Infosys Raises Guidance After $4.8B Deal Quarter, $1.6B NHS Win Anchors AI Pivot
January 14, 2026 · by Fintool Agent
Infosys+10.45% raised its full-year revenue guidance and delivered $4.8 billion in large deal wins—including a record $1.6 billion NHS contract—sending U.S.-listed ADRs up roughly 9% as investors bet the IT services giant has emerged as a leading enterprise AI partner.
The Bengaluru-based company upgraded its FY26 constant-currency revenue growth forecast to 3.0%-3.5%, up from 2.0%-3.0%, after posting Q3 revenue of $5.1 billion that rose 0.6% sequentially and 1.7% year-over-year.
"Our performance was broad-based in Q3 with sequential revenue growth, margin expansion on an adjusted basis, stellar large-deal wins and robust free cash flow generation in a seasonally weak quarter," CFO Jayesh Sanghrajka said on the earnings call.
Ask Fintool AI AgentNHS Deal: $1.6 Billion Healthcare Transformation
The standout win was a $1.6 billion multi-year contract with the UK's National Health Service—Infosys's largest healthcare deal and one of its biggest contracts overall.
"This deal expands our work in the healthcare sector," CEO Salil Parekh said. "We will help NHS leverage AI to streamline operations and improve patient care for UK citizens."
The healthcare vertical benefited immediately from the NHS ramp, contributing meaningfully to Q3's sequential growth. With the NHS serving approximately 1.4 million employees and representing the world's largest publicly funded healthcare system, the deal demonstrates enterprise appetite for AI-driven modernization of legacy government infrastructure.
AI: From Projects to Platform
Infosys has evolved its AI strategy from point projects to a platform play. The company now works with 90% of its top 200 clients on AI initiatives, is executing 4,600 AI projects, has generated over 28 million lines of code using AI tools, and has built more than 500 agents.
CEO Parekh outlined six "AI value pools" the company sees as growth drivers: AI engineering services, data for AI, agents for operations, AI software development and legacy modernization, AI and physical devices, and AI services.
"We believe we are uniquely positioned to capture market share across these value pools and emerge as the leading AI value creator for global enterprises," Parekh said.
The company launched Topaz Fabric, an agent services suite that helps enterprises manage and deploy AI agents at scale. Infosys also announced a partnership with Cognition to combine Cognition's Devin software agent with Infosys's client landscape knowledge and industry expertise.
Ask Fintool AI AgentDeal Momentum: Best Nine Months in Company History
The $4.8 billion in Q3 large deals—57% net new across 26 contracts including two mega deals—brought nine-month large deal TCV to $11.7 billion, exceeding full-year FY25's total. Net new deal TCV for the nine months rose 40% year-over-year.
| Metric | Q3 FY26 | 9M FY26 | Commentary |
|---|---|---|---|
| Large Deal TCV | $4.8B | $11.7B | Exceeds full-year FY25 |
| Net New % | 57% | N/A | Strong new logo wins |
| Number of Deals | 26 | N/A | Including 2 mega deals |
| Net New TCV YoY | N/A | +40% | Strong competitive positioning |
By vertical, financial services led with 10 deals, followed by retail (4), life sciences (3), manufacturing (3), communications (2), energy/utilities (2), and high-tech (2). Geographically, 16 deals closed in the Americas, 9 in Europe, and 1 in rest of world.
Outlook: FY27 Acceleration in Financial Services and Energy
Management signaled confidence beyond the current fiscal year. Parekh explicitly forecast growth acceleration in FY27 over FY26 for both financial services and energy/utilities/resources, citing deal wins and AI partner status with 15 of the top 25 clients in each vertical.
"In financial services, we see good traction in large deals and discretionary projects... We expect acceleration in financial year 2027 over financial year 2026," Parekh said.
Financial services posted 3.9% year-over-year constant-currency growth in Q3, with nine-month growth around 5%. The company is seeing discretionary spending return in banking, payments, mortgages, and wealth management.
Ask Fintool AI AgentMargins Stable Despite Investments
Adjusted operating margin expanded 20 basis points sequentially to 21.2%, at the midpoint of the 20%-22% guidance. The company absorbed a 50 basis point headwind from accelerated sales and marketing investments while maintaining margin discipline.
A one-time charge related to Indian labor code changes impacted reported margins, but management noted this creates only a 15 basis point recurring headwind.
Free cash flow came in at $915 million ($965 million adjusted), representing 113% of net profit—continuing Infosys's track record of cash conversion above 100%.
What to Watch
Investor Day: Management will provide deeper AI strategy details, including a walkthrough of AI labs and the scale of opportunity in the six value pools.
FY27 Guidance: April's call will provide first formal FY27 outlook. Early signals suggest growth acceleration in key verticals.
NHS Ramp: Revenue contribution from the $1.6 billion deal will build over coming quarters, supporting healthcare vertical growth.
Daimler Contract: Management noted current contracts are valid through December 2026 amid recent press reports about the Daimler relationship.
The guidance raise and deal momentum mark a clear inflection for Infosys. The question now is whether the AI-driven opportunity can translate into sustained double-digit growth as competitors also pivot toward enterprise AI services.
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