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Infosys Q results showed flat net profit, slight margin miss, and a cut in FY guidance to 1-2% from earlier 1.5-3%, despite strong deal wins

By ScoutQuest · Fri 23 Oct 2026, 4:13 PM IST · 1 min read

Margin impact vs estimate

20 basis points

New guidance range

1 to 2 percent

Previous guidance range

1.5 to 3 percent

AI revenue this quarter

10.5 percent

AI revenue previous quarter

8.2 percent

Heard on business television between 16:16:47 - 16:19:47 IST.

• Net profit came in flat QoQ versus an expected 1.8% uptick, and margins missed estimates by about 20 basis points versus expected 10 bps uptick.
• Guidance was cut: upper band lowered from 3% to 2% and lower band from 1.5% to 1%, now standing at 1-2%, which the street saw as a negative surprise.
• AI revenue rose to 10.5% of revenue (up 29% QoQ) from 8.2% last quarter, ahead of TCS's 10.2%, seen as a positive sign amid otherwise weak numbers.
• Deal wins were strong at 5.2 billion dollars versus an expected 2.5-3 billion, with over 62% being net new, but ramp-up costs may be pressuring margins.
• Analyst Avinash said the guidance cut was surprising compared to TCS and HCL Technologies, which were upbeat and did not cut guidance; pre-market ADRs for Infosys were down 4.7%.

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