Infosys Stock Jumps Ahead Of Q1: Will Narayana Murthy's IT Player Outperform Rivals TCS, HCL, Wipro In Q1FY26?

Infosys' share price is trading broadly on a positive note ahead of its Q1 results for FY26, scheduled for July 23. The Narayana Murthy-backed mega tech is expected to report steady revenue growth, along with stable EBIT margins. Also, experts are predicting that Infosys could change its revenue guidance higher in FY26.

Infosys Share Price:

At the time of writing, Infosys traded at Rs 1578.60 apiece, up by 0.54% on BSE, with a market cap of Rs 6,56,001.19 crore. Overall, the stock zoomed by nearly 1% to trade at an intraday high of Rs 1585.35 apiece.

Infosys Q1 Results Preview:

As per the regulatory filing, Infosys will announce results for the first quarter ended June 30, 2025, on Wednesday, July 23, 2025, around 3:45 p.m. Indian Standard Time (IST) (6:15 a.m. ET; 3:15 a.m. PST; 11:15 a.m. London time; 6:15 p.m. Singapore/Hong Kong time).

Also, the leadership team will be part of a press conference at 4:15 p.m. IST on July 23, 2025. The participating executives will address questions from the media during this interaction, which will be streamed live on the Investor Relations section of Infosys website, following which it will be archived here.

In the Q1FY26 quarter, analysts at Kotak Institutional Equities said, "We forecast revenue growth of 1.6% qoq, driven by (1) higher billing days and (2) continued strength in financial services vertical. We do not assume any incremental revenues from sale of third-party items. Growth numbers include ~30 bps from Missing Link and MRE acquisitions."

On operating profit, Kotak's note added, "We expect stable EBIT margin qoq and yoy. On a qoq basis, there are many moving parts. For March 2025 quarter (1) tailwinds included 80 bps from reversals and additional tailwind from lower variable compensation payout, while (2) headwinds were one-off amortization related costs. For the June 2025 quarter, margin tailwinds are currency and some leverage from growth, which will offset one-off driven high base of March 2025 quarter."

Also, the analysts expect large deal TCV of US$3 bn, a decline on yoy comparison, with focus on ACV of deal wins. In case of guidance, these analysts believe that Infosys could change revenue growth guidance to 1-3% from 0-3% earlier. Revised guidance may include ~40 bps from Missing Link and MRE acquisitions.

Meanwhile, analysts at Prabhudas Lilladher said, "We expect INFO to strong report revenue growth of 2.2% QoQ CC & 3.7% QoQ in USD aided by currency benefit of 170 bps QoQ. Q1FY26 growth is expected to be driven by BFSI, EURS & Hitech and Insemi's 2-month residual contribution. On margins front, we expect EBIT margin to remain flattish as wage hike impact of senior employees will be set off against absence of visa costs & amortization of acquired companies incurred in Q4."

Key Factors To Watch Out In Infosys Q1FY26 Earnings Are:

Key monitorable will be the revenue guidance, which we expect the company to maintain on organic basis, as per PL's analysts.

Moreover, Kotak's analysts said, "We expect investor focus on: (1) program cancellations and impact on demand from verticals directly impacted imposition of Tariffs by US (2) program cancellations, if any, (3) strength of deal pipeline especially noting muted large deal wins over the last three quarters, (4) pace of enterprise AI adoption and resultant pricing and deflationary pressure, (5) margin levers in FY2026 and (6) revenues from sale of third-party items."

For the full year 2024-25, the company's revenue stood at Rs 162,990 crore, registering a growth of 6.1% YoY. Its constant currency revenue growth was at 4.2% YoY.

During Q4FY25 earnings announcement in April, Infosys had projected revenue growth of 0%-3% in constant currency, while operating margin is predicted in the range of 20%-22% for FY26.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.