Infosys Q4 results preview: Net profit, revenue likely to fall, margin may contract by 100 bps QoQ; FY26 guidance eyed

Infosys, the second largest IT services company in India, will announce its Q4 results on Thursday, April 17. The IT major will declare its earnings for the fourth quarter of FY25 as well as for the full financial year 2024-2025 tomorrow.

Infosys share price traded more than 2% lower on Wednesday ahead of the Q4 results announcement. In the past one month, Infosys shares have fallen over 10%, while the IT stock has plunged 25% on a year-to-date (YTD) basis.

The IT major Infosys is expected to report tepid earnings in the March 2025 quarter with a sequential drop in revenue due to seasonal weakness in demand and margin pressure. Analysts also expect the company to deliver a muted guidance on account of weak macroeconomic conditions due to US-induced global tariff war and lack of mega deals.

Here’s what to expect from Infosys Q4 results 2025:

Infosys Q4 Revenue

Infosys revenue in Q4FY25 is expected to fall 0.4% to ₹41,617 crore from ₹41,764 crore in the previous quarter. Revenue in dollar terms is estimated to drop 1.6% to $4,861 million from $4,939 million, quarter-on-quarter (QoQ). The company’s revenue growth in constant currency (CC) terms may decline by 310 basis points (bps) to -1.4% in Q4FY25, according to estimates by JM Financial.

Analysts said the growth headwinds for Infosys include lower billing days and normalisation of third party items for sales, while lower furloughs may act as a tailwind. They expect 15 bps QoQ cross-currency headwind.

Moreover, lower revenues from sale of third party items for service delivery and seasonal weakness in demand are expected to lead to drop in revenues for Infosys.

“March quarter has been Achilles’ heel for Infosys,” Kotak Institutional Equities said.

Large deal TCV (Total Contract Value) is expected to be at $3 billion, a decline on YoY comparison.

While the deal pipeline is healthy, closures are facing delays due to slower decision-making. Clients remain focused on cost take-outs over discretionary spending, with tariff wars adding pressure, brokerage firm Motilal Oswal Financial Services said.

Infosys Q4 Net Profit

Infosys is expected to report a net profit of ₹6,488 crore in the March 2025 quarter, registering a drop of 4.7% from ₹6,806 crore in the December 2024 quarter, according to JM Financial.

Infosys Q4 EBIT, Margin

Infosys’ operational performance in Q4FY25 is also expected to remain weak, with the company witnessing pressure on margins. At the operational level, Earnings Before Interest and Taxes (EBIT) in Q4FY25 is estimated to fall by 5% to ₹8,472 crore from ₹8,912 crore, QoQ.

EBIT margin in Q4 is expected to contract by 100 bps to 20.4% from 21.3%, sequentially, on the back of wage hike, visa cost, lower billing days and higher marketing expenses. However, cost optimizations and lower third-party expenses may partially offset the impact.

Infosys Guidance for FY26

Motilal Oswal expects Infosys to provide an initial FY26 revenue growth guidance band of 2.5% - 5%. Nuvama Institutional Equities estimates the IT major to announce FY26 revenue growth guidance to 2% – 5% CC YoY and margins guidance to remain at 20% - 22% for FY26.

JM Financial expects Infosys to guide 3% - 5% YoY CC for FY26, while Kotak Equities expects a CC revenue growth guidance of 1% - 4% for FY26.

Infosys Q4 Results: What to watch out for?

In Infosys Q4 results, investors are likely to focus on slowdown in spending due to tariff wars and deteriorating macros, program cancellations, if any, strength of deal pipeline, especially noting muted large deal wins over the past three quarters and pricing pressure from client demand of AI-driven efficiency.

Moreover, margin levers in FY2026 and assumptions underlying guidance and whether guidance is backended or front-loaded, will also be eyed.

At 1:15 PM, Infosys shares were trading 0.96% lower at ₹1,413.55 apiece on the BSE. 

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