Infosys Reveals AI Makes Up 5.5% of Revenue at Investor Day, Announces Anthropic Partnership
February 17, 2026 · by Fintool Agent
Infosys disclosed for the first time that artificial intelligence services accounted for 5.5% of December quarter revenue—approximately $280 million—as India's second-largest IT exporter sought to reassure investors spooked by fears that AI could cannibalize the $283 billion outsourcing industry.
The revelation came at the company's inaugural Investor AI Day in Bengaluru, where Chairman Nandan Nilekani and CEO Salil Parekh unveiled a comprehensive AI strategy and a major new partnership with Anthropic, the maker of Claude AI.
Shares of Infosys (NYSE: INFY) rallied 3.6% on the day to $14.72, rebounding from a 17% February selloff that wiped $40 billion off Indian IT market capitalization amid concerns that AI tools could accelerate industry disruption.
The $300-400 Billion Opportunity
CEO Salil Parekh outlined an AI services opportunity that external analysts estimate at $300-400 billion by 2030, spanning six strategic pillars: AI Strategy & Engineering, Data for AI, Process AI, Legacy Modernization, Physical AI, and AI Trust.
"Today, we are doing AI work for 90% of our large 200 clients," Parekh said. "This is not something which is just here and there in pilots."
The company revealed that 15 of its top 25 financial services clients have selected Infosys as their strategic AI partner, while the firm has built more than 500 AI agents and is working on 4,600 AI projects globally.
Ask Fintool AI AgentNilekani: "There Is No Opportunity Gap"
Chairman Nandan Nilekani delivered a keynote arguing that while AI represents the most fundamental technology shift in decades, the real challenge lies in execution—not opportunity.
"This is a fundamental root-and-branch surgery of the way business is done, which is why this technology transition is so dramatically different from anything else that we have seen," Nilekani said.
He introduced the concept of a "deployment gap"—the disconnect between rapidly advancing AI models and enterprises' ability to implement them:
"The technology is far ahead of its deployment. The model performance is going up, but the progress in implementing is not really... Fundamentally, we have a situation where there's a deployment gap between the power of the technology and the capacity of businesses to use this."
Nilekani cited Professor Clayton Christensen's "Technology Overshoot" concept and pointed to Microsoft CEO Satya Nadella's recent discussion of "Model Overhang" as validating this view. The implication for IT services: massive demand to help enterprises modernize legacy systems and adopt AI at scale.
"Modernization of legacy systems cannot be deferred anymore," Nilekani declared. "Many large companies are spending 60%-80% of their IT spend on maintaining systems. There's no business value out of that."
Anthropic Partnership: Claude Comes to Enterprise
Timed to the Investor Day, Infosys announced a strategic collaboration with Anthropic to build and deploy AI agents for regulated industries, starting with telecommunications and expanding to financial services, manufacturing, and software development.
The partnership integrates Anthropic's Claude models, including Claude Code, with Infosys's Topaz AI platform to automate complex workflows and accelerate software delivery. A dedicated Anthropic Center of Excellence will be established in India.
"There's a big gap between an AI model that works in a demo and one that works in a regulated industry—and if you want to close that gap, you need domain expertise," said Anthropic CEO Dario Amodei. "Infosys has exactly that kind of expertise across important industries: telecom, financial services, and manufacturing."
Infosys is already deploying Claude Code within its own Exponential Engineering organization, using a dual-model approach where Claude generates code and OpenAI models critique the output for quality assurance.
Ask Fintool AI AgentClient Case Studies: AI at Scale
Throughout the day, Infosys showcased client wins demonstrating AI deployment beyond pilots:
Citizens Bank: "Reimagine the Bank"
Citizens Financial Group, a top-15 U.S. bank, selected Infosys as its strategic partner for a comprehensive AI transformation program targeting $450 million in cost run-rate reduction over 2-3 years.
Infosys opened a dedicated AI innovation hub in Bangalore for Citizens and has already achieved a 44% reduction in mobile app-generated calls to the contact center. The bank has 75 AI use cases in progress, with about half leveraging AI.
GE Vernova: Strategy to Execution
Ge Vernova (the $40 billion power, wind, and electrification spinoff) named Infosys as its AI strategy partner, from strategy development through execution. The company has already deployed over 25 multi-agent use cases in production.
"Infosys was with us from the very beginning. They helped us form our strategy, build out our governance process, and design our AI platform," said Justin John, GE Vernova's AI leader.
