Infosys reports 12.2% Q1 profit rise, AI-led revenue up

Infosys reported a 12.2 per cent year-on-year (Y-o-Y) increase in consolidated net profit to Rs 7,769 crore. This is for the first quarter of FY27 ended June 30, with growth in key segments and AI-led demand.

The growth was supported by stable performance across core segments, including financial services, manufacturing, and technology services. Additionally, demand for AI-led services continued to rise, reflecting a broader shift toward automation and cloud-enabled solutions. Management cited sustained momentum into Q2 as a result of client wins and ongoing digital transformation programs.

Revenue for the quarter rose 14 per cent Y-o-Y to Rs 48,211 crore. It was supported primarily by strong performance in the life sciences and financial services verticals.

On a sequential basis, however, net profit declined 8.6 per cent in the quarter.

Additionally, the company recorded constant-currency growth of 3.2 per cent in the US.

Moreover, it grew 2.8 per cent in Europe, reflecting continued demand from its largest markets.

Commenting on the results, Salil Parekh, Managing Director and Chief Executive Officer, said AI-led transformation initiatives are increasingly contributing to business growth.

The statement reflects how AI-led changes are fueling growth.

AI momentum is converting into revenue. This demonstrates Infosys’ differentiated enterprise AI value proposition translates into steady market share gains. This momentum supports continued growth and client trust across industries, reinforcing our competitive position. The trend aligns with our strategic goals for AI-driven value.

Strong large deal wins, powered by Infosys Topaz, reinforce client confidence. Moreover, they show we are the strategic partner of choice for AI transformation, driving tangible business value, he said. Additionally, we expect these wins to translate into durable long-term partnerships.

The company reported a large-deal total contract value (TCV) of $3.6 billion for the quarter.

Moreover, it rose from $3.2 billion in the prior quarter, indicating sustained momentum in securing high-value client engagements.

Additionally, Chief Financial Officer Jayesh Sanghrajka said Infosys maintained resilient profitability.

This was achieved despite a challenging business environment.

Our resilient margins of 21.1 per cent and consistently strong cash generation reflect the strength of our business model.

Moreover, disciplined execution and continued focus on operational excellence drive those results, he said.

Sanghrajka added that the company is stepping up investments in AI, talent and digital platforms to support future growth as part of its strategic plan. He emphasized that these investments aim to strengthen core capabilities, accelerate innovation, and build a more agile business model that can adapt to changing market demands.

Moreover, the efforts are intended to improve productivity, expand operating leverage and maintain financial flexibility to deliver sustainable shareholder value for investors and stakeholders over the long term, supporting steady earnings growth and resilience in uncertain markets.