Infosys reported constant currency (CC) revenue growth of 4.2% for the financial year ended March 31, 2025, with an operating margin of 21.1%, free cash flow of $4.1 billion, and large deal total contract value (TCV) of $11.6 billion (56% net new).
For the financial year 2026, the company guided for CC revenue growth of 0% to 3% and an operating margin band of 20% to 22%.
CEO Salil Parekh described FY25 as an "excellent year" with "solid performance," noting growing client demand for AI and strategic expansions through acquisitions (US energy/consulting, Australia cybersecurity) and a new partner in the Japan JV.
CFO Jayesh Sanghrajka stated the guidance reflects uncertainty in the environment, with the lower end baking in potential deterioration and the top end assuming a steady to marginally improving environment.
The company plans to hire 20,000+ freshers in FY26 and is on track with wage increases, which were largely rolled out in January with the balance in April. Q4 FY25 attrition was 14%.
Q4 FY25 margin (21.1%) was impacted by wage hikes and acquisition amortization but offset by operational efficiencies. Sanghrajka reiterated the 20-22% margin band for FY26 with an endeavor to increase margins.
Infosys sees opportunities in vendor consolidation and leveraging AI for productivity gains (e.g., 20-25% in Finacle, 30-40% in some customer service areas). They are working on ~400 AI projects.