Infosys (NYSE:INFY) lifted its full-year revenue growth guidance after delivering better-than-expected third-quarter results, underpinned by broad-based sequential growth, strong large-deal activity and signs of improving client demand, analysts said.
The IT services group reported third-quarter revenue of $5.1 billion, representing sequential constant-currency growth of 0.6%, alongside an adjusted operating margin of 21.2%. Total contract value from large deals reached $4.8 billion during the quarter, with 57% classified as net new business.
Chief executive Salil Parekh said the company’s enterprise AI work “is consistently driving higher market share,” adding that customers increasingly see Infosys as their “AI partner with demonstrated expertise.”
Jefferies analyst Akshat Agarwal described the quarter as an “all-round beat,” noting that both revenue and normalised profit exceeded expectations. He highlighted particularly strong momentum in Europe, where revenue rose 3.6% quarter on quarter, and said “healthy” large-deal bookings supported the company’s decision to raise FY26 revenue growth guidance to 3%–3.5%.
JPMorgan analyst Ankur Rudra said the results delivered a clear “revenue beat,” with margins broadly in line with forecasts. He added that the upgraded full-year outlook implies “the strongest 4Q since 2022,” pointing to improving underlying momentum. Large-deal signings were up 92% year on year.
Bank of America analyst Kunal Tayal said the revised guidance “implies a strong exit growth rate,” describing it as an “organic revision.” He highlighted particularly strong execution in financial services and life sciences, noting that AI adoption among clients remains “going strong.”
Infosys reaffirmed its FY26 operating margin guidance of 20%–22% and added more than 5,000 employees during the quarter, signalling confidence in the strength and visibility of its deal pipeline.