A maker of software, IT consulting, and digital services for businesses around the world, helping companies modernize their technology and operations. Infosys was founded in Pune, India in 1981 by seven engineers, including N. R. Narayana Murthy, who famously started the venture with a loan from his wife. The name blends "information" and "systems," and the company has grown into one of the world's largest technology services firms.
20-F · Fiscal year ended Mar 31, 2026 · SEC filing ↗
Infosys FY2026 revenue rose 4.6% to $20.2B, but a $143M labour charge and cost pressures pushed operating margin down to 20.3%.
fell to its lowest level in at least five years. rose 4.6% to $20.2 billion and increased 4.9% to $3.3 billion, but the profit gain was driven entirely by a lower tax rate rather than operating performance, as a one-time $143 million charge from India's new Labour Codes and higher employee costs compressed margins. The company enters FY2027 with a record $2.0 billion and two announced acquisitions, but the core business of delivering IT services is becoming more expensive to run.
Key takeaways
Reported declined 80 to 20.3%, the lowest since at least FY2022, as cost of sales and selling expenses rose and the company booked a one-time $143 million charge related to India's new Labour Codes.
rose 4.9% to $3,316 million, but the increase was driven by a 250-basis-point drop in the to 26.4%, which stemmed from reversals of prior-year tax provisions.
increased 4.6% to $20,158 million, with growth of 3.1%, as improved pricing and productivity were partially offset by lower utilization, which fell to 81.1% including trainees.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
This information is set forth under the section titled ‘Operating and Financial Review and Prospects’ is as set out above in this Annual Report on Form 20-F and such information is incorporated herein by reference.
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This information is set forth under the section titled ‘Operating and Financial Review and Prospects’ is as set out above in this Annual Report on Form 20-F and such information is incorporated herein by reference.
Infosys faces material risks from AI-driven disruption, client concentration, geopolitical and immigration policy shifts, and evolving data privacy and cybersecurity threats.
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remained strong at $4,039 million, and the company deployed $4,139 million in total shareholder returns—$2,133 million in dividends and a $2,006 million —while cash and equivalents declined to $2,341 million.
The company disclosed post-period acquisitions of Optimum Achieve Holdings Inc. for up to $465 million and Stratus Global LLC for up to $95 million, and expects to close the Versent Group acquisition for up to AUD 233 million.
Fixed-price contracts rose to 54% of total , increasing the company's exposure to cost overruns and wage inflation, while client concentration edged up with the top five clients accounting for 12.9% of revenue.
What changed
The FY2025 watch item on whether large deal would convert to growth above 3.9% was partially resolved: revenue growth accelerated to 4.6%, but growth of 3.1% suggests currency tailwinds rather than volume expansion drove the improvement.
The FY2025 concern about other income and the materialized in reverse: other income was not flagged as a this year, but the effective tax rate fell 250 to 26.4% due to prior-year provision reversals, which single-handedly drove the 4.9% increase.
The Project Maximus efficiency gains that widened to 21.1% in FY2025 did not hold: reported operating margin fell to 20.3%, and even excluding the $143 million Labour Codes charge, the underlying margin would have been roughly flat, suggesting the program's benefits are now being offset by cost pressures.
The McCamish cybersecurity incident from FY2024 appears to have been contained: the proposed $17.5 million settlement disclosed in FY2025 was not flagged as a new material development, and the Financial Services margin trajectory was not called out as a specific concern this year.
Large deal fell to $11.6 billion in FY2025 from the record $17.7 billion in FY2024, and the FY2026 filing does not report a new large deal TCV figure, breaking the pattern of disclosure from the prior four years.
What to watch
Whether the $143 million Labour Codes charge is truly one-time, or whether the new Indian labour regulations create recurring cost headwinds that further compress from the current 20.3%.
The trajectory: the 250-basis-point drop to 26.4% was driven by prior-year provision reversals that may not repeat, and any normalization would directly reduce growth.
The integration and contribution from the three announced acquisitions (Optimum Achieve, Stratus Global, Versent Group), which together represent up to approximately $600 million in deal value and will test whether inorganic growth can offset organic volume softness.
Utilization rates, which fell to 81.1% including trainees: a further decline would signal that headcount growth is outpacing demand, while a recovery would indicate that the large deals won in prior years are finally ramping up.
Rapid AI advancements are compressing innovation cycles, reducing demand for traditional services, and intensifying pricing pressure, which could shrink market share and margins.
A U.S. DOJ investigation into H-1B visa classifications and a new $100,000 fee on certain H-1B applications create direct legal and cost risks for the company's U.S. workforce model.
The top 5 and 10 clients accounted for 12.9% and 20.5% of fiscal 2026 , respectively, making the business vulnerable to the loss of any major client or large contract.
Ongoing litigation with Cognizant TriZetto over alleged trade secret misappropriation could result in substantial damages or an injunction against using the disputed software.
Fixed-price contracts represented 54% of total in fiscal 2026, exposing profitability to cost overruns, estimation errors, and wage inflation.
Geopolitical conflicts, sanctions, and restrictive immigration or trade policies in key markets like the U.S. and Europe could disrupt client spending and the company's global delivery model.
Infosys provides AI-first consulting and technology services globally, operating across six main industry segments and four geographic markets.
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The company organizes its go-to-market by industry verticals including Financial Services (27.9% of FY2026 ), Manufacturing (16.3%), and Energy/Utilities (13.3%).
Geographically, North America generated 56.1% of FY2026 , followed by Europe at 32.1%, with the remainder from the Rest of the World and India.
Infosys's strategy centers on being an 'AI-first' navigator for clients, with a two-pronged approach: AI-first services for new growth and AI-augmented services to enhance existing offerings.
Key proprietary platforms include Infosys Topaz (AI suite), Infosys Cobalt (cloud services), and Infosys Aster (AI-amplified marketing), alongside industry products like Finacle for digital banking.
The company employed 328,594 people as of March 31, 2026, and its top five clients together contributed 12.9% of total revenues in fiscal 2026.
Infosys faces intense competition from both large technology platforms expanding their services and niche, specialized players, and is responding with platform-led, IP-driven offerings.
Fiscal 2026 revenue grew 4.6% to $20.2B, but reported operating margin fell to 20.3% due to higher costs and a $143M Labour Codes charge.
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increased 4.6% (3.1% in ) to $20,158 million, driven by improved pricing, productivity, and acquisitions, with Manufacturing revenue share rising to 16.3%.
Reported declined 80 to 20.3%, impacted by a 0.3% rise in cost of sales, a 0.4% increase in selling and marketing expenses, and a one-time $143 million charge from India's new Labour Codes.
contracted to 30.2% from 30.5% as higher employee and subcontractor costs, lower utilization (81.1% including trainees), and the Labour Codes impact offset benefits from an improved offshore mix.
rose 4.9% to $3,316 million, with net margin up 10 to 16.5%, as a 250 bps lower (26.4%) from prior-year tax provision reversals more than offset operating expense increases.
generation remained strong, with $4,039 million from operations; capital allocation included $2,133 million in dividends and a $2,006 million , while cash and equivalents stood at $2,341 million.
The company announced post-period acquisitions of Optimum Achieve Holdings Inc. for up to $465 million and Stratus Global LLC for up to $95 million, and expects to close the Versent Group acquisition for up to AUD 233 million.