Indian tech giant Infosys reported $4.94 billion in revenue for the first quarter of FY26 on July 23. It marked a 3.8% year-on-year growth and 2.6% sequential growth in constant currency.
During a press conference, Infosys CEO Salil Parekh said, “We had a strong start to the financial year.” “Growth was broad-based, with our five large industry groups and major geographies all growing year-on-year in constant currency.”
Parekh added that Q1 performance demonstrates the strength of its enterprise AI capabilities and the success in client consolidation decisions. The company’s large deal wins totalled $3.8 billion for the quarter, with 55% of this amount coming from net new clients.
“We’ve seen good demand for AI agents. We have built 300 agents across business operations and IT areas, and they are now deployed within our clients. These horizontal and vertical agents are helping clients drive faster decisions, improve customer experience, and enhance operational efficiency,” he said.
Parekh stated that enterprise AI deployment across clients involves more than just pilot projects; it includes active implementations where different AI agents are deployed in real-world settings, like supply chains and customer service operations.
“Clients are already seeing tangible productivity gains and enhanced customer experiences,” he shared.
While macroeconomic challenges persist, he said, Infosys is witnessing growing demand for digital transformation, cloud, and evolving enterprise applications. Within enterprise AI, the company is moving beyond productivity gains to offer deeper analytics and business optimisation, unlocking new revenue streams.
Operating margin stood at 20.8%, while cash flow remained robust at $884 million, 109.3% of the quarter’s net profit.
Based on the Q1 performance and current outlook, he said, the company is revising FY26 growth guidance from the earlier 0%–3% range to 1%–3% in constant currency terms. “Our margin guidance remains unchanged at 20%–22%,” Parekh noted.
Jobs, Mysuru, Bench Policy
Regarding jobs, the company has informed that its hiring numbers and overall headcount have remained stable to date. The total number of employees stood at 3.23 lakh, and the attrition rate for the quarter remained at 14.4%.
Jayesh Sanghrajka, chief financial officer at Infosys, said the company’s utilisation is currently at a peak of 85% and they are expecting to follow through the hiring targets of 20,000-plus freshers.
Meanwhile, responding to a question about freshers being let go from its Mysore campus, particularly those from the 2022 batch, Parekh clarified that Infosys follows a well-established, rigorous process for onboarding campus hires.
“Once freshers are recruited, they undergo foundational training at the Mysore facility and are required to meet internal assessment benchmarks. Each candidate is given up to three attempts to clear these assessments,” Parekh said. “If they don’t meet the standards by the third attempt, they don’t continue with the company.”
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