Infosys delivered a stronger-than-expected performance in the December quarter, signalling a gradual recovery in India’s IT services sector as global clients step up spending on digital transformation and artificial intelligence. The results add to growing optimism that demand from key markets, especially the financial services industry, is stabilising after a prolonged slowdown.
India’s second-largest IT services company reported an 8.9 percent rise in revenue to ₹45,479 crore in the October–December period. This was higher than market expectations of ₹45,227 crore, according to LSEG data.
Reflecting the improved outlook, Infosys raised its revenue growth forecast for the financial year ending 2026 to 3 percent–3.5 percent, up from its earlier guidance of 2 percent–3 percent. Some brokerages had expected the company to narrow its guidance range further, but the revision itself suggests confidence in a sustained pickup in demand.
The financial services segment, which contributes nearly one-third of Infosys’ revenue, grew 3.9 percent during the quarter. The communications segment recorded the fastest growth, rising 9.9 percent, underlining broader-based demand across verticals. The company also said it secured several AI-led deals during 2025, including projects with Adobe and Siemens, highlighting the growing role of artificial intelligence in driving new business.
However, net profit declined 2.2 percent to ₹6,654 crore, falling short of analysts’ expectations of ₹7,379 crore. Infosys said profits were impacted by a one-time charge of ₹1,289 crore linked to India’s new labour codes that came into effect in November 2025.
Infosys’ performance mirrors a broader trend in the IT sector. Global major Accenture recently beat revenue estimates on strong demand for AI-driven services, while Indian peers TCS and HCLTech also reported better-than-expected revenues, pointing to a gradual revival in technology spending.
