Infosys Reports $5.099B Q3 Revenue, Raises FY26 Guidance to 3.0%-3.5%
Infosys reported Q3 revenues of $5.099 billion, up 1.7% year-on-year in constant currency, with adjusted margin rising 0.2 percentage points to 21.2% and adjusted free cash flow of $965 million (112.8% of profit). The company raised FY26 revenue guidance to 3.0%–3.5% CC, announced an ₹18,000 crore buyback and won $4.8 billion in large deals.
1. Q3 Earnings and Key Metrics
On January 14, 2026, Infosys reported earnings per share of $0.17, compared with consensus estimates of $0.20. Revenue for the quarter reached $5.04 billion, exceeding the projected $4.93 billion. In constant currency terms, revenue growth was 1.7% year-on-year and 0.6% sequentially. The company secured large deal wins totaling $4.8 billion, of which 57% were net new engagements, and generated free cash flow of $915 million in the period.
2. Strong Financial Position
Infosys maintains a conservative capital structure, with a debt-to-equity ratio of just 0.085 and a current ratio of approximately 2.28, underscoring its ability to meet short-term obligations. The stock trades at a price-to-earnings multiple of about 23.8 and a price-to-sales ratio near 4.05, reflecting robust investor confidence in the company’s earnings and revenue profile. In line with its capital allocation policy, Infosys completed an ₹18,000 crore share buyback and paid an interim dividend during the quarter.
3. Growth Drivers and Updated Guidance
Demand from financial services clients has underpinned the strong top-line performance, prompting management to raise its full-year revenue growth forecast to a range of 3.0%–3.5% in constant currency. Operating margin guidance is set at 20%–22%. The company is leveraging its AI platform, Infosys Topaz, to win strategic engagements such as a £1.6 billion contract with the U.K. National Health Service, and is expanding its digital transformation offerings across sectors including healthcare, banking and retail.