Infosys Q3 Results: PAT drops 2% year over year to Rs 6,654 crore; company increases revenue projections for FY26

India’s second-largest IT services company Infosys on Wednesday reported a 2% year-on-year (YoY) decline in consolidated net profit to Rs 6,654 crore for the third quarter ended December, compared with Rs 6,806 crore in the year-ago period, even as revenue growth remained strong.

Revenue from operations rose 9% YoY to Rs 45,479 crore during the quarter, driven by steady deal momentum, growth in large contracts and increasing traction in artificial intelligence-led transformation projects.

On a quarter-on-quarter basis, revenue growth remained modest amid seasonal furloughs and continued macroeconomic uncertainty, which has weighed on discretionary technology spending globally.

The company revised its FY26 revenue growth guidance upward to 3–3.5% in constant currency terms, from its earlier forecast, signalling confidence in demand recovery. Infosys, however, retained its operating margin guidance at 20–22%, indicating continued focus on cost discipline and operational efficiency.

“Infosys delivered a strong Q3 performance, demonstrating how our differentiated value propositions in enterprise AI, through Infosys Topaz, are consistently driving higher market share,” said Salil Parekh, chief executive officer and managing director. He added that clients continue to invest in AI, cloud, data and digital transformation initiatives to improve productivity and accelerate decision-making.

During the quarter, Infosys saw healthy deal wins across key verticals, including banking, financial services and insurance (BFSI), retail and manufacturing. The company said demand remained cautious but stable, with clients prioritising projects that offer faster return on investment, particularly in areas such as automation, generative AI and platform modernisation.

The results come at a time when the Indian IT services industry is navigating a structural shift, as AI-led automation and efficiency gains reshape traditional people-based delivery models. While near-term revenue growth remains under pressure, large IT firms are increasingly betting on AI-driven services, cloud migration and large transformation deals to drive medium-term growth.

Infosys is expected to provide further details on deal wins, segment performance, hiring outlook and client demand trends during its post-earnings analyst call later in the day.