Infosys Q4 net profit jumps 21% on AI momentum

India’s second largest IT services exporter Infosys reported a 20.9% increase in net profit in Q4 FY26, beating market expectations as the company retained the growth momentum driven largely by artificial intelligence (AI) despite the headwind from ongoing tension in the Middle East.

Net profit for the fourth quarter (January to March) was Rs 8,501 crore, up from Rs 7,033 crore registered in the same period a year ago. The revenue for the fourth quarter came in at Rs 46,402 crore, which was a year-on-year growth of 13.4%.

“We delivered a resilient performance in FY26 with growth of 3.1% with strong large deal wins of $14.9 billion, reflecting the robustness of our enterprise AI value proposition and market share gains in large transformation opportunities,” said Infosys CEO Salil Parekh.

“The simplicity and strength of our AI services strategy across six areas is gaining traction in the market, further strengthened by strong ecosystem AI partnerships enabling clients to get value from AI,” he added.

While Infosys did not disclose its revenue share coming from AI services, it said momentum remained strong. However, the CEO remarked that in certain areas there was compression in revenues due to AI, but this was being compensated with growth in other segments.

Infosys has guided to a revenue growth of 1.5-3.5% in US dollar terms for the current financial year.

During the quarter, Infosys saw all round growth across segments and geographies. Both the North America and Europe geographies showed positive traction for the company. In terms of business verticals, financial services and energy segments turned in positive numbers for the company.

Infosys also managed to maintain its operating profit margins at 21% and expects to maintain this level for the current fiscal.

Infosys CFO Jayesh Sanghrajka said, “FY 26 was a year of disciplined execution and financial resilience reflecting in 21% adjusted operating margin and healthy free cash flow of $3.7 billion. Savings from Project Maximus enabled us to invest in strategic areas like talent, AI and sales and marketing. We remain focused on margins and cash generation as we navigate an evolving macro environment.”

However, on the human resources front, the company had not so positive news as its overall employee headcount was down by 8,440 people to touch 328,594 in the fourth quarter as compared to 337,034 in the third quarter. The company attributed this decline to the flexibility in its employee matrix as it remarked that over the last one year, it had added 5,016 people.

Sanghrajka remarked that the company had onboarded more than 20,000 freshers in FY26 and expects a similar intake in the current financial year.