Infosys Q1 FY26 Results – Delivering Predictability, Not Performance Drama

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Infosys entered FY26 with $4.94 billion in Q1 revenue, up 3.8% year-on-year and 2.6% sequentially in constant currency beating internal expectations and holding margins at 20.8%. The company raised the lower end of its FY26 revenue guidance to 1%-3%, citing AI-driven demand and robust large deal momentum. Free cash flow remained strong at $884 million, 109% of net profit.

And yet, the reaction on the street was tepid and the stock fell by 1.4%. The numbers were solid, but the narrative lacked ignition. Investors are no longer impressed by operational consistency alone. They’re asking sharper questions: Can Infosys scale its AI wins into platform revenue? Is this rebound sticky or just seasonally well-managed?

The tension is most visible in how large deals translate into platform-scale execution. Infosys added $3.8 billion in large deal TCV, 55% of which was net new. Agent deployments are rising, 300+ AI agents were live across business functions in Q1, but integration timelines and platform stickiness remain under a close watch.

Meanwhile, gross margin held steady, aided by automation and improved pricing. Infosys pointed to productivity gains through internal AI usage and tight SG&A control. But unlike AI theatrics elsewhere, Infosys is focused on incremental enterprise lift, less spectacle, more sustainment.

And therein lies the story. Infosys is delivering predictability, not performance drama. It is not launching GPT clones or trillion-token labs. It is quietly embedding AI into finance workflows, customer support ops, and core banking. The market’s not punishing Infosys, it’s pressing for proof that its AI posture translates into revenue resilience and deeper platform entrenchment.

Greyhound Standpoint – For enterprise buyers, the cue is clear: this isn’t the Infosys of the GenAI gold rush chasing AI headlines or pivoting to flash. Nor is it the post-COVID Infosys, scrambling for cost saves. This is a firm repositioning around full-cycle AI execution and operational AI governance. The bookings say clients are listening. The margins say cost control is working. But the open question, as buyers and investors alike are asking, is whether Infosys’ AI intent will compound into platform pull, or simply plateau into another integration challenge.

At Greyhound Research, our fieldwork with enterprise technology buyers reinforces this inflection. Clients are no longer captivated by generative prototypes or LLM experimentation. They are making investment decisions based on embedded productivity, model compliance, and lifecycle governance. Infosys is increasingly seen as a vendor that delivers operationalised AI, not splashy front-end tools, but scalable, policy-aware deployments embedded in finance, procurement, and customer support. The traction with Infosys Topaz agents and Project Maximus isn’t just internally impressive, it aligns with what CIOs are actively prioritising: applied, secure, RoI-driven intelligence. That discipline is what sets Infosys apart in an AI market still saturated with marketing theatre.

Regional Performance: Europe Gains Ground

Infosys’ regional performance in Q1 FY26 echoed a familiar theme: strength in Europe, steady contribution from the rest of the world, and a concerning plateau in North America. But beneath these headline trends lies a buyer story that’s becoming more complicated, and more important for enterprise CIOs weighing partner reliability across global rollout zones.

In Europe, Infosys posted 12.3% year-on-year growth in constant currency, more than triple its company-wide average. The company attributed this to strong traction in energy, utilities, banking, and telco, with clients like DNB, AIB, and E.ON expanding AI-infused consolidation programs. Infosys’ long-standing investments in local regulatory alignment, sovereign delivery, and talent localisation are now proving to be differentiators.

We at Greyhound Research believe this growth underscores Infosys’ ability to align with compliance-led buyers in mature European markets. What’s changing is not just volume, it’s velocity and quality. European CIOs are not experimenting with AI. They’re institutionalising it.

In North America, however, Infosys clocked only 0.4% YoY CC growth, a soft landing in a region that typically accounts for the majority of its revenue. The company acknowledged continued caution in U.S. Financial Services and Retail, with AI pilots underway but few conversions to scaled programs. Even where deals were signed, execution delays and contract reprioritisation slowed revenue momentum.

