Infosys Q1 FY26 Results Are Out: Buy, Hold, or Sell?
- Stay Informed With Sanil | Sanil Pinto
- Jul 24
- 4 min read
Updated: Jul 26
Whether you're holding Infosys stock or considering a fresh entry, this deep dive into Infosys FY26 Q1 earnings will help answer the big question — is now the right time to buy Infosys shares post-results?
If you're also looking for a trusted financial planner in Mumbai to guide your equity and SIP decisions, we’ve got you covered.
Infosys Q1 FY26 Results at a Glance
Infosys reported a solid start to the new fiscal. Despite global uncertainty, they managed to beat most expectations — especially around deal wins and margins.
Revenue: ₹42,279 crore
⤴️ Up 7.5% YoY, 3.3% QoQ
Net Profit (PAT): ₹6,921 crore
⤴️ 8.7% higher YoY but marginally down from last quarter
EBIT Margin: 20.8% (a slight dip YoY)
EPS: Up 8.6% YoY
Large Deal Wins: $3.8 billion — and 55% of that is net new business
In short, Infosys has held its ground well — especially considering cost pressures, global macro uncertainty, and sector-wide hiring caution.
Breaking Down the Key Metrics
Metric | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY Growth | QoQ Growth |
Revenue | ₹42,279 Cr | ₹40,925 Cr | ₹39,315 Cr | 7.5% | 3.3% |
Net Profit | ₹6,921 Cr | ₹7,033 Cr | ₹6,368 Cr | 8.7% | -1.5% |
EBIT Margin | 20.8% | 21.1% | 21.1% | -0.3 ppt | -0.2 ppt |
Attrition Rate | 14.4% | 14.1% | 12.7% | ⬆︎ | ⬆︎ |
Deal TCV | $3.8 bn | $2.6 bn | $5.0 bn | 🔽 YoY | ⬆︎ QoQ |
What does this mean for investors? While net profit dipped a touch quarter-on-quarter, the YoY growth and deal pipeline show continued strength. And the fact that over half the new contracts are net-new wins is a big positive.
Infosys Q1 FY26 Results: Deal Wins, Attrition & FY26 Guidance — What Should You Focus On?
Large Deals: Infosys signed $3.8 billion worth of deals in Q1, mostly driven by demand in AI, BFSI, manufacturing, and retail.
Geography: North America continues to dominate revenues at over 56%.
Attrition: A mild uptick to 14.4%, which is still manageable.
Headcount: Up only 210 QoQ — Infosys is being very cautious with hiring.
FY26 Guidance:
Revenue: Revised to 1–3% (up from 0–3%)
Margins: Maintained at 20–22%
This is a quiet vote of confidence from management.
“Our performance in Q1 demonstrates the strength of our enterprise AI capabilities and client relationships.” — Salil Parekh, CEO
Infosys vs TCS, HCL Tech, Wipro — Who’s Leading the IT Pack?
Company | Revenue Growth | EBIT Margin | Attrition | TCV | PE Ratio |
Infosys | 7.5% | 20.8% | 14.4% | $3.8B | ~23x |
TCS | 6.6% | ~24.7% | 13.8% | $3.5B | ~29x |
HCL Tech | 6.5% | ~18% | 12.8% | ~$2.3B | ~20x |
Wipro | 5.2% | ~16.5% | 15.1% | ~$1.4B | ~17x |
Compared to peers like TCS and HCL Tech, Infosys Q1 FY26 Results highlight strong deal wins and revenue growth. While TCS scores on margin, Infosys still offers better value for money given its forward PE of ~23.
Buy, Hold, or Sell Infosys Stock After Q1?
Here’s a simple breakdown based on technicals and fundamentals.
Technical Indicators (as of July 24, 2025)
RSI: Neutral zone (50–55) — stock is consolidating
MACD: Slight positive crossover — but early days
Price Levels:
Support: ₹1,595–1,615
Resistance: ₹1,700 (first), ₹1,750 (next)
Moving Averages: Price is above short-term averages, but still below 200DMA — suggests potential upside but not confirmed yet
No breakout yet. But if Infosys crosses ₹1,700 with volume, we could see a trend reversal.
🎯 Target Price and Investment Outlook
Base Case: ₹1,700 — needs to sustain above this for next rally
Bullish Street Targets:
Morgan Stanley: ₹1,700
BofA: ₹1,840
Risk Zone: ₹1,595 (watch for breakdown risk)
Valuation: Reasonable at ~23x forward PE vs TCS (~29x). This makes Infosys more attractive for medium- to long-term investors.
Final Verdict: What Should You Do?
Overall, Infosys Q1 FY26 Results indicate resilience and potential upside for investors eyeing the IT space
Short-Term View (1–2 weeks): If you're holding, stay put. Add on dips near ₹1,520 or on breakout above ₹1,700.
Medium-Term View (1–2 months): Look for strength above ₹1,700 — that’s your green flag for fresh entry with sector rotation tailwinds.
Long-Term Outlook (6+ months): Infosys remains a strong bet on AI, cloud, and platform-led transformation. It’s a core portfolio stock for long-term IT exposure.
Dividend Watch
There was no interim dividend announced this quarter, but don’t rule one out in H2 FY26.
What Are Your Views?
Do you believe Infosys can sustain this momentum? Is the IT sector gearing up for a rerating — or is caution still the better play?
We’d love to hear from you. Whether you want to share your views or get tailored insights for your portfolio,👉 write to us at info@wiremeshin.com or subscribe here to join our growing community of informed investors.
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About The Author:
Sanil Pinto - Stay Informed With Sanil
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Disclaimer
This article is for informational purposes only and does not constitute investment advice. Investing in shares carries significant risk, including loss of capital, illiquidity, and valuation uncertainty. Readers are strongly encouraged to consult a SEBI-registered financial adviser before making any investment decisions. The information provided is based on publicly available data and sources believed to be reliable as of the date indicated, but may change without notice.
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