Infosys Limited

Large deal signings reached $3.8B in Q1 FY2026, providing multi-year managed services visibility alongside long-term outsourcing contracts. A material share of revenue remains discretionary project work, however, as reflected in FY2026 initial constant-currency guidance of 0-3%, the weakest guidance issued in years.

Revenue spans six industry verticals including Financial Services, Manufacturing, Retail, Energy, Hi-Tech, and Life Sciences, with no single vertical dominant. However, 95%+ of FY2025 revenue came from IT services delivery, meaning vertical diversification does not offset concentration within a single service category and delivery model.

North America represented 57.9% and Europe 29.8% of FY2025 revenue, with India contributing only 3.1% despite being the company's home market. Two-region dominance provides reasonable international spread but leaves Infosys meaningfully exposed to US enterprise spending cycles and US immigration policy, neither conferring advantage nor being as concentrated as a single-country model.

Operating margin has held in the 20-21% range across FY2021-FY2025, reflecting modest leverage through workforce utilization management and reusable delivery platforms including Infosys Cobalt and Topaz. The core model is labor-intensive: headcount tracks revenue closely, and meaningful fixed-cost leverage is structurally limited.

Infosys serves large global enterprises under multi-year managed services contracts that become operationally embedded, supporting above-average repeat-purchase dynamics. Revenue is not subscription-based but is recurring in practice, with the company reporting 1,011 million-dollar client accounts and 41 clients contributing over $100 million annually as of FY2025.