We at Greyhound Research believe this stagnation signals deeper buyer ambivalence in the U.S. Most enterprise clients are past the GenAI hype cycle, but are still wrestling with RoI validation, GPU access bottlenecks, and regulatory ambiguity. For Infosys, this means growth in the U.S. will depend less on technology stack, and more on its ability to demonstrate integration value and business case credibility upfront.

In Asia-Pacific, Infosys reported stable trends, though YoY growth figures were not explicitly disclosed. Wins in Singapore, Australia, and Southeast Asia were supported by BPM and ERP transformations, while clients in Japan and Korea remained slow to ramp AI-led projects. Field evidence pointed to solid delivery traction, but mixed consistency in solutioning and GTM alignment.

We at Greyhound Research believe APAC continues to be Infosys’ most fragmented region, strong in delivery depth, but uneven in orchestration. Clients in markets like Singapore and Australia trust Infosys for execution, but still report friction in stitching AI, BPM, and core infra into a single architectural narrative. As AI moves deeper into regulated domains in Asia, this disconnect could become more visible.

Greyhound Standpoint – For global CIOs, the signal is becoming clearer. Infosys is delivering regional stability, with growing enterprise engagement across markets. In Europe, the company is gaining momentum through regulatory alignment and consistent execution in sectors like banking and public services. In North America, clients are focusing on outcome validation and timing rather than capability. Across Asia Pacific, interest in AI deployments is strong, with field results showing promise. For global programs, this means working with Infosys in ways that reflect regional maturity, local policy drivers and program scale.

Greyhound Fieldnotes confirm that this variability is less a constraint and more a reflection of enterprise readiness by market. In Europe, clients are selecting Infosys for policy aligned deployments that meet data residency and transparency requirements. In North America, particularly in financial services and retail, buyers are asking for clearer metrics and rollout predictability before expanding programs. In Asia Pacific, clients report strong delivery quality and platform traction, and are now seeking tighter coordination across go to market, advisory and architecture teams to accelerate scale up efforts. Across regions, the pattern is consistent. Infosys is delivering value, and clients are preparing to scale with intent.

Segment Highlights: Broad-Based Growth

Infosys’ Q1 results reflected top line resilience, with 3.8 percent year on year growth in constant currency, led by Manufacturing, Financial Services and Energy and Utilities. Beneath that steady surface, the growth contours showed varied momentum and evolving maturity across verticals.

Financial Services delivered revenue of 11,796 crore rupees, up 5.6 percent year on year in constant currency, maintaining its role as the largest contributor at 27.9 percent of overall revenue. Infosys reported deeper generative AI engagement with half of its top 20 financial clients, highlighting use cases across onboarding, claims and predictive lending. Ramp up, however, varied across Tier 1 banks in North America and Europe, with longer cycle timelines observed in complex programs.

Greyhound Research believes this reflects Infosys’ growing relevance in regulated sectors where generative AI adoption is closely tied to compliance and auditability. Clients are deploying agents across workflows, particularly within Infosys Finacle, but are still gradually expanding into full lifecycle integration. The company is increasingly trusted as a dependable executor. The opportunity now is to strengthen orchestration and align advisory, platform and operations under a shared governance model.

Manufacturing led growth with a 12.2 percent increase year on year in constant currency, driven by large scale captive build programs and supply chain transformations in automotive and industrial segments. Energy, Utilities, Resources and Services followed with 6.4 percent growth, supported by contract renewals and automation engagements. Infosys acknowledged ongoing softness in Europe, particularly within industrial and auto subsegments.

Greyhound Research believes Infosys’ strength in these verticals lies in its ability to consolidate services and deploy operational AI at scale. Clients are moving toward bundled partnerships, and Infosys is well placed with its hybrid automation and platform approach. The next wave of traction will come from expanding orchestration across cloud, enterprise resource planning and edge environments to streamline full stack delivery.

