Infosys Q4: IT giant's profit declines 12% YoY, firm lowers revenue growth guidance to 0%-3% for FY26

Infosys has lowered its revenue growth guidance to 0%-3% in constant currency terms for the current financial year but maintained operating margin guidance in the range of 20%-22%.

The company had given guidance for revenue growth of 4.5%-5% for financial year 2025. The sharp decline in revenue growth outlook came on the back of uncertain environment for the IT industry, company said in a press briefing.

Infosys' revenue from operations rose 8% annually to ₹40,925 crore from ₹37,923 crore but on a quarter-on-quarter (QoQ) basis revenue declined 2%. In dollar terms, the Bengaluru-based company's fell by 4.2% and in constant currency terms revenue declined by 3.5%.

In dollar terms revenue in fourth quarter came in at $4,730 million, an increase of 4.8% year on year in constant currency and 3.6% in reported terms. Operating margin was at 21.0%, an increase of 0.9% year on year, Infosys said.

"We have built a resilient organization with sharp focus on client-centricity and responsiveness to the market, thanks to the trust of our clients and dedication of our employees. Our performance for the year has been robust in terms of revenues, expansion in operating margins and highest ever free cash generation”, said Salil Parekh, CEO and MD, Infosys.

“Our depth in AI, cloud and digital and strength in cost efficiency, automation, and consolidation position us well for the needs of our clients”, he added.

The company announced a final dividend of ₹22 per share.

"FY25 operating margins expanded by 0.5% which reflects our relentless focus on identifying opportunities for efficiency and executing Project Maximus with discipline, after navigating through multiple headwinds in a challenging macro environment. We delivered the highest ever free cash flows in the history of the company in FY25,” said Jayesh Sanghrajka, CFO.

“The Board has proposed a final dividend of ₹22, which along with the interim dividend, is an increase of 13.2% over last year." he added.

Infosys shares ended 0.51% higher at ₹1,420.20 ahead of its earnings announcement. So far this year, Infosys shares have fallen 24%, data from stock exchanges showed.