AI push powers Infosys to Rs 6,921 crore profit, $2.1 billion in large deals

At the Q1 FY26 earnings call, CEO Salil Parekh said the AI agents are already delivering improved productivity and decision-making across use cases such as customer support, software engineering, operations, and enterprise decision systems.

By  Storyboard18| Jul 24, 2025 11:06 AM
Infosys has trained over 250,000 employees in AI and GenAI capabilities, and continues to invest in platforms and talent to support client needs.

Infosys said it has rolled out more than 300 Agentic AI solutions across client engagements and internal systems, underscoring the rapid shift from pilot programs to scaled enterprise AI adoption.

At the Q1 FY26 earnings call, CEO Salil Parekh said the AI agents are already delivering improved productivity and decision-making across use cases such as customer support, software engineering, operations, and enterprise decision systems. “These AI platforms are embedded within client environments and are accelerating digital transformation efforts,” he noted.

Agentic AI defined as AI’s ability to autonomously act based on contextual understanding is gaining traction across the Indian IT services sector. Rival Wipro has deployed over 200 enterprise AI agents, with CEO Srinivas Pallia pointing to a clear pivot in client investments toward AI.

“We’re moving beyond pilots. Enterprises are scaling these AI agents,” Parekh said, noting Infosys is deploying both standalone agents and integrated solutions tied to clients' core systems.

Infosys has trained over 250,000 employees in AI and GenAI capabilities, and continues to invest in platforms and talent to support client needs.

The Bengaluru-based IT major also closed $2.1 billion in large deals in the June quarter — the highest in four quarters — with many involving AI-driven or cost-optimization components.

On the financial front, Infosys reported a consolidated net profit of ₹6,921 crore in Q1 FY26, an 8.7% increase year-on-year, beating analyst expectations. Revenue rose 7.5% to ₹42,279 crore. A Bloomberg poll had estimated profit at ₹6,778 crore and revenue at ₹41,724 crore.

Growth was led by Europe, which saw 12.3% constant currency revenue growth. North America remained flat. The company retained its operating margin guidance at 20–22% for FY26. Q1 margins stood at 20.8%, with pricing gains and seasonal efficiencies offsetting wage hikes and investment costs.

Sector-wise, Infosys flagged softness in manufacturing, logistics, and consumer products, but noted improving demand in energy, utilities, and telecom.

First Published onJul 24, 2025 11:06 AM

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