Greyhound Fieldnotes from large enterprise AI programs validate this trajectory. Clients deploying Infosys BPM’s invoice automation tools and Infosys Finacle’s data driven modules report clear benefits in cycle times, visibility and operational accuracy. However, these gains often remain confined to siloed deployments. While Infosys positions Infosys Topaz, Finacle and BPM as components of a connected AI system, many clients still oversee governance, integration and tooling independently. Embedding a shared architecture across platform elements will be key to unlocking scaled value.

In other sectors, growth remained more tempered. Life Sciences declined 7.9 percent year on year, citing cautious discretionary spend and delayed transformation cycles. Retail and Hi Tech grew 0.4 percent and 1.7 percent respectively, as clients focused on core priorities and deferred new initiatives.

Greyhound Research believes that clients in these innovation led verticals are increasingly looking for platform driven transformation. Infosys has the assets across Infosys Topaz, experience design and process intelligence, but the go to market model remains oriented toward project delivery. Unifying the platform proposition in these sectors will be essential to revitalising momentum.

On the platform front, Infosys reported continued progress with Infosys Topaz and Infosys Finacle, including new program wins across financial and industrial clients. AI agents are now live across client environments, with measurable improvements in productivity and outcome alignment. However, detailed disclosures on governance frameworks, version control and lifecycle policy models were not included in the update.

Greyhound Standpoint – For CIOs, the momentum is clear. Infosys is showing traction across sectors, especially where compliance, automation and operations intersect. The delivery stack is active. The platform story is expanding. Buyers should engage Infosys with confidence on execution, while partnering closely to shape cross platform alignment, lifecycle governance and enterprise readiness. The shift from point solution to unified system is already underway. For clients ready to co-design that journey, the opportunity is well timed.

Stack Signals: AI Agent Growth Is Real

Infosys’ Q1 FY26 results reflected steady top line performance. The company reported 3.8 billion dollars in large deal total contract value, and stable margin performance. Beneath that consistency, however, the momentum across platforms varied. While the AI suite Infosys Topaz gained traction in operational deployments, Infosys’ enterprise platforms, including Infosys Finacle , advanced at their own pace. The result is a portfolio that is active across layers, but still evolving toward integrated scale.

Infosys Topaz, Infosys’ flagship AI offering, expanded its presence in Q1, with agents embedded across finance, human resources and customer support functions. Client programs at SPS, EON and DNB were cited as examples of generative AI enabled decision workflows, resilience monitoring and service transformation. These are not pilots. They are evidence of AI being woven into business workflows.

Greyhound Research believes this growth validates Infosys’ agent centric approach. The company is not experimenting with language models in isolation. It is focusing on policy aware automation and audit friendly operational AI. That discipline is earning trust in regulated environments. What comes next is architectural standardisation, including version control, orchestration frameworks and platform lifecycle tooling. Buyers still describe Infosys Topaz as modular. The opportunity now lies in evolving it into a governed system.

Infosys also reported expansion in Infosys Finacle, with new wins across the Middle East and Australia. Infosys BPM continued to add functionality in AI powered invoice automation. ESG aligned clients are adopting agent driven tools, including those built on Microsoft Sustainability Manager. However, no cross platform revenue detail or recurring revenue metrics were disclosed for these offerings during the quarter.

Greyhound Research believes that clients adopting these platforms are now beginning to seek a unified deployment experience. Infosys Topaz, Finacle and BPM all deliver value in their own right. But buyers are increasingly asking for lifecycle visibility, policy alignment and identity consistency across deployments. As AI becomes a foundational capability rather than a separate initiative, CIOs are prioritising architectural clarity. Infosys is well positioned to respond to this shift. The next phase will depend on how effectively it integrates these capabilities under a shared control environment.

Greyhound Standpoint – Infosys is clearly demonstrating traction with enterprise AI. Infosys Topaz is delivering measurable business impact. Infosys Finacle and BPM are advancing as domain solutions with embedded intelligence. The next step is architectural convergence. Clients are looking for an integrated experience where governance, orchestration and ownership are standard. For CIOs, this is the moment to partner with Infosys not only for execution strength, but for platform alignment that scales with policy and operational certainty.

