Infosys (NYSE:INFY) raised its full-year revenue forecast on Wednesday after reporting third-quarter results that surpassed Wall Street expectations, signaling a resilient recovery in enterprise technology spending.
The Bangalore-based outsourcing giant now expects revenue to grow between 3% and 3.5% for the fiscal year ending March 2026, up from its previous projection of 2% to 3%.
For the quarter ended December 31, 2025, Infosys reported net profit of $747 million, or 18 cents per share.
On an adjusted basis, earnings reached 21 cents per share, topping the 20-cent average estimate from analysts surveyed by Zacks Investment Research.
Revenue rose to $5.1 billion, exceeding the $5.08 billion forecast by the Street.
The upgraded guidance reflects a surge in demand for the company’s "AI-first" services, specifically its Topaz generative AI platform.
Infosys reported a large deal total contract value (TCV) of $4.8 billion for the quarter, with "net new" deals accounting for 57% of that figure.
Despite seasonal headwinds like winter furloughs in the U.S. and Europe, the company managed to maintain stable operating margins between 20% and 22%.
The results come as a relief to the broader Indian IT sector, which has faced concerns over sluggish discretionary spending.