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Bengaluru-based technology services provider, Infosys Ltd. is scheduled to report its first quarter earnings on Thursday, July 23. The results will be reported mostly after market closing.
Analysts polled by CNBC-TV18 expect the IT services company's revenue in dollar terms to increase 1.7% to $5,127 million from $5,040 million in the previous quarter.
Its constant currency (CC) revenue growth has been pegged at 1.8%. While Citi and Goldman Sachs see it much lower at 1% and 1.1% respectively, Jefferies and CLSA expect that figure to be 2.5% and 2.3% respectively.
Growth during the quarter is likely to be driven by a healthy two-month contribution from its recent acquisitions, Optimum and Stratus.
Infosys had acquired Optimim Health for up to $465 million and the transaction was completed in May 2026, bolstering the company's healthcare consulting and digital transformation services vertical.
New Jersey-based technology consultancy firm, Stratus, was acquired by Infosys for up to $95 million. The transaction closed in April this year and added over 450 experts to integrate Stratus' Guideware Software expertise with the Infosys Topaz AI and Infosys Cobalt cloud offerings.
Infosys' earnings before interest tax (EBIT) margin is likely to be stable at 21.1% compared to 21% in the previous quarter, as per analysts.
Its profit after tax (PAT) is projected to decline 7% to ₹7,903 crore from ₹8,501 crore sequentially, as per the poll.
Analysts expect Infosys to lead in growth among the large caps IT stocks in the first quarter, but only second to Tech Mahindra whose constant currency growth for the quarter stood at 2.6%. While TCS saw a 0.4% constant currency growth sequentially during the quarter, HCLTech and Wipro saw a drop of 0.5% and 1.2% respectively compared to the previous quarter.
All eyes will be on what Infosys does to its full year guidance, which is currently at 1.5% to 3.5% on a constant currency basis.
Brokerage firm Motilal Oswal expects a trimming of 50 basis points to the upper end of the guidance, while Goldman Sachs is expecting a cut of 50 to 100 basis points to the top end of the organic growth guidance due to reduced visibility on discretionary spending.
Including the recent acquisitions, the street now sees the guidance figure to be between either 2.5% to 4.5% or 2% to 4%. This will assume a 100-120 basis points inorganic contribution from the Optimim Healthcare and Stratus acquisitions.
Infosys shares ended the previous session 2% lower at ₹1,052 apiece. It has declined 35% this year, so far. However, the stock is 8% off its 52-week-low of ₹982.4 apiece, which it hit on July 1.
Also Read: Dr. Reddy's Laboratories shares will react to weak Q1 after US-listed ADR falls 10%
Analysts polled by CNBC-TV18 expect the IT services company's revenue in dollar terms to increase 1.7% to $5,127 million from $5,040 million in the previous quarter.
Its constant currency (CC) revenue growth has been pegged at 1.8%. While Citi and Goldman Sachs see it much lower at 1% and 1.1% respectively, Jefferies and CLSA expect that figure to be 2.5% and 2.3% respectively.
Growth during the quarter is likely to be driven by a healthy two-month contribution from its recent acquisitions, Optimum and Stratus.
Infosys had acquired Optimim Health for up to $465 million and the transaction was completed in May 2026, bolstering the company's healthcare consulting and digital transformation services vertical.
New Jersey-based technology consultancy firm, Stratus, was acquired by Infosys for up to $95 million. The transaction closed in April this year and added over 450 experts to integrate Stratus' Guideware Software expertise with the Infosys Topaz AI and Infosys Cobalt cloud offerings.
Infosys' earnings before interest tax (EBIT) margin is likely to be stable at 21.1% compared to 21% in the previous quarter, as per analysts.
Its profit after tax (PAT) is projected to decline 7% to ₹7,903 crore from ₹8,501 crore sequentially, as per the poll.
Analysts expect Infosys to lead in growth among the large caps IT stocks in the first quarter, but only second to Tech Mahindra whose constant currency growth for the quarter stood at 2.6%. While TCS saw a 0.4% constant currency growth sequentially during the quarter, HCLTech and Wipro saw a drop of 0.5% and 1.2% respectively compared to the previous quarter.
All Eyes On Infosys Guidance
All eyes will be on what Infosys does to its full year guidance, which is currently at 1.5% to 3.5% on a constant currency basis.
Brokerage firm Motilal Oswal expects a trimming of 50 basis points to the upper end of the guidance, while Goldman Sachs is expecting a cut of 50 to 100 basis points to the top end of the organic growth guidance due to reduced visibility on discretionary spending.
Including the recent acquisitions, the street now sees the guidance figure to be between either 2.5% to 4.5% or 2% to 4%. This will assume a 100-120 basis points inorganic contribution from the Optimim Healthcare and Stratus acquisitions.
Infosys shares ended the previous session 2% lower at ₹1,052 apiece. It has declined 35% this year, so far. However, the stock is 8% off its 52-week-low of ₹982.4 apiece, which it hit on July 1.
Also Read: Dr. Reddy's Laboratories shares will react to weak Q1 after US-listed ADR falls 10%
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