Infosys Limited Revenue & Financials

The margin story is more interesting than the revenue story. Revenue crossing $20 billion in FY2026 was inevitable given the deal pipeline — the real question was whether Infosys could maintain 20%+ operating margins while investing heavily in AI, absorbing India's new Labour Codes (which added ~$155 million in gratuity and leave liabilities), and navigating currency headwinds. It did. Operating margin came in at 20.3%, down slightly from 21.1% the prior year, but the compression was almost entirely from the one-time Labour Codes impact rather than structural deterioration. Net income hit $3.3 billion, up 4.9% year-over-year. Earnings per ADS rose to $0.81 from $0.76. Not explosive growth, but steady compounding in a business that's simultaneously trying to transform its delivery model. The company also benefited from $46 million in interest income and $93 million in tax provision reversals from favorable rulings on old assessment years — not recurring, but helpful. The large deal numbers tell the forward-looking story. $14.9 billion signed in FY2026, with $3.2 billion in Q4 alone. More telling: 67% of Q4 large deals were new or net-new engagements, not renewals. Infosys is winning new logos, not just retaining old ones. The NHS contract — $1.6 billion over 15 years — is the single largest in company history and proves Infosys can compete at the very top of the market. The headcount-revenue divergence in Q4 is the number analysts should be watching. Revenue grew while headcount dropped by 8,440 sequentially to 328,594. If that trend holds — more revenue from fewer people — it validates the AI-driven productivity thesis and suggests margins could expand meaningfully over the next 2-3 years. Market cap sits at roughly $49 billion, down from a $100 billion+ peak in early 2022. The discount reflects AI disruption fears more than operational reality.