Infosys Ltd

AI ROI Gap findings

• Press release announces Infosys report titled The AI ROI Gap: Turning Ambition Into Enterprise Value.
• 80% of executives view AI as critical for new revenue opportunities, but 25% report ROI below expectations.
• AI currently adds most value through speed to market and cost savings rather than revenue growth.
• Two-thirds report difficulty measuring AI ROI; many lack a centralized KPI framework.
• Nearly three-quarters say fewer than 25% of AI pilots scale enterprise-wide.
• Governance, training, and human oversight are emerging as critical factors for AI ROI.
• Infosys advises defining business outcomes before implementing technology and expanding non-revenue metrics.
• Strengthened governance practices should align leadership, workforce behavior, and AI adoption.
• Report is available on Infosys site for further details.

Allotment Details

• Infosys allotted 1,75,865 equity shares on Aug 24, 2026 via RSU exercise.
• 18,228 shares under the 2015 Incentive Compensation Plan; 1,57,637 under Infosys ESOP 2019.
• Issued and subscribed share capital increased to ₹20,29,11,62,310, comprising 4,05,82,32,462 equity shares.

Appointment details

• Type of change: Appointment as Segment Head for SURE and Senior Management Personnel
• Name and designation: Mitrankur Majumdar, Executive VP and Global Head, SURE
• Effective date: August 24, 2026
• Reason: Replacement due to Ashiss Kumar Dash's transition to CEO designate; Dash to focus on training
• Profile: EVP and Global Head, SURE; 30+ years' experience in AI, data, cloud
• Relationships with other directors: Not Applicable

Everest Group recognition

• Infosys Aster designated Leader in Everest Group's Marketing Transformation PEAK Matrix 2026.
• Everest Group evaluated 29 providers; Infosys Aster recognized for AI-first capabilities and IP.
• Adobe-led marketing transformation proposition and ecosystem partnerships highlighted.
• Infosys Topaz AI offerings underpin end-to-end marketing transformation across the value chain.

Collaboration overview

• Infosys to deliver end-to-end managed services across Knorr-Bremse's enterprise application ecosystem.
• Scope covers full stack from ERP and data platforms to PLM systems.
• Uses Infosys Topaz and AI capabilities to modernize IT landscape.
• Aim is to improve service quality, resilience, and governance across global operations.
• No contract value or financial terms disclosed.
• Part of Knorr-Bremse's Tech4Value IT transformation program.
• Long-term collaboration aimed at accelerating a value-driven IT operating model.
• Expected outcomes include productivity gains from AI-led automation.
• Announcement date August 18, 2026.

Investor meetings

• NDRs and investor meetings scheduled across Chicago, Hong Kong, New York, Kuala Lumpur, Boston, and Singapore.
• Chicago on Aug 21; participants include CFO Jayesh Sanghrajka.
• Hong Kong on Aug 24-25; IR heads Sandeep Mahindroo and Sweta Sheth.
• New York on Aug 25-26; CFO Jayesh Sanghrajka and Ganesh Ramasubramanian to attend.
• Kuala Lumpur on Aug 26; Sweta Sheth to attend.
• Boston on Aug 27; CFO Jayesh Sanghrajka and Ganesh Ramasubramanian to attend.
• Singapore on Aug 27-28; IR team Sandeep Mahindroo and Sweta Sheth to attend.

Investor meetings

• Infosys management will participate in two investor events in Mumbai in August 2026.
• August 14, 2026: Equirus Annual India Conference, group and one-on-one meetings.
• August 17, 2026: Motilal Oswal Global Investor Conference, group and one-on-one meetings.
• Place: Mumbai; Participants include Sweta Sheth, Sandeep Mahindroo, and Ganesh Ramasubramanian.

Agreement overview

• Infosys and Crocs, Inc. sign a ten-year strategic IT transformation agreement.
• Objective is to modernize Crocs' core IT systems and enable scalable global growth.
• The scope covers enterprise IT and business operations across Crocs' global footprint.
• AI-first platforms will be applied to unify data and enable real-time insight-driven decisions.
• Expected outcomes include reduced costs, improved agility, efficiency, and customer experience.
• Announcement date is August 6, 2026; no disclosed financial value.
• Counterparty is Crocs, Inc., headquartered in Colorado.

Customer win and platform deployment

• Investec selects Finacle SaaS on Microsoft Azure for multi-country digital banking modernization.
• Regions covered: South Africa, UK, Mauritius, and Channel Islands.
• Modules include Deposits, Lending, Virtual Accounts Management, and Liquidity Management.
• Cloud-native SaaS via Microsoft Marketplace aims to enhance agility and compliance.

Financial Performance

• Q1 revenue grew 2.4% year-on-year, 1% quarter-on-quarter in constant currency.
• AI services revenue was 8.2% of total revenue in Q1.
• Large deals totaled $3.6 billion with 61% net new.
• Operating margin stood at 21.1% in Q1.
• Free cash flow was $955 million.
• Earnings per share rose 15% year-on-year.
• Consolidated cash and equivalents were $3.9 billion; debt-free.
• DSO declined to 63 days; unbilled days 76.
• Headcount reduced by 500 after acquisitions; 2,000 added via acquisitions.
• Onsite mix excluding acquisitions is expected to fall 0.75% to 1%.
• Utilization excluding trainees rose 1.9% to 84.9%.
• Tax rate guidance for the year is 29%-30%.
• EPS for the quarter was INR 19.19; up 15% YoY.

AI Strategy and Capabilities

• Hexagon comprises six AI focus areas guiding client solutions.
• AI revenue is 8.2% of revenue, with double-digit QoQ growth.
• Over 80,000 employees work on coding tools for clients.
• 6,000 frontier engineers planned over the next few years.
• Topaz Fabric enables data-sovereign AI with multi-model foundation support.
• Clients can run any foundation model, on-cloud or on their own servers.
• Token-cost optimization helps control AI expenditure.

Guidance and Outlook

• Full-year revenue growth guidance revised to 1.5% to 3%.
• Operating margin guidance remains 20% to 22%.
• Acquisitions Optimum Healthcare and Stratus contribute about 1.7% to guidance.
• Onsite mix expected to reduce by 0.75% to 1%.
• Macro remains volatile; end-year improvement uncertain.

Q&A Takeaways

• Dash appointed as internal CEO-designate; transition involves coaching and mentorship.
• Macro uncertainty and one-off EURS termination influenced Q1; pipeline remains robust.
• AI revenue momentum strong; 8.2% of revenue; six value pools; Topaz Fabric critical.
• Six consolidation deals yielded about $700 million net new.
• Rupee depreciation tailwinds; wage hikes and acquisitions offset by Maximus and currency.

Acquisitions and Strategic Moves

• Acquisitions closed: Optimum Healthcare and Stratus; ~1.7% guidance contribution.
• Not pursuing data-center investments at this stage.
• Life Sciences and Healthcare acquisitions completed; potential in Telco and Financial Services.