Infosys has announced its Q3 FY26 results, revealing a mixed performance that reflects both challenges and optimism for the IT major. The company reported a 2 percent year-on-year decline in consolidated net profit to Rs 6,654 crore. However, a stronger revenue outlook and improved client demand provided some relief to investors.
Infosys Q3 FY26 Results Overview
Infosys posted revenue of Rs 39,610 crore in the quarter ending December 2025, marking a 1.3 percent sequential increase and a 7.9 percent rise compared to the same period last year. Despite the minor dip in profit, the company raised its full-year revenue guidance to 3 to 3.5 percent in constant currency terms, signaling confidence in deal momentum and client spending recovery.
Revenue Growth Offsets Profit Decline
The company’s revenue growth was largely driven by strong demand in digital transformation services and cloud implementation projects. North America remained the largest contributor to total revenue, while Europe and Asia Pacific markets showed modest growth. The decline in profit was mainly due to higher employee costs and foreign exchange headwinds.
Market Reaction and Stock Performance
Following the announcement, Infosys shares traded with mild volatility as investors weighed the mixed results. Analysts noted that while the profit dip might raise short-term concerns, the upgraded guidance indicates confidence in the company’s execution capabilities. The market largely interpreted the announcement as a stable performance in an otherwise cautious global IT environment.
Key Highlights from the Infosys Q3 FY26 Earnings
- Net profit at Rs 6,654 crore, down 2 percent year-on-year
- Revenue up 7.9 percent year-on-year to Rs 39,610 crore
- Operating margin steady at 20.5 percent
- Revenue guidance raised to 3–3.5 percent for FY26
- Strong deal pipeline and large client renewals across sectors
Investor Takeaway
For long-term investors, the Infosys Q3 FY26 results highlight steady operational resilience despite near-term profitability pressure. The raised guidance and stable margins indicate that the company is navigating macroeconomic uncertainties well. With large deal wins and consistent cash flow, Infosys remains one of the top IT picks for institutional and retail investors alike.
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Overall, Infosys’s Q3 FY26 results show that while short-term profits may fluctuate, the long-term growth story of India’s IT sector continues to look strong.
