Strong Q1 Performance: Infosys reported a 2.6% sequential revenue growth and a 3.8% year-on-year growth in constant currency, driven by advancements in enterprise AI and large deal wins, totaling $3.8 billion. Operating margin remains resilient at 20.8%, with free cash flow at $884 million, equivalent to 109% of net profit.

Revised Revenue Guidance: The company has lowered its revenue growth forecast for FY '26 from a previous range of 0%-3% to a new expectation of 1%-3% in constant currency. This revision reflects ongoing geopolitical uncertainties and a cautious client spending environment, particularly concerning discretionary expenses.

Vendor Consolidation Growth: Infosys is capitalizing on increased vendor consolidation trends, securing 28 large deals and positioning itself favorably against competitors due to its strong delivery capabilities and enterprise AI solutions. This trend may lead to larger deal sizes, beneficial for revenue.