Infosys Share Price Dips Despite Strong Q1 Performance — Here’s What the Numbers Say

Market Performance

Infosys share price opened in the red on Thursday despite delivering better-than-expected results for the first quarter of FY26.

• At 10:15 a.m., Infosys shares were trading 1% lower at Rs 1,557.5 on the NSE.
• The decline comes amid muted investor sentiment triggered by cautious revenue guidance and macroeconomic headwinds.

Main News: Q1 Results Beat Estimates

Infosys Ltd, India’s second-largest IT services company, released its Q1 earnings report for the quarter ending June 30, 2025. The company posted strong financials, outperforming market estimates on both revenue and profit fronts.

Key Highlights:

• Net Profit (YoY): Rose 8.7% to Rs 6,921 crore
• Revenue (YoY): Increased by 7.5% to Rs 42,279 crore

Infosys revised its FY26 revenue growth guidance to 1–3% in constant currency, up from the previous range of 0–3%, while maintaining its operating margin outlook at 20–22%.

Despite the robust earnings, the marginal tweak in the revenue outlook, particularly the adjusted guidance including inorganic growth (0.4%), led to cautious investor reaction.

Company Details

Infosys continues to navigate a complex global environment, with certain verticals facing noticeable challenges:

• Manufacturing and Retail: These segments witnessed notable impact due to ongoing macroeconomic pressures.
• European Markets: Showed emerging opportunities, largely from consolidation and outsourcing deals.

While the order book remains healthy, management acknowledged that broader economic uncertainties still persist, keeping client decision-making timelines elongated.

Financial Overview

Here’s a closer look at Infosys’ key financial metrics for Q1 FY26:

Revenue

• Rs 42,279 crore, up 7.5% YoY
• Growth led by client renewals and stable deal flow

Net Profit

• Rs 6,921 crore, an increase of 8.7% YoY
• Boosted by reduced third-party expenses and operational efficiency

EBITDA & Margins

• Operating margin guidance maintained at 20–22%
• No major shifts in cost structure reported during the quarter

Summary of the Article

Despite a solid performance in Q1 FY26, Infosys share price witnessed a slight dip in Thursday’s trade. The company reported strong revenue and net profit growth, beating analyst expectations. However, the cautious tone in revised revenue guidance and continued macro uncertainties across key verticals like manufacturing and retail led to subdued market sentiment.

With opportunities emerging in Europe and a steady margin outlook, Infosys remains focused on driving growth amid external challenges. While the quarterly numbers impressed, the short-term pressure on Infosys share price reflects broader investor caution rather than any weakness in fundamentals.