AI-Led Momentum: Agent Adoption Expands

Infosys’ Q1 FY26 results reflected growing momentum for enterprise AI, supported by over 300 generative AI agents now active across client environments. The company reported that new AI enabled engagements are increasingly embedded in large deals, particularly in Financial Services, Manufacturing and Utilities. While Infosys does not break out cumulative AI revenue, Q1 commentary confirmed that generative AI now features in all platform proposals and in more than half of net new contract value.

More importantly, this demand is not speculative. Infosys reported domain specific deployments for invoice automation, grid optimisation and hybrid cloud monitoring across clients including Americana Restaurants, EON and SPS. These implementations are embedded into operational workflows, not just proof of concept pilots. Infosys is applying AI to reshape how work is executed, not simply where it occurs.

Greyhound Research believes this traction is most pronounced in sectors with high regulatory or operational complexity such as banking, utilities and retail. Clients have reported measurable benefits including improved code productivity, up to 25 percent reduction in invoice processing cycles and greater automation in requirements documentation. These outcomes are driving confidence. As adoption scales, enterprise buyers are increasingly focused on lifecycle reliability and platform orchestration. The consistency of deployment tooling, policy enforcement and agent telemetry is becoming central. That is where the next layer of maturity will emerge.

Unlike hyperscalers or model centric providers, Infosys is not chasing generative benchmarks. Its strategy is built around agent based systems, embedded policy and audit friendly lifecycle management. The Infosys Topaz offering supports this architecture by integrating models, data orchestration, governance tools and runtime controls into a modular stack that fits structured enterprise workflows. What matters is not the volume of models deployed, but the quality of their operation and the transparency of their oversight.

Infosys also introduced AI enabled sustainability solutions in agriculture through Perfection Fresh, fan engagement tools for sports clients such as LTA and monitoring enhancements across telecommunications and logistics programs. These are not concept showcases. They are embedded delivery programs with post sale accountability. Internally, Infosys continues to scale its automation footprint through Project Maximus, reporting cost improvements, optimised resource structures and enhanced price realisation.

Greyhound Standpoint – For CIOs, the direction is clear. Infosys is turning generative AI into enterprise scale utility. The agent library is expanding, delivery programs are maturing and client value is increasingly evident. The next opportunity lies in evolving Infosys Topaz into a fully governed operating layer with standardised lifecycle tools, orchestration frameworks and compliance scaffolding. With this foundation in motion, Infosys is positioned to deliver not just capability, but consistency at scale.

What Clients Are Saying—and Experiencing

Across over 800 enterprise IT and transformation leaders surveyed in Greyhound CIO Pulse 2025, the message is clear: AI platforms are no longer judged by capability alone, but by how seamlessly they integrate across the enterprise. A full 62 percent of respondents are now prioritising AI workflows that operate close to systems of record—through embedded ERP agents, BPM solutions, or infrastructure aligned orchestration. The era of standalone experimentation is giving way to embedded, explainable intelligence. Clients want AI that respects context, policy, and scale.

Greyhound Fieldnotes indicate that Infosys is strongly aligned to this shift. Infosys Topaz agents, BPM accelerators, and Finacle AI modules are resonating with enterprise buyers, particularly in regulated sectors where policy, auditability, and lifecycle control matter. Clients cite steady progress in deploying GenAI capabilities across finance, procurement, shared services, and customer operations. What they increasingly seek now is a more harmonised experience—common lifecycle tooling, streamlined ownership, and architectural consistency across deployments. This isn’t a gap, but a signal of readiness: clients are leaning in, looking to scale with confidence.

In Europe, Infosys is recognised for its localised delivery and regulatory alignment. CIOs in Germany and the Nordics point to Infosys Topaz’s traction in financial services and public sector engagements, where trust and traceability are critical. Buyers also highlight Infosys’ willingness to co-develop deployment models that meet national requirements. As enterprise AI adoption scales, regional standardisation is emerging as the next frontier—not a concern, but a natural part of platform evolution.

