26.

FY27 Guidance Remains Conservative

Infosys offered a conservative forecast for FY27, projecting revenue growth between 1.5% and 3.5%, adjusted for foreign exchange effects. The operating margin guidance was kept unchanged at 20% to 22%.

Such conservative projections can be attributed to persistent macroeconomic risks and prudent customer spending behaviors, which have probably led to an unfavorable market response despite solid fourth-quarter performance.

Conclusion

Infosys had a very good Q4FY26 result with a double-digit increase in both its top and bottom lines along with steady margins and excellent deal successes. Despite these impressive results, Infosys shares were impacted by poor investor sentiment, cautious FY27 outlook, and overall industry pressure. Infosys is fundamentally sound with a definite focus on growing through AI, but the stock price may be volatile in the short term due to global economic conditions.