Infosys ups guidance as tech spends rise

Q3 deal wins at $4.8bn; ₹1.28K-cr impact on profit due to Labour Code

- POULOMI CHATTERJEE

THE COUNTRY'S SECOND largest IT services firm, Infosys, on Wednesday raised its revenue growth guidance for FY26, signalling that a prolonged slowdown in global corporate technology spending is beginning to ease, even as quarterly profit took a hit from the impact of the new Labour Code.

The Bengaluru-based software services firm now expects revenue to grow 3%-3.5% in FY26 on a constant currency basis, up from its earlier forecast of 2%-3%. Bloomberg consensus had pegged growth at about 3.13%. The raised outlook comes on the back of a healthier demand environment and a strong pipeline of large deals, CEO Salil Parekh said.

“We have had a lot of large deals in the previous few quarters, plus we had a very strong execution in this quarter,” Parekh told reporters. He added that wins across financial services, energy, utilities and resource services, along with Infosys’ positioning as an artificial intelligence partner for clients, underpin confidence going into the next financial year. “The way we have become an AI partner of choice with our clients, we see a good outlook even as we look into the next financial year,” he said.