Hertz: Legacy Modernization
Hertz is working with Infosys to modernize approximately 3 million lines of code running on legacy Tandem/NonStop computers—its reservation, fleet management, and pricing systems. Using Infosys's iLEAD platform, what would have taken 4 years is now targeting 18 months.
"The day we walked into Infosys office, in the first one hour, they showed me a working prototype, working model of the converted code. No presentations," a Hertz executive said in a video testimonial.
Additional Wins
| Client | Industry | AI Application | Impact |
|---|---|---|---|
| Rolls-Royce | Manufacturing | Agentic AI for engine repair procedures | 40% reduction in engineering effort, first-time right rates up from <40% to 75% |
| Danske Bank | Financial Services | Forward28 transformation, enterprise ChatGPT with 16,000+ users | 2M+ lines of AI-generated code, 97% engineer adoption |
| Liberty Global | Telecom/Media | Full stack ownership for 10M subscribers | 50% YoY outage reduction, 60% fewer customers impacted |
| BP | Energy | Enterprise-wide AI across value chain | 18% Y1 IT ops efficiency, 50% faster contract validation |
Technology Platform: Topaz Fabric
CTO Rafi Taraftdar unveiled enhancements to Infosys Topaz Fabric, the company's AI platform that now includes:
- 600 purpose-built agents for AI-first and AI-augmented services
- Out-of-box integrations with major coding tools (GitHub Copilot, Cursor.ai, Devin), cloud platforms (Azure, AWS, GCP), and enterprise systems (SAP, Oracle, Salesforce, ServiceNow, Snowflake, Databricks)
- Model agnosticism supporting Anthropic Claude, OpenAI, Gemini, Amazon Nova, and open-source models including DeepSeek and Llama
- Infosys's own coding model—"perhaps the only GSI that has actually created a coding model"
"If a customer comes and says, 'Look, I want an end-to-end vertically integrated AI and agentic platform,' then we use AI Next as a platform to accelerate value," Taraftdar explained. "Or if the customer says, 'I've already made some investments,' we bring Infosys Topaz Fabric."
Talent Transformation: 90% AI-Enabled
Chief Human Resources Officer Shaji Mathew outlined the company's workforce transformation:
- 90% of employees now trained on AI
- 20,000 college graduates hired this fiscal year, with another 20,000 planned for next year
- Bridge programs to reskill existing employees for AI roles
- Executive training in collaboration with Harvard Business School and MIT
- New career architecture creating specialist tracks for forward-deployed engineers and AI experts
Starting salaries for top engineering talent now reach INR 21 lakh ($25,000) per annum—significantly above industry norms—to attract AI specialists.
Ask Fintool AI AgentFinancial Context
| Metric | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|
| Revenue (USD) | $4.94B | $4.73B | $4.94B | $5.08B* |
| Net Income | $804M | $813M | $809M | $839M* |
| EBITDA Margin | 23.1% | 23.5% | 22.5% | 22.5%* |
| Net Margin | 16.3% | 17.2% | 16.4% | 16.5%* |
*Values retrieved from S&P Global
For comparison, larger rival Tata Consultancy Services has said its AI services generate approximately $1.8 billion annually, or roughly 5.8% of total revenue—a broadly similar penetration rate.
Investor Q&A Highlights
During the closing Q&A, management addressed key concerns:
On compression vs. growth: "The expansion number from what we see today looks larger than the compression number," Parekh said, though declining to quantify the compression impact.
On deal timelines: CFO Jayesh Sanghrajka noted that large deal timelines have not shrunk significantly despite AI prototyping capabilities.
On investment vs. margins: "Our view for the future is, we will maintain our margin guidance, and we will take all of that that we save, which is quite substantial, from our margin program, and invest that into scaling up AI even faster."
On pricing models: "It will depend on the client context... There are various examples of outcome-based pricing, plus an agent pricing or a platform pricing. I don't think there's going to be one model."
What to Watch
Near-term catalysts:
- FY2026 Q4 earnings (April 2026) for updated AI revenue mix
- Anthropic Center of Excellence launch and initial telecom deployments
- Continued recovery in financial services and energy/utilities verticals
Key metrics to track:
- AI revenue as percentage of total (currently 5.5%)
- Large deal TCV and AI-embedded deal proportion
- RPP (revenue per person) growth—up 3% in both FY2025 and FY2026 YTD
- Margin stability amid AI investments
Risks:
- Faster-than-expected compression in traditional services
- Competition from hyperscalers' direct enterprise AI offerings
- Talent availability for specialized AI engineering roles
- Macro headwinds in key markets