Infosys outperformed TCS in the December quarter. Its shares surged up to 8% on the NYSE early Wednesday.
The company reported stronger-than-expected sales. Large deal wins drove this growth.
Moreover, Infosys upgraded its FY26 revenue guidance. It now targets 3% to 3.5% growth.
Revenue grew 0.6% sequentially in constant currency. Year-on-year, it rose 1.7%.
In dollar terms, revenue climbed 0.5% quarter-on-quarter. It jumped 3.2% year-on-year to $5 billion.
In contrast, TCS saw only 0.8% sequential growth in constant currency. It posted a 2.6% year-on-year decline.
HCLTech performed even better. It recorded 4.2% quarter-on-quarter growth. Additionally, it achieved 4.8% year-on-year increase.
Infosys earlier raised its current-year guidance. The range now stands at 2% to 3%. Previously, it was 1% to 3%.
The company kept operating margin guidance steady. It expects 20% to 22%.
CEO Salil Parekh highlighted key strengths. Several large deals closed in recent quarters. Execution remained strong this quarter.
Furthermore, financial services showed improvement. Energy, utilities, and resources sectors gained momentum.
Infosys emerged as the AI partner of choice. This happened with its largest clients. Such wins boosted confidence for the next year.
Large deal wins totaled $4.8 billion this quarter. Notably, 57% came from net-new clients. This signals faster client decisions and conversions.
However, operating margin dipped. It fell 2.6% sequentially to 18.4%. Year-on-year, the drop reached 2.9%.
A one-time charge hit results. Infosys booked Rs 1,289 crore due to revised labour code implementation.
Overall, demand visibility improves. Deal momentum continues to build. Infosys positions itself strongly for recovery.
Investors reacted positively. The stock rally reflects renewed optimism.
