India’s second-largest IT services provider, Infosys Ltd, has guided a modest revenue growth range of 0% to 3% for the fiscal year 2025-26. The revised outlook signals ongoing softness in global IT demand, especially for discretionary spending segments, and echoes the caution seen across the sector.

In January, Infosys had narrowed its full-year revenue guidance to 4.5-5%, after an earlier downward revision in October to 3.75-4.5%.

Global Uncertainty and Tariff Concerns Affecting Sector

Like its peers, Infosys has been grappling with slower client spending and macroeconomic uncertainty. The situation has been further strained by the now-paused tariff threats from U.S. President Donald Trump, which have impacted global outsourcing sentiment and business confidence among IT clients.

Wipro, for example, has guided for a negative growth range of -1.5% to -3.5% for Q1 of FY2026. Tata Consultancy Services (TCS), the largest Indian IT exporter, does not issue formal guidance but has also flagged cautious market conditions.

Leadership Focus on Resilience, AI, and Cost Efficiency

CEO and MD Salil Parekh emphasized the company’s strategic strengths:
“We have built a resilient organisation with sharp focus on client-centricity and responsiveness to the market. Our depth in AI, cloud, and digital, combined with our strength in cost efficiency and automation, position us well.”

Despite the challenging environment, Infosys delivered robust performance with improved margins and record free cash flow.

Operational Highlights and Shareholder Returns

Cfo jayesh shanjrajka added:
“Operating margins expanded by 0.5% in FY25, reflecting disciplined execution of Project Maximus. We also delivered the highest ever free cash flows in Infosys’ history.”

The Board has proposed a final dividend of ₹22 per share. Combined with the interim dividend, this represents a 13.2% increase over the previous year.

Read More: Infosys Projects Flat to 3% Revenue Growth for FY2025-26 Amid Soft Demand and Global Headwinds