Across North America, field reports reflect a maturing relationship with AI implementation. Clients in financial services and retail value the impact of Infosys’ GenAI pilots and increasingly focus on how to extend those pilots into enterprise-wide initiatives. Requests for architectural clarity, governance continuity, and streamlined agent deployment reflect a buyer base preparing to move from adoption to scale—driven not by caution, but by commitment.

In Southeast Asia, Infosys continues to demonstrate consistent delivery depth—particularly in BPM-led automation across logistics, shared services, and operations hubs. Clients in Singapore and Malaysia acknowledge the quality of delivery while seeking more tailored architectural guidance to local operating environments. As these regions move toward multi-market standardisation, clients are looking to Infosys to help unify playbooks across distributed teams.

In Australia and the UAE, interest in Infosys’ platform-led automation is expanding, particularly for ERP-aligned workflows. Buyers note the technical robustness of Infosys Topaz and Finacle, and are increasingly asking for more visibility into long-term integration pathways—especially for hybrid cloud and legacy coexistence. The sentiment is not about gaps, but about roadmap transparency and co-ownership of enterprise transformation.

Even in fast evolving verticals like energy, telecom, and manufacturing, clients describe Infosys’ agent catalogue as rich and relevant. What they are now exploring is how to extend these solutions horizontally—across finance, supply chain, risk, and service—under a common orchestration layer. This interest signals platform maturity and trust, not hesitation. Buyers are no longer evaluating if GenAI works. They’re designing how it scales.

Greyhound Standpoint – Infosys has moved well past the AI proof-of-concept phase. The platform footprint is expanding, agents are in production, and client relationships are deepening. What buyers now expect is not more capability, but more cohesion—a shared lifecycle model, architectural clarity, and unified delivery experience. These expectations reflect trust, not doubt. Infosys is entering a new phase of platform partnership—where orchestration becomes the differentiator, and scale is shaped by how smoothly the parts come together.

Strategic Takeaways for Enterprise Buyers

For CIOs and enterprise transformation leaders reviewing Infosys after Q1 FY26, the strategic signals are becoming clearer and more constructive. This is no longer a conversation about stability. It is about whether Infosys is building a sustainable enterprise grade AI operating model that can scale with confidence, control and continuity.

First, Infosys’ GenAI foundation is proving its effectiveness in delivery. The company’s agent deployments span areas from invoice automation to energy optimisation, and these are already embedded in core operations for many clients. What buyers are now asking for is repeatability, not just impact in isolation but consistency across domains. They are beginning to evaluate how Infosys translates its AI innovation into sustained platform patterns governed by lifecycle policies and architectural standardisation.

Second, as platform adoption scales, integration is becoming a defining theme. Infosys offers a strong catalogue: Infosys Topaz  AI agents, BPM  workflows, Infosys Finacle for core banking, and a growing layer of cross functional advisory. The opportunity now is to simplify how these components interconnect. CIOs are looking for a more unified experience, a shared framework for policy management, versioning, agent reuse and orchestration across workflows. This is not a gap. It is a natural next step as enterprise AI adoption matures.

Third, as GenAI becomes a cross stack conversation, buyers are seeking early stage alignment on architecture and governance. Infosys is already playing a critical role in delivering transformation programs at scale. What buyers are now asking for is a more coordinated front, one that integrates AI advisory, data foundation, process intelligence and infrastructure readiness into a single journey. This is especially true in industries where regulatory scrutiny, legacy complexity and system interoperability require end to end design thinking.

Fourth, buyers are placing a premium on roadmap visibility and role clarity. As Infosys deepens its platform presence, clients want to understand who owns what, whether in aligning Infosys Topaz with Finacle, stitching agents with cloud services or governing lifecycle policies in hybrid environments. These are healthy signals from enterprise IT teams ready to invest further, provided the engagement model feels cohesive.

