Infosys Lifts Revenue Outlook, Fueling Optimism for India’s IT Sector Recovery
Infosys unexpectedly raised its revenue forecast for the fiscal year ending March 2026, pointing to improving demand and steady discretionary technology spending by clients. India’s second-largest IT services exporter now expects revenue growth of 3%–3.5%, up from its earlier guidance of 2%–3%. The announcement lifted Infosys’ U.S.-listed shares and added to optimism about a broader recovery in India’s $283 billion IT industry, following similar upbeat signals from market leader Tata Consultancy Services earlier this week.
The company said growth was being driven by renewed momentum in its core financial services business, as well as strong demand from the energy segment. Clients who had previously delayed technology spending amid tariff-related uncertainty are now investing in artificial intelligence projects. Analysts said some technology investments can no longer be postponed, supporting a gradual industry-wide recovery.
For the third quarter, Infosys reported revenue of 454.79 billion rupees, beating market expectations, while large deal wins rose sharply to $4.8 billion. However, net profit fell 2.2% due to a one-time charge linked to India’s new labour codes. Chief Executive Salil Parekh said Infosys has emerged as a preferred AI partner for large clients, reinforcing confidence in demand as the company heads into the next financial year.
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