Infosys FY26 revenue rises to $20.2bn, declares ₹48 dividend
Infosys Limited reported fiscal 2026 revenue of US$ 20.2 billion, growing 3.1% in constant currency, while maintaining an adjusted operating margin of 21%. The Board recommended a total dividend of ₹48 per share, comprising a final dividend of ₹25 and an interim dividend of ₹23. The company generated US$ 3.7 billion in free cash flow, representing 112.6% of net profit.
*this image is generated using AI for illustrative purposes only.
Infosys Limited delivered revenue of US$ 20.2 billion for fiscal 2026, reflecting a 3.1% growth in constant currency, while maintaining a strong adjusted operating margin of 21%. The technology major generated US$ 3.7 billion in free cash flow, which constituted 112.6% of net profit for the year. The company’s large deal total contract value (TCV) stood at US$ 14.9 billion, with 55% classified as net new business, indicating strong client trust and strategic relevance.
Financial Performance and Capital Allocation
The Board of Directors has recommended a final dividend of ₹25 per share for the financial year ending March 31, 2026. This follows an interim dividend of ₹23 per share already paid during the year, resulting in a total dividend of ₹48 per share, an increase of 11.6% year-on-year. The total payout for FY26, including the recently completed share buyback, amounted to 113.9% of free cash flow. Under its Capital Allocation Policy, the company has returned 82.1% of free cash flow cumulatively over the past two years.
Key Financial Metrics for FY26
| Metric | Value |
|---|---|
| Revenue | US$ 20.2 billion |
| Constant Currency Growth | 3.1% |
| Adjusted Operating Margin | 21% |
| Free Cash Flow | US$ 3.7 billion |
| Free Cash Flow (% of Net Profit) | 112.6% |
| Large Deal TCV | US$ 14.9 billion |
| Total Dividend | ₹48 per share |
Strategic AI Initiatives and Growth
Infosys is positioning itself to capitalize on the AI-first services opportunity, estimated to be between US$ 300 billion and US$ 400 billion by 2030. The company is collaborating with 90% of its top 200 clients on their AI journeys. AI services revenue was approximately 5.5% of total revenue in the third quarter, annualizing to about US$ 1 billion, and continues to grow at a fast pace. The company’s AI strategy is supported by its Infosys Topaz and Infosys Cobalt platforms, which integrate AI capabilities with cloud strengths to help enterprises scale with speed and confidence.
Acquisitions and Board Appointments
During fiscal 2026, Infosys completed the acquisition of MRE Consulting Limited and the Missing Link Group. Additionally, the company finalized agreements to acquire a 75% stake in Versent Group and acquire Stratus Global LLC and Optimum Achieve Holdings, Inc. On the governance front, Nitin Paranjpe was appointed Vice Chairman effective April 30, 2026. The Board also appointed Diane Jurgens as an Independent Director effective April 22, 2026, for a three-year term, and reappointed Helene Potier as an Independent Director for a second five-year term effective May 26, 2026.
Operational Resilience and ESG
The company ended the fiscal year with a workforce of over 325,000 employees, having recruited over 20,000 college graduates during the year. Infosys achieved carbon neutrality for the seventh consecutive year across its global operations. Renewables accounted for 81.8% of India operations, and 11 campuses achieved true zero waste certification. The statutory auditors, Deloitte Haskins & Sells LLP, and the secretarial auditor, Makarand M. Joshi and Company, expressed unqualified opinions on the financial statements for the year ended March 31, 2026.
Historical Stock Returns for Infosys
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.50% | -6.10% | -13.83% | -39.17% | -37.55% | -36.00% |
How will Infosys balance aggressive capital allocation, such as the 113.9% FY26 payout, with the need to fund R&D for its AI-first strategy?
What is the projected timeline for AI services to expand beyond the current 5.5% of revenue as the $300-$400 billion market opportunity matures?
Will the recent acquisitions in consulting and digital engineering significantly boost margins, or could integration costs pressure operating profitability in the near term?
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