Greyhound research suggests that this expectation of integration maturity is less a critique and more a sign of buyer readiness. CIOs are not questioning Infosys’s delivery capability. They are looking for a blueprint. They want a pre integrated, governance aligned framework that streamlines onboarding, eliminates ambiguity and scales with accountability. That is what will elevate Infosys from platform executor to systems partner.

And finally, enterprise buyers themselves are evolving. The expectations placed on technology vendors have shifted from transactional delivery to co-created transformation. Infosys is no longer seen as just a cost and scale player. It is being called into strategic conversations around policy design, experience orchestration and AI platform architecture. That trajectory is already underway. What comes next is operationalising that trust across every engagement.

Greyhound Standpoint – Infosys is not just a vendor building a suite of AI tools. It is becoming a system. That system is modular today but increasingly being shaped into a cohesive whole. Its delivery is credible, its domain AI footprint is deep, and its platform story is gaining traction. For CIOs, this is the moment to engage Infosys not just for implementation but for strategic orchestration. With focused buyer engagement, clearer lifecycle scaffolding and coordinated go to market alignment, Infosys is positioned to evolve from executor to architect and from solution provider to platform partner.

Greyhound Standpoint: The Engine Is Running. The Platform Must Now Catch Up.

Infosys’ Q1 FY26 results reinforce a clear trajectory. This is no longer a company stabilising from disruption. It is methodically building its future around AI, automation and enterprise grade platforms. The company is not chasing volume scale or generative headlines. It is embedding intelligence across agent led systems, operational workflows and industry specific domains. Infosys Topaz is no longer aspirational. It is active in production. Infosys Finacle is not just a banking solution. It is powering digital cores globally. And Project Maximus is not simply about cost leverage. It is enabling margin recovery while scaling AI delivery with intent.

This shift is not about proving execution. It is about expanding consistency across platforms.

Buyers are seeing results from Infosys Topaz, but many are now exploring how to extend those gains with greater architectural clarity. BPM is delivering outcomes, and clients are beginning to ask how to align it more deeply with governance models. Finacle continues to gain ground, and there is growing interest in connecting its evolution with cross platform orchestration. Advisory teams are increasingly embedded in strategic deals, and as those deals mature, clients are looking to Infosys for a more seamless journey from architecture to deployment.

The generative AI narrative is gaining substance. Clients are seeing real impact across functions. What comes next is turning those wins into a unified operating model. Enterprise buyers are focused on governance, lifecycle oversight and platform alignment. They are not questioning value. They are planning for scale.

Internally, Infosys is making decisive moves. Generative AI is being applied across functions, from delivery to pricing to solutioning. Automation is no longer isolated. It is shaping how services are scoped and how outcomes are measured. Buyers are acknowledging this momentum. What they are now seeking is a way to experience that strength as a connected platform, not just a set of high performing parts.

This is the next growth lever. Infosys has built a reputation for delivery confidence. The opportunity now lies in extending that into a fully integrated platform identity.

According to Greyhound Pulse, enterprise technology leaders are increasingly focused on integration readiness. They are seeking trusted partners who offer consistency, accountability and architecture that scales with policy embedded from the start. Infosys has all the components in play. As it moves to streamline ownership, simplify lifecycle tooling and align its platforms under a cohesive governance model, it will unlock the next wave of platform adoption. Integration is no longer an engineering task. It is a trust signal.

Strategically, Infosys is not trying to win the model race. It is building enterprise AI that is secure, explainable and production aligned. This positions it strongly in industries such as banking, utilities and manufacturing, where regulatory complexity and business continuity take precedence over novelty. The path forward is clear. Platform unification, experience orchestration and lifecycle reliability will define the next phase of differentiation.

Infosys has already redefined its delivery ambition. What lies ahead is the chance to elevate that ambition into a system that clients experience as seamless, governed and scalable by design.

The platform foundation is in place. The client trust is visible. The orchestration narrative is ready to mature. Now Infosys must convert that opportunity into platform compounding.

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