Infy signals weak FY26 after muted Q4 result

Infosys, India's second-largest information technology (IT) services provider, on Thursday predicted weaker than expected revenue growth for FY26, becoming the latest Indian IT company to signal a difficult year ahead, with global economic uncertainty, tariff disruptions, and cautious client spending clouding the sector's outlook.

- AVIK DAS

The company said it expected revenue growth for this financial year to be flat at 3 per cent on a constant currency basis, even as clients across verticals pulled back on discretionary spending.

"The environment is uncertain and clients are already seeing pressure on their budgets," Chief Executive Officer Salil Parekh said at a press conference. "While we have not seen any project cancellations, we are giving this guidance while keeping in mind how things might unfold."

Infosys' net profit in the fourth quarter (Q4) of 2024-25 stood at ₹7,033 crore, down 11.7 per cent from a year earlier, as selling and marketing expenses increased. Revenue grew 7.9 per cent to ₹40,925 crore.

While the profit was above estimates, revenue missed Street expectations, according to Bloomberg.

For the full year, the net profit and revenue were up 1.8 per cent and 6.1 per cent, respectively.

Infosys has joined a growing list of IT services companies that have sounded the alarm bells